WASHINGTON – The FDIC Friday shut California National Bank of Los Angeles and eight smaller related banks in California, Illinois, Texas and Arizona, making a total of 115 bank failures so far in 2009.
U.S. Bank of Minneapolis agreed to assume the deposits and most of the assets of the banks. The banks had combined assets of $19.4 billion and deposits of $15.4 billion at the end of September, the FDIC said.
The nine banks had 153 offices, which reopened as U.S. Bank branches Saturday.
Besides California National Bank, the banks involved in the latest round were Bank USA, NA, in Phoenix; San Diego National Bank; Pacific National Bank in San Francisco; Park National Bank in Chicago; Community Bank of Lemont in Illinois; North Houston Bank, Madisonville State Bank, and Citizens National Bank in Teague, all in Texas.
U.S. Bank, one of the few healthy big banks, has been buying up assets and branches of failed institutions. Last month it purchased Nevada bank branches and $800 million in deposits from BB&T Corp.
