Volume 12, Issue 12 – June 2009
Message from the Commissioner
The California Department of Financial Institutions (DFI) will recognize its 100-year anniversary from July 1, 2009 to July 1, 2010. The State Banking Department (the Department’s original name) was formed by the 1909 Bank Act which became effective July 1, 1909.
To commemorate our 100th anniversary the DFI has launched a special Web site to provide historical information about the Department, the state charter and California’s financial institutions. We are inviting licensees to send us photographs, data, information and stories for our 100th Anniversary Web Site. You can send items to Alana Golden via e-mail at firstname.lastname@example.org or by regular mail to 1810 13th Street, Sacramento, CA 95811. This website will be maintained until July 1, 2010, so please visit us again soon.
William S. Haraf, Commissioner
Department of Financial Institutions
45 Fremont St., Suite 1700
San Francisco, CA 94105-2219
Liquidation of MetroPacific Bank
On June 26, 2009, the Commissioner of Financial Institutions took possession of MetroPacific Bank and ordered that it be liquidated. The Commissioner then appointed the Federal Deposit Insurance Corporation (“FDIC”) as receiver of MetroPacific Bank, and the FDIC accepted the appointment. On Monday, June 29, 2009, all branches of MetroPacific Bank reopened as branches of Sunwest Bank, Tustin.
Liquidation and Sale of Mirae Bank
On Friday, June 26, 2009, the Commissioner of Financial Institutions took possession of Mirae Bank and ordered that it be liquidated. The Commissioner then appointed the Federal Deposit Insurance Corporation (“FDIC”) as Liquidator, and the FDIC accepted the appointment. The FDIC subsequently sold all deposits and substantially all assets of Mirae Bank to Wilshire State Bank.
Aaron Prosperi Transfers to FIM – Portfolio Manager
Financial Institution Manager (FIM) – Examination Manager Aaron Prosperi has transferred to the position of FIM-Portfolio Manager in the Sacramento office effective June 1, 2009. Aaron is filling the position of, and will be managing the licensee portfolio of Scott Harris, who recently retired.
Aaron started with DFI in August of 2000, and was promoted to Senior Financial Institution Examiner in December of 2004. He has attained the CSBS certifications of COE, CCE, and CEIC and is in his third year at the Graduate School of Banking at Colorado. Aaron has been a valuable member of the team in Sacramento.
Commercial Banks, Foreign Banks and Trust Companies
Assessment invoices were mailed to commercial banks, foreign banks and trust companies on June 30, 2009.
For the purposes of this assessment, the base rate was set at $1.41, unchanged from last year’s rate. Invoices were mailed to each licensee on June 30, 2009 and became delinquent if not paid by July 21, 2009. The statutory maximum rate is $2.20 per thousand dollars of total assets.
The assessment rate for industrial banks this year was set at $0.99 per thousand dollars of total assets, an increase from last year’s rate of $0.85. The statutory maximum rate is $2.20 per thousand dollars of total assets. Invoices were mailed to each licensee on June 30, 2009 and become delinquent if not paid by July 21, 2009. Insurance premium finance companies will be assessed on November 30, 2009.
The 2009-10 assessment rate was set at $0.69 per thousand dollars of total assets, an increase from last year’s rate of $0.59. Invoices were mailed to each licensee on June 30, 2009 and become delinquent if not paid by July 21, 2009. The statutory maximum rate is $2.20 per thousand dollars of total assets.
Issuers of Travelers Checks and Payment Instruments
The 2009-10 assessment rate was set at $0.64 per thousand dollars of total assets, unchanged from the 2008-09 rate. Invoices were mailed to each licensee on June 30, 2009 and become delinquent if not paid by July 21, 2009.
Transmitters of Money Abroad
The 2009-10 assessment rate was set at $0.08 per every thousand dollars in transmission money received by a licensee in calendar year 2008. Invoices were mailed to each licensee on June 30, 2009 and become delinquent if not paid by July 21, 2009. This is the second time that an assessment of money transmitters has been made.
Reduction in Asset Pledge Requirements for Foreign Bank Branches
Effective January 1, 2009, Financial Code Section 1761 was amended to reduce the amount of eligible assets to be pledged by a foreign (other nation) bank operating a branch office in California from 5 percent of the adjusted liabilities of the branch office to 1 percent. The related regulations will be amended by the end of the year to reflect the change in the law. Until that time, the Commissioner has waived that portion of Section 10.16101(b) of Title 10 of the California Code of Regulations that imposes a minimum pledge of 5 percent of the branch office’s adjusted liabilities. That minimum shall be read to reflect the 1 percent minimum pledge amount referred to in Section 1761. In all other respects, the provisions of Section 10.16101 remain effective. Specifically, a foreign (other nation) bank that operates one or more agency offices shall maintain on deposit a minimum of $1,000,000 in eligible assets, and a foreign (other nation) bank that operates one or more branch offices shall maintain on deposit a minimum of $2,000,000 in eligible assets.
