State Closes United Commercial Bank
(San Francisco, CA) - 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.
# # #