United States banking experience "Black Friday"

United States financial supervision authorities of 30 October announced to close California National Bank 9 banks, since the financial crisis since the outbreak of the largest bank failure in a single record. At this point, the United States this year 115 bank failures.

Reuters review said that one day 9 bank failures, the show comes from the subprime mortgage crisis of non-performing loan problems continue to undermine the United States banking entities.

Closures

Federal Deposit Insurance Corporation today announced the close California National Bank and the other eight smaller private bank.

This 9 Bank distribution in California, Illinois, Texas and Arizona. As of September, these banks with total assets of $ 194 million, total deposits of 154 million.

United States bank company branch "Minneapolis United States Bank" agreed to take over all of these bank accounts and most of the assets. 9 banks all 153 branches 31 October onwards will be "Minneapolis United States Bank" signs of business.

This 9 Bank, National Bank of California's largest, with more than 70 billion in assets and 68 branches, is the fourth largest commercial banks in the city of Los Angeles is also the collapse of the United States since this year the fourth-largest bank.

In the financial crisis the fallen maximum deposit and loan institutions is the largest loan agencies Washington Mutual Bank. The bank assets once expansive-3070 billion, but last September, was acquired by JP Morgan.

The nine latest failures of banks are affiliated to the United States FBOP bank holding company.

FBOP Corporation was established in 1990 to 2007, a total of 28 bank mergers and acquisitions, is the largest private bank holding companies. But lots of bad loans and investment losses led to frustrations with this company. According to the Federal Deposit Insurance Corporation and FBOP Corporation agreement, FBOP Corporation to escape the fate of the closure.

Take over

Federal Deposit Insurance Corporation usually choose Friday closed Bank decided to take advantage of weekend time dealing with the transfer of assets. A day off 9 banks, Federal Deposit Insurance Corporation since the financial crisis has taken since the last event of the greatest action.

Local time 10/30/night around 6: 15 pm, about 100 Federal Deposit Insurance Corporation staff came to Los Angeles California National Bank headquarters building, then the access floor separately offices.

At the same time, California National Bank employees queuing up long team, a face fear, waiting for the Federal Deposit Insurance Corporation to inform their employers of destiny. New employers United States bank note how the company did not accommodate these nine bank employees.

Federal deposit insurance company spokesman Roberta · Valdez said the company's staff also visited California National Bank branches, they will use this weekend to complete the liquidation of the Bank has assets transferred to the United States Bank "," Minneapolis, all 9 failed bank "will be the transition period to continue to operate as usual."

United States bank companies this year have been busy eating into the various "troubled assets". The company's business deputy supervisor Creek · Hart Bennett said, through the takeover of the nine banks, companies in California's business outlets will be doubled, the proportion of the total business outlets will exceed 20%, by then, the company will be in 24 States across the country with nearly 3000 branches.

Debt loan

With the United States economic recession, rising unemployment, housing prices plummeted and loan defaults soar, United States of many small and medium-sized banks were closed down, forcing the Federal Deposit Insurance Corporation had to spend billions of dollars Federal Deposit Insurance Fund, to provide insurance for commercial banks and savings, leading to this Fund in the red.

Federal Deposit Insurance Corporation is expected, the latest of the closure of 9 banks will consume 25 billion Federal Deposit Insurance Fund. This year, the company has spent more than 25 billion Federal Deposit Insurance Fund.

As real estate development projects fail, real estate loan more and more, even those who looked strong developers, since many have built real estate sell out, it will be difficult for him to recover loans in the banks.

Federal Reserve data show that as of September, the National Bank commercial real estate lending totalled 1.7 trillion, representing banks with total assets of approximately 15%.

However, the big banks business diversification affected smaller, many small and medium-sized banks especially small banks fear will become less credit problems biggest victims. As of the end of October, the United States this year, the number of failed bank deposits and loans of up to 1992, the highest level since the crisis. In 1992 there were 120 banks collapse.

Last year across the United States has 25 bank failure, only 3 in 2007. In 1989, deposits and loans crisis, Federal Deposit Insurance Corporation breath close 534 Bank, equivalent to weekly closes 10 banks.

The associated press reported that the financial supervision authorities of foreign bank secrecy "issues" list from the first quarter of this year, 305 home soared to second quarter 416 home, is the highest since 1994. Some financial analysts is expected before the end of the year will have more bank failures.