Executive Officer and Director Compensation Survey
Forms for the 32nd Annual Executive Officer and Director Compensation Survey as of June 30, 2009 were e-mailed on Friday June 30th. Hard copy forms are in the process of being mailed to the CEOs of all state-chartered banks, industrial banks and national banks headquartered in California as of that date. Recipients are asked to respond by Friday, August 14, 2009 so the results can be compiled into a summary report that will be e-mailed to participating banks in the fall. If you do not receive your forms, please contact Patrick Carroll at (415) 263-8559 or by e-mail at email@example.com
The survey results for the 32nd Annual Executive Officer and Director Compensation Survey as of June 30, 2007 as well as the forms for the 2008 survey that were recently mailed are now available at www.dfi.ca.gov/publications/executive_summaries/default.html
Operation HOPE Global Financial Literacy Summit
The Department of Financial Institutions participated in the first Operation HOPE Global Financial Literacy Summit held in Washington D.C. on June 17, 2009 via Webcast. The Summit discussed the issue of financial literacy as an essential, core ingredient to mid-to-long-term economic recovery and stability.
Operation HOPE is a non-profit, public benefit organization whose mission is to expand economic opportunity in underserved communities through economic education and empowerment.
Federal Reserve Chairman Ben Bernanke was a keynote speaker. “I am pleased to be back at the Town Hall Education, Arts, and Recreation Campus for the Global Financial Literacy Summit. I commend the organizers and participants for their commitment to financial literacy. As Americans struggle with very difficult economic and financial circumstances, the importance of financial literacy and financial education has never been more evident. Organizations such as our host today, Operation HOPE, with its local Hope Centers, provide a vital service by helping adults and young people gain the financial knowledge they need to achieve their economic goals.” … Full transcript is available at http://www.fednews.com/transcript.htm?id=20090617t4992
NCUA Board Member Gigi Hyland participated in a plenary panel session entitled “Financial Literacy and Progressive Public Policy and Regulation”. In her remarks, Hyland detailed the efforts of the NCUA in facilitating credit unions’ use of financial literacy as an important tool in adhering to their social mission. Additional information is available at http://www.ncua.gov/news/press_releases/2009/MA09-0617a.htm.
Other speakers were FDIC Chairman Sheila Bair; Laura Levine, Jump$tart Coalition;Valerie B. Jarrett Senior Advisor and Assistant to the President for Intergovernmental Affairs and Public Liaison, The White House.
Plenary topics included Financial Literacy and Banking the Unbanked; from Third World Poor to First World Under-Served, Financial Literacy and Making Lending Work, Financial Literacy and the Education System, Financial Literacy Empowerment, and Financial Literacy and Progressive Public Policy. For additional information, visit http://summit09.operationhope.org/
DFI Supports Census 2010 Outreach Effort
California Census is sponsoring regional convenings that are designed to bring community based organizations, business, and individuals together to maximize the number of Californians counted in the 2010 Census. The US Census Bureau will be present at each of these convenings. For dates and locations of upcoming regional conventions, please go to http://www.cce.csus.edu/conferences/census/genInfo.htm
The Department of Financial Institutions (DFI) supports this effort to count all Californians and encourages licensees and their customers to take part. To find out more about how your institution can become part of the team, go to http://www.cce.csus.edu/conferences/census/agenda.htm
The 2010 Census also has a Partner Support Program (PSP). Formerly known as the In-Kind Program in Census 2000, PSP supports the outreach efforts of partner organizations. The purpose of this program is to better reach hard-to-count populations by establishing relationships with 2010 partner organizations. For more information, please visit http://www.dfi.ca.gov/notices/default.asp
Commercial Bank Activity
Pacific Commonwealth Bank
Correspondent: James H. Avery
The Avery Company LLC
P.O. Box 3009
San Luis Obispo, CA 93403
Change of Name
Atlantic Pacific Bank, to change its name to AltaPacific Bank
Premium Finance Company Activity
New Premium Finance Company
Global Premium Finance West, Inc.
818 West Seventh Street, City and County of Los Angeles
Acquisition of Control
Estate of Carl Seaman / Linda Seaman, to acquire control of E.T.I. Financial Corporation
Credit Union Activity
Field of Membership
One credit union received approval to add one new field of membership during May 2009.
One credit union received approval for one bylaw amendment during April 2009.
Alisos Credit Union, Norwalk, to merge with and into Camino Federal Credit Union, Montebello
Cityside Federal Credit Union, Los Angeles, to merge with and into Southland Credit Union, Los Angeles
Community Trust Credit Union, Modesto, California to merge with and into Self-Help Federal Credit Union, Durham, North Carolina
E1 Financial Credit Union, Monterey Park, to merge with and into NuVision Financial Federal Credit Union, Huntington Beach
Steinbeck Credit Union, Salinas, to merge with and into Golden 1 Credit Union, Sacramento
U.S. First Credit Union, San Mateo, to merge with and into Golden 1 Credit Union, Sacramento
Foreign (Other Nation) Bank Activity
Canadian Imperial Bank of Commerce
6080 Center Drive, City and County of Los Angeles (Downgrade from Nondepositary Agency to Representative Office)
Voluntary Surrender of License
KBC Bank NV
515 South Figueroa Street, City and County of Los Angeles (Representative Office)
Transmitter of Money Abroad Activity
Hong Lan Services, Inc.
Payment Instrument Activity
New Payment Instrument
Order Express, Inc.
WILLIAM S. HARAF
Commissioner of Financial Institutions
Bulletin for Month ended
June 2009, issued pursuant
to Financial Code section 258