CALPIRG Blog

This weekend the number of failed banks nationally for 2009 passed 100.  California is home to 10 of the 105 banks forced to close their doors since January 1st of this year. 

This ominous milestone should serve as a reminder to congress that it is time to stop letting the financial sector write its own rules.  With two months left in the year, and 416 more banks on the FDIC’s watch list, California and the rest of the country most likely have not seen the last “out of business” sign go up. 

The banking industry’s position against reform is weakened with every new bank failure, but they still have ample resources to try and maintain the status quo.  Three major banking associations have spent $8.9 million on more than 140 lobbyists in the first 6 months of this year to defeat reform. And the Chamber of Commerce is spending $2 million on its ad campaign to defeat the Consumer Financial Protection Agency. 

Here is the list of CA banks who will not be able to contribute to the industry’s campaign fund:

- 1st Centennial Bank <http://www.fdic.gov/bank/individual/failed/centennial.html>   Redlands   CA   33025   Closed: 23-Jan-09      

-  Alliance Bank <http://www.fdic.gov/bank/individual/failed/alliance.html>   Culver City   CA   23124   Closed: 6-Feb-09      
  

- County Bank <http://www.fdic.gov/bank/individual/failed/county.html>   Merced   CA   22574   Closed: 6-Feb-09      

-  First Bank of Beverly Hills <http://www.fdic.gov/bank/individual/failed/beverlyhills.html>   Calabasas   CA   32069   Closed: 24-Apr-09      

- MetroPacific Bank <http://www.fdic.gov/bank/individual/failed/metropacific.html>   Irvine   CA   57893   Closed: 26-Jun-09      
  

- Mirae Bank <http://www.fdic.gov/bank/individual/failed/mirae.html>   Los Angeles   CA   57332   Closed: 26-Jun-09      
  

-Vineyard Bank <http://www.fdic.gov/bank/individual/failed/vineyard.html>   Rancho Cucamonga   CA   23556   Closed: 17-Jul-09      

-  Temecula Valley Bank <http://www.fdic.gov/bank/individual/failed/temecula.html>   Temecula   CA   34341   Closed: 17-Jul-09      

-  Affinity Bank <http://www.fdic.gov/bank/individual/failed/affinity-ca.html>   Ventura   CA   27197   Closed: 28-Aug-09      

-  San Joaquin Bank <http://www.fdic.gov/bank/individual/failed/sanjoaquin.html>   Bakersfield   CA   23266   Closed: 16-Oct-09     

From the FDIC “Failed Bank List” http://www.fdic.gov/bank/individual/failed/banklist.html

To avoid another crisis the derivatives shadow markets need to be brought into the light, risk regulation must be more transparent, and the interests of consumers should be represented at least as wells as the banks’.