LOS ANGELES -- United Commercial Bank, which had 13 branches locally in Los Angeles County and three in Orange County, has failed and was seized by government regulators.
The bank's branches will reopen Saturday under the new control of East West Bank.
United Commercial Bank depositors can access their money Friday night and over the weekend by writing checks or using automated teller machine or debit cards, David Barr of the Federal Deposit Insurance Corporation said.
Depositors have no need to worry about their funds; they will automatically become depositors of East West Bank and continue to be insured by the FDIC.
The switch over to East West Bank will not be immediate over the weekend; Barr advises customers to continue using their former United Commercial Bank branch until East West Bank could complete system changes allowing other branches to process the newly acquired accounts.
The failed bank had branches in branches in Alhambra, Arcadia, Artesia, Chinatown, Irvine, Monterey Park, Rosemead, Rowland Heights, San Marino, Temple City, Torrance, Van Nuys and Westminster.
Pasadena-based East West Bank entered into a purchase and assumption agreement with the FDIC, which also included all 63 U.S. branches of United Commercial Bank, its Hong Kong branch and the subsidiary of United Commercial Bank headquartered in Shanghai, China.
San Francisco-based United Commercial Bank's failure will cost the FDIC's Deposit Insurance Fund an estimated $1.4 billion.
East West Bank's acquisition of United Commercial Bank's deposits was the "least costly" resolution for the fund compared to alternative solutions, said Barr.
United Commercial Bank's failure marks the 120th FDIC insured financial institution to fail in the United States this year.
Customers with questions about the bank seizures can call the FDIC's hotline at 1(800) 900-5170.
United Commercial Bank Seized by Government
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