In January 2010, Forbes.com reported "America's Best And Worst Banks" ranking the 100 largest banks. This article attracted numerous discussions on bank failures.
In February 2010, the California Department of Financial Institutions closed First Regional Bank, headquartered in Los Angeles, California, and the FDIC was named receiver. As of September 30, 2009, First Regional Bank had approximately $1.87 billion in total deposits and $2.18 billion in total assets. First Regional Bank is the first bank to fail in California following Imperial Capital Bank on December 18, 2009.
The FDIC, as receiver, entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, headquartered in Raleigh, North Carolina, to assume all of the deposits of First Regional Bank. First-Citizens Bank & Trust Company agreed to purchase approximately $2.17 billion of First Regional Bank's assets. First-Citizens Bank & Trust Company did not pay the FDIC any premium for the deposits of First Regional Bank.
The FDIC estimates the cost to the Deposit Insurance Fund to be $825.5 million. The FDIC has been making attempts to address bank failures. The FDIC adopted a final Statement on August 26, 2009 singling out private equity investors as affecting the ability of failing banks to attract capital, avoid taxpayer bailouts and minimize losses to the Deposit Insurance Fund.
To return the economy to prosperity, the country will have to rely on consumers' renewed trust in banks. Engage a bankruptcy attorney that is up on economic news for advice on Chapter 7 or Chapter 13 bankruptcy concerns.
