Bank Reopens

This episode should repeat itself many times over the coming months as the financial crisis works its way through the economy.

(CNS)- All four Security Pacific Bank branches in Los Angeles reopened today as branches of Pacific Western Bank under an acquisition engineered by federal officials after Security Pacific was declared to be perilously undercapitalized, officials said. The Federal Deposit Insurance Corp. was named the receiver of Security Pacific Friday after its closure by the California Department of Financial Institutions.

The FDIC then announced it had entered into a purchase and assumption agreement with Pacific Western Bank of Los Angeles to assume all deposits of Security Pacific.
In a statement this morning, PacWest Bancorp, parent of Pacific Western Bank, said its subsidiary "has opened the four former Security Pacific Bank branches in Southern California as Pacific Western Bank branches."

Customers of the failed bank will automatically become depositors of Pacific Western, and their money will continue to be insured by the FDIC.

"All branches of Security Pacific Bank will reopen on Monday with no disruption in service," according to an earlier California Department of Financial Institutions statement.