Thursday, August 07, 2008

LA Times: Vineyard National Bank Ordered to Stop Accepting Brokered Deposits

by Bill McBride on 8/07/2008 04:01:00 PM

From the LA Times: Regulators try to stabilize Vineyard National Bank

[F]ederal regulators have ordered Vineyard National Bank of Corona to stop accepting so-called hot-money deposits ...

Vineyard has nearly $2 billion in deposits, with branches in Orange, Los Angeles, Marin, Riverside, San Bernardino and San Diego counties. ... Vineyard had nearly $2 billion in loans as of June 30, of which 48% were to home builders and developers.

In its filing with regulators Monday, Vineyard estimated that about $660 million of its nearly $2 billion in deposits are above those standard insured limits.
The amount of uninsured deposits is pretty amazing - and I'd expect some withdrawals after this story in the LA Times.

Not to suggest Vineyard will fail, but IndyMac disclosed they were ordered to stop accepting brokered deposits on July 7th, and IndyMac was closed by the FDIC on July 11th.