US Bank, of Minneapolis, mi Assumes All of the Deposits of Nine Failed Banks in az,ca, il,and tx

The Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement with U.S. Bank, NA, of Minneapolis, Minnesota, a wholly-owned subsidiary of U.S. Bancorp, to assume all of the deposits and essentially all of the assets of nine failed banks. The nine banks were closed this evening by federal and state bank regulators, which appointed the FDIC as receiver.

The nine banks involved in today's transaction are: Bank USA, National Association, Phoenix, Arizona; California National Bank, Los Angeles, California; San Diego National Bank, San Diego, California; Pacific National Bank, San Francisco, California; Park National Bank, Chicago, Illinois; Community Bank of Lemont, Lemont, Illinois; North Houston Bank, Houston, Texas; Madisonville State Bank, Madisonville, Texas; and Citizens National Bank, Teague, Texas. As of September 30, 2009, the banks had combined assets of $19.4 billion and deposits of $15.4 billion.

oops should read:

My company moved to U.S. Bancorp after CEO Richard Davis sold me on his bank earlier this year.

U.S. Bank CEO: TARP program is ‘lousy’
While government leaders were well-intentioned in setting up the Troubled Asset Relief Program, it’s a “lousy program,” U.S. Bancorp CEO Richard Davis said at a business leaders forum Tuesday.
U.S. Bank was told, not asked, to participate in the program, which is a Darwinian attempt to “synthesize” weaker banks into stronger banks through consolidation, Davis said at the forum, held at Thrivent Financial for Lutherans in Minneapolis. U.S. Bank (NYSE: USB) sold $6.6 billion in preferred stock with warrants to the U.S. Treasury in November through its capital purchase program.
“There’s no A, R or P in TARP,” Davis said, adding that “troubled” is the only word in the phrase that’s accurate. “The ‘asset relief program’ has yet to occur.”
The problems with the U.S. Treasury Department’s program are that its goals and rules have changed since its inception last fall, it’s poorly defined and it’s caused collateral damage to healthy banks.
Davis said he would be “darned” if Minneapolis-based U.S. Bank would suffer collateral damage from the government’s “sloppy attempt at nationalizing the [banking] industry.”
U.S. Bank, which has $247 billion in assets, was the sixth-largest commercial bank in the country as of the end of the third quarter of 2008. It has more than 2,500 banking offices in 24 states.
U.S. Bank is Oregon’s largest bank, with 186 branches and more than 4,700 employees statewide. U.S. Bank has 103 branches and 3,925 employees in the Portland metropolitan area.

No. These failed banks were not part of US Bank. The FDIC closed them and basically brokered the remnants to US Bank. Since the failed bank holding company was probably underwater (not just below reserve requirements, but probably at the moment of takeover, insolvent in conventional terms) the FDIC may have made payments to US Bank in order to induce the deal or US Bank may have bought the assets and only some portion of the liabilities. But the fact that US Bank made such a maneuver is probably an endorsement - since the FDIC could steer the remnants anywhere, they would certainly choose some entity that can manage the business properly.

No, essentially US Bank is buying up whatever is left of value from an FDIC closure, from the FDIC. Even in a year where there were no wide, systemic issues in banking, under-capitalized banks will make a few dumb loans and get seized, and strong banks, like US Bank, swoop in and grab the leftovers. That’s all this is, really. US Bank is quite healthy, has been run well, and these assets are likely profitable.

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