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California National Bank a Los Angeles based bank seized by Regulators

Friday night regulators seized a Los Angeles based bank, California National. No fanfare, almost hidden in the Halloween revelry. I am outraged it is not front page news. This bank is the fourth-largest bank failure this year and no one is talking about it.

As soon as the regulators seized it, they sold it immediately to US Bancorp a Minneapolis based bank. How could this happen? All the tax payer money could not save this bank? I am outraged, where are the politicians? Where are the banking regulators?

California National Bank with $7.8 billion in assets and $6.2 billion in deposits, again how could this be allowed?

Well the answer is attributed to losses on securities issued by the giant mortgage companies Fannie Mae and Freddie Mac. As you might recall the government takeover made Fannie Mae and Freddie Mac stocks worthless. California National had $855 million in preferred shares of Fannie Mae and Freddie Mac stocks. California National bank had been working on trying to obtain money from the Treasury Department's $700-billion financial bailout fund, but at the end of the day the Treasury Department did not come thru. How ironic is that? I look forward to your views on this subject.

If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at EndreBarath@TheMLS.Com or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of My commission to Local Animal Rescue Organizations.

Posted by Endre Barath,Jr. on 11/01/2009 01:02 AM

Comments (8)

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8 Comments on California National Bank a Los Angeles based bank seized by Regulators

NOV

Ouch, another big bank failure. Fannie and Freddie huh; apparently nothing is sacred. I'm not for bank bailouts, but if I were an investor I guess I might be.

By national standards, $7-8Billion is not large.

The government has decided to give our tax money to the large mega banks.

There's no money left.

Well this bank does not have 8 children and is not flying on the balloon.

NOV

Gregg, the sad part is eight smaller banks were also taken over by the regulators and it include San Diego national Bank with 28 offices and San Fancisco's Pacific national Bank which has 17 offices. The results will be detremental not just for investors, also for the current employees, because you know take overs follow consolidation of jobs etc.

Lenn, California National last fall tried to get money from the Treasury Department's $700-billion financial bailout moneys, but they the Federal Government changed the 'Program' hence California National became in eligible..... What is even more sad is that they tried to get $750 million from private investors, but the offer was not acceptable to the regulators prior to Friday's deadline. Seems to me the Regulators made their minds up rather then work with the Bank.

Haris, year to date there are 106 banks that failed, I am sure many of these banks have lost numerous empoyees because of this...hence many buyers are still cautious about getting off the fence because of events like this.

NOV

Our San Diego National Bank failed, too, not that I did business there, but nonetheless. Unfortunately, all that is happening is that the banks that were too big to fail are getting even bigger.

Happy Thanksgiving from our house to yours!

NOV

Russel that also leads to things like Citi Bank announced unless you have $6000 in your account they will charge monthly fees to the tune of $12 per month and checks per usage. The fewer the competition the more rampant the charges. Just like the government announced next year they will regulate banks. So they are slipping in the junk fees now....Anyway happy Thanksgiving to you to.

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