George S. May Business Blog

Regulators seize nine U.S. banks

Banking regulators seized another nine related community lenders over the weekend. The banks were in California, Illinois, Arizona and Texas and represented, essentially, all of the holdings of FBOP Corp.

FBOP, according to WSJ, was “owned by a banker who had plowed into real-estate lending around the country”.

U.S. Bancorp, the large Minneapolis-based regional bank, agreed to assume essentially all of the nine banks’ combined assets of $19.4 billion and deposits of $15.4 billion. The FDIC said the failure is expected to cost the agency’s deposit-insurance fund $2.5 billion.

The latest seizures raise the total number of failed banks this year to 115. It is the most failures since 1992, when 181 banks collapsed during the savings-and-loan crisis. Regulators have seized 140 banks since 2008.

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