9 FBOP subsidiary banks close

Nine subsidiaries of FBOP Corp., an American multi-state holding company, has succumbed to pressures from the US banking crisis. The failures bring the total number of banks closed by US regulators to 115 this year.

The 9 banks are located in Arizona, California, Texas and Illinois and include Bank USA NA of Phoenix, California National Bank of Los Angeles, and Pacific National bank of San Francisco. Industry insiders say, FBOP accumulated a large amount of bad debts.

The privately-held multi-bank holding company, also had purchased preferred shares from Fannie Mae and Freedie Mac, before the outbreak of the subprime crisis. It has since been unable to cover all its financial losses, and was forced to file bankruptcy for its 9 banks.