The Federal Deposit Insurance Corp. and state regulators seized Los Angeles-based Security Pacific Bank late Friday — one of two banks to fail that day and the 19th to fail so far this year.
Pacific Western Bank, also based in Los Angeles, will assume all of the deposits of Security Pacific, the FDIC said in a statement.
Also on Friday, Houston-based Franklin Bank was closed by regulators.
It’s not going to be an easy ride for the Obama administration.
While banks continue to drop like flies, the true unemployment rate — as it was calculated before the Clinton administration factored many so-called “discouraged workers” out of the formula — is now around 16%, insurance giant AIG is negotiating with the government for another bailout, and the big automakers are running out of cash at an alarming rate. GM may be out of money by the end of the year without an infusion of taxpayer funds.
Four years from now, Republicans will be glad that John McCain lost.