PacWest Receives Regulatory Approval to Buy CapitalSource

By Sarah Todd April 01, 2014, 6:45 p.m. EDT 1 Min Read

M&A

PacWest, CapitalSource Merger Delayed, Still Needs Fed Approval

PacWest Bancorp's pending purchase of CapitalSource has been pushed back as the deal awaits approval from the Federal Reserve Board.

By Sarah Todd

March 25
Consumer banking

Community Activists Seek Delay of PacWest-CapitalSource Deal

Community organizations in California are urging regulators to postpone approval of PacWest Bancorp's (PACW) acquisition of CapitalSource (CSE), arguing that PacWest lacks CapitalSource's commitment to serving community needs and economically disadvantaged groups.

By Sarah Todd

October 4
M&A

CapitalSource Gets Its Wish in Sale to PacWest

PacWest has agreed to buy CapitalSource for $2.3 billion, a transaction that would fulfill CapitalSource's longtime goal of becoming a full-fledged bank. It is the year's biggest bank deal.

By Robert Barba

July 22

PacWest Bancorp's purchase of CapitalSource has received regulators' official green light.

The Los Angeles companies said Tuesday that the Federal Reserve Board has approved the $2.3 billion deal. The Fed was the final regulator the companies needed to authorize the merger, which had already received the go-ahead from the Federal Deposit Insurance Corp. and the California Department of Business Oversight.

PacWest (PACW) and CapitalSource (CSE) plan to complete the deal on April 7. The merger was originally expected to close on April 1 but was delayed while the companies awaited the Fed's approval.

PacWest is buying 21 CapitalSource branches in the deal, 12 of which are being closed on April 11 as part of the consolidation, along with a branch owned by PacWest. The remaining CapitalSource branches will reopen as part of Pacific Western Bank on April 14.

Deputy Editor, BankThink

For reprint and licensing requests for this article, click here.

Community banking

TRENDING

Payments

Bread Financial 'feverishly' preps for CFPB late-fee rule scenarios

Consumer spending slowed and charge-offs rose during the first quarter, but Bread Financial said a pending late-fee rule may not be as devastating to its revenue as the Columbus, Ohio-based firm initially feared.

By Kate Fitzgerald

34m ago
Artificial intelligence

Banks don't talk about the energy AI guzzles. Here's why they should.

Artificial intelligence models are energy hogs. Climate First Bank and UBS are among the very few trying to solve this problem.

By Penny Crosman

48m ago
Regulation and compliance

FDIC board debates, then withdraws asset manager control proposals

The FDIC board debated and ultimately withdrew two separate proposals to address asset managers' control over banks, but acting Comptroller of the Currency Michael Hsu said he couldn't support either and called for more research and debate about how asset managers' control over banks impacts safety and soundness.

By Ebrima Santos Sanneh

2h ago

MORE FROM AMERICAN BANKER

Payments

Bread Financial 'feverishly' preps for CFPB late-fee rule scenarios

Consumer spending slowed and charge-offs rose during the first quarter, but Bread Financial said a pending late-fee rule may not be as devastating to its revenue as the Columbus, Ohio-based firm initially feared.

By Kate Fitzgerald

34m ago
Artificial intelligence

Banks don't talk about the energy AI guzzles. Here's why they should.

Artificial intelligence models are energy hogs. Climate First Bank and UBS are among the very few trying to solve this problem.

By Penny Crosman

48m ago
Regulation and compliance

FDIC board debates, then withdraws asset manager control proposals

The FDIC board debated and ultimately withdrew two separate proposals to address asset managers' control over banks, but acting Comptroller of the Currency Michael Hsu said he couldn't support either and called for more research and debate about how asset managers' control over banks impacts safety and soundness.

By Ebrima Santos Sanneh

2h ago
Regulation and compliance

Why Texas has its own account with the Federal Reserve

The state's comptroller of public accounts is one of several notable non-depositories with access to the Fed's payments system, along with the Chicago Mercantile Exchange and the Tennessee Valley Authority. So why do they have accounts while some neobanks don't?

By Kyle Campbell

2h ago
Originations

Mortgage rates rise on weak economic news

Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.

By Brad Finkelstein

2h ago
Fraud

Mortgage fraud attempts surge by more than one-third

While home lenders are seeing a decrease in issues coming through mobile channels, phone fraud spiked last year, accounting for 28% of losses, a new report found.

By Spencer Lee

5h ago