The Federal Deposit Insurance Corporation says five more U.S. banks failed last week, including United Commercial Bank, a San Francisco-based institution with assets totaling more than $11 billion.
The 2009 toll has now risen to 120, with banks continuing to go under because of the weight of bad real estate loans.
East West Bank, Pasadena, California, agreed to assume all of the deposits of United Commercial Bank. This agreement included all U.S. branches of United Commercial Bank, the Hong Kong branch of United Commercial Bank, and the subsidiary of United Commercial Bank headquartered in Shanghai, China, United Commercial Bank, FDIC said.
As of October 23, 2009, United Commercial Bank had total assets of $11.2 billion and total deposits of approximately $7.5 billion. East West Bank paid the FDIC a premium of 1.1 percent for the right to assume all of the deposits of United Commercial Bank. In addition to assuming all of the deposits of the failed bank, East West Bank agreed to purchase approximately $10.2 billion in assets of the failed bank. As part of the purchase and assumption agreement, the FDIC transferred to East West Bank all qualified financial contracts to which United Commercial Bank was a party and those contracts remain in full force and effect. FDIC also closed:
Recent tweets about Financial Services Sector