California National Bank Among Those Seized By FDIC

The nine banks had a total of 153 offices in four states. The California banks that were involved in the seizures were; California National Bank, San Diego National Bank and Pacific National Bank of San Francisco.

Three Texas banks were also seized. They were; Citizens National Bank, Madisonville State Bank and North Houston Bank.

Bank USA N.A. of Phoenix was the only bank in Arizona that was part of the seizure. Illinois banks; Park National Bank and Community Bank of Lemont made up the rest of the list.

These banks are now operated by U.S. Bank. Customers of any of the banks that were seized can continue to use their accounts. They can write checks, use their debt cards and the ATM machines.

All of their deposits up to $250,000 are insured by the FDIC. If a customer owes on a loan to any of these banks, they are still expected to make their payments.

Michael Kelly started FBOP Corp in 1981 with one bank; the First Bank of Oak Park in Illinois. It had grown to the 46th largest bank-holding company in the US through acquisitions.

FBOP owned a large amount of stock in Fannie Mae and Freddie Mack prior to the federal take-over in 2008 of those programs. The treasury did away with all of those stocks and that was the start of the downfall of FBOP.

California National was ranked as the nation's 101st largest bank before the FDIC seizure on Friday. Now it and the other FBOP banks are part of the long list of 115 banks that have been closed in 2009.

Written by Denise Clay
Exclusive to HULIQ