California National Bank also known as Cal National Bank, was an American consumer and business

bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

that operated in

Southern California Southern California (commonly shortened to SoCal) is a geographic and Cultural area, cultural List of regions of California, region that generally comprises the southern portion of the U.S. state of California. Its densely populated coastal reg ...

area between 1996 and 2009. The bank was closed by the

Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (OCC) is an independent bureau within the United States Department of the Treasury that was established by the National Currency Act of 1863 and serves to corporate charter, charter, bank regulation ...

after financial issues caused by the

subprime mortgage crisis The American subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010, contributing to the 2008 financial crisis. It led to a severe economic recession, with millions becoming unemployed and many busines ...

of 2008.

Overview

Cal National Bank originally began in 1996 when FBOP Corporation acquired Torrance Bank. Two years later, FBOP acquired five branches of Topa Savings and Topa Thrift, establishing California National Bank. As Cal National started growing, it acquired People’s Bank of California in 2001 and Fidelity Federal Bank in 2002. By 2009, Cal National had grown to 68 branches throughout Southern California.

Bank failure

On Friday, October 30, 2009, California National Bank was closed by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. All deposits and branches were transferred to

U.S. Bank U.S. Bancorp (stylized as us bancorp) is an American multinational financial services firm headquartered in Minneapolis, Minneapolis, Minnesota and incorporated in Delaware. It is the List of largest banks in the United States, 5th-largest ban ...

. Because of the

, Cal National suffered massive losses on $855 million worth of securities issued by

Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the New ...

and

Freddie Mac The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is an American publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons, Virginia.List of largest U.S. bank failures Since the 1970s, over 90 banks in the United States with billion or more in assets have failed. The list below is based on assets at the time of failure of banks insured by the Federal Deposit Insurance Corporation. https://archive.fdi ...

References

External links

* {{U.S. Bancorp Banks based in California Defunct companies based in Greater Los Angeles Banks established in 1996 Bank failures in the United States Banks disestablished in 2009 U.S. Bancorp Defunct banks of the United States