Dec 19 2009
FDIC and the Bank Failures of First Federal Bank and Imperial Capital in California. Two Banks Brought Down by Option ARMs and Commercial Real Estate.
First Federal Bank of California failed on Friday because of a heavy over indulgence on risky option ARMs. Imperial Capital also failed on the same day because of an inability to raise capital and also mounting losses of commercial real estate loans. These two bank failures, two of the 140 in 2009, show that the [...]