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Friday, June 26, 2009

Bank Failure #45: Mirae Bank, California Fails

by Calculated Risk on 6/26/2009 09:49:00 PM

Today Mirae fell,
A mirage of asset wealth
We now know the truth.

by Soylent Green is People

Update: From the FDIC:
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $50 million. Wilshire State Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Mirae Bank is the 45th FDIC-insured institution to fail in the nation this year, and the sixth in California.
Press Release from the California Department of Financial Institutions (DFI)
The California Department of Financial Institutions (DFI) announced today that regulators have closed Mirae Bank, citing inadequate capital.

As of June 15, 2009, Mirae Bank, located in Southern California, had total assets of approximately $411.1 million and total deposits of approximately $338.5 million. The DFI has been closely monitoring the bank because of its inadequate capital level. The DFI had ordered it to increase its capital reserves to a safe and sound level but efforts by the bank to do so were unsuccessful.

Immediately following the closure, the DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Mirae Bank. The depositors of Mirae Bank are protected by the FDIC. The FDIC has accepted a bid from Wilshire State Bank to assume all branch deposits and significantly all the assets of Mirae Bank.
No announcement from FDIC yet.