SAN FRANCISCO--(Business Wire)--
The California Department of Financial Institutions (DFI) announced today that
regulators have closed United Commercial Bank citing inadequate capital and
other material weaknesses.
As of October 29, 2009, United Commercial Bank, San Francisco, had total assets
of approximately $10.9 billion and total deposits of approximately $7.5 billion.
The DFI has been closely monitoring the bank and had ordered it to increase its
capital reserves to a safe and sound level, but efforts by the bank to do so
were unsuccessful.
The closure of United Commercial Bank was conducted with the cooperation of the
Commissioner or Superintendent of the following states: Georgia, Massachusetts,
New York, Texas and Washington.
Immediately following the closure, the DFI named the Federal Deposit Insurance
Corporation (FDIC) as Receiver of United Commercial Bank. The depositors of
United Commercial Bank are protected by the FDIC. The FDIC has accepted a bid
from East West Bank, a state-chartered bank located in Pasadena, California, to
assume the deposits and substantially all of the assets of United Commercial
Bank. For information about FDIC coverage limits and requirements, visit
www.fdic.gov or call toll-free 1-877-ASK-FDIC.
DFI supervises over 700 state financial institutions. Maintaining the integrity
of financial services remains the primary mission of the Department. The DFI is
responsible for administering state laws regulating state-licensed financial
institutions: banks, credit unions, industrial banks, trust companies, offices
of foreign banks, issuers of travelers` checks and payment instruments (money
orders), and money transmitters. In addition to posting information about its
licensees, the DFI Web site features consumer tips on a variety of financial
topics and consumer brochures in seven languages.
DFI reports to Business, Transportation & Housing Agency Secretary Dale E.
Bonner and Governor Arnold Schwarzenegger.
California Department of Financial Institutions
Alana Golden, 916-323-7012 or 916-322-5966
Public Information Officer
www.dfi.ca.gov
Copyright Business Wire 2009
