Federal regulators have ordered southern California-based Vineland National Bank of Corona to not accept any new brokered deposits, which are large amounts of money seeking high yield CD gains bundled by a broker from multiple sources.
After the announcement by the Feds, it’s a given such deposits are now fleeing Vineyard at warp factor 9 speed, which will only weaken them more.
You already figured out they made huge amounts of bad loans to real estate developers, right?
I’ll be checking the FDIC Failed Bank list after close of market tomorrow to see if they dodged the bullet or not. (The FDIC takes over failed banks on Fridays and announces after close of market.)
The regulators’ conditions also include a requirement to find “experienced and competent individuals” as chief executive and chief credit officer. Vineyard fired its CEO in January.
Ouch.