Bush:

The reason why these banks and UCBH in particular failed is because of a flawed business model. What these banks did was to make commercial real estate loans and mortgage loans. That was the bulk of their business. Why this concentration? Do they not know about diversification? To be fair, I think because they are small, there are less opportunities in other areas of lending. But the government and regulatory agencies in my opinion also screwed up as they allowed such banks to have such flawed business models and now the FDIC or rather we the taxpayers have to foot the bill.