WASHINGTON (AP) — Regulators have shut down two big California banks, bringing to 140 the number of U.S. banks brought down this year by the weak economy and mounting loan defaults.
Earlier Friday, regulators shut down banks in Alabama, Florida, Georgia, Michigan and Illinois.
The Federal Deposit Insurance Corp. has taken over the seven, including Imperial Capital Bank of La Jolla, which has about $4 billion in assets and $2.8 billion in deposits, and First Federal Bank of California, based in Santa Monica, with $6.1 billion of assets and $4.5 billion of deposits.
Los Angeles-based City National Bank is acquiring all of Imperial Capital's deposits, as well as $3.3 billion of its assets. OneWest Bank of Pasadena, Calif., is buying all of First Federal Bank's assets and deposits.
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