Federal regulators take over California National Bank

Oct. 30, 2009 | Molly Peterson | KPCC

Download

The Federal Deposit Insurance Corp has taken over Los Angeles-based California National Bank.

Cal National's demise would be the fourth largest U.S. bank failure this year. The bank is also the fourth-biggest based in L.A. County. It's a unit of a privately-held Illinois company that holds seven other banks too.

CA/Local News

The Times reports that U.S. Bank may acquire all of them. Cal National had half a billion dollars invested in Fannie Mae and Freddie Mac preferred securities. Their value dropped precipitously after last year's mortgage lender takeovers.

The bank had significantly more foreclosed properties on its books this year than last, and plenty of borrowers fell behind in repayments. If U.S. Bank takes over Cal National, the branches, including one in a building near KPCC's downtown L.A. newsroom, could open soon under the new name.

Steve
3 months, 1 week ago

Cal National scumbags. I asked a VP at the bank if they were safe and well invested in this financial crisis and was told that they were very well positioned and conservatively invested. I guess that was untrue?

Danny
3 months, 1 week ago

I might not see that cute teller anymore....maybe I can get her number is she's there on Saturday.

Christina
3 months, 1 week ago

I like the tellers at Encino branch. they are very friendly and know how to handle their job. hopfuly they will keep their job.

Justin
3 months, 1 week ago

Good thing US Bank took over. I hope the Customers at Cal National had their accounts covered by the FDIC insurance. I know some friends that were under insured at some other Banks that failed and lost $600,000.

Cal National was not a very well managed Bank as you can see.

Robert
3 months, 1 week ago

Great, I put 15 thousand plus in yesterday in a cd and no one said crap. Guess we should get out the tin cans and bury the cash in the bak yard..

Jhd
3 months, 1 week ago

Joe d

Things are going to be ok. They open today

i'D

Albert Serrantino
3 months, 1 week ago

I was sorry to see that Can National Bank go . but was happy to see them taken over so soon . They are a great Bank and i will still keep doing business there . All the people there are the Greatest and I'll wish them all well , I am a regular customerand will continue to be a good customer . Albert S.

JONATHAN
3 months, 1 week ago

Cal National is not a business Bank. I moved all my accounts a year ago since they can not handle business accounts. I will not bank with them again.

Scott
3 months, 1 week ago

Last year, the branch manager was lamenting that regulations required the bank to have holdings in Fannie and Freddy.

Comments disabled after 14 days