Guys,

Back to the banks....

The failure of United Commercial in San Fransisco yesterday is smaller than the USB/FBOP deal but not a tiny deal IMHO.

United Commercial had 11.2 billion in assets and 7.5 billion in deposits down from 9 billion and had 63 branches serving mostly the Chinese Americian community.

Actually it is reported to be the 4th largest bank failure this year and the 7th largest since the banking crisis started in 2008.

The acquirer, EWBC, was up 3.1% Friday and closed on the high for the day. EWBC reportedly only paid a 1% "premium" to acquire United Commercial.

The FDIC will take a 1.4 billion hit and have 7.7 billion more exposure under the loss sharing agreement. Additionally the taxpayers are expected to lose the entire 299 million in the TARP preferred investment.


Bushman