July 27, 2010
FDIC OIG - Material Loss Review of United Commercial Bank, San Francisco, California
"On November 6, 2009, the California Department of Financial Institutions (CDFI) closed United Commercial Bank (UCB), San Francisco, California, and named the FDIC as receiver. On January 20, 2010, the FDIC notified the Office of the Inspector General (OIG) that UCBís total assets at closing were $10.9 billion and the estimated loss to the Deposit Insurance Fund (DIF) was $1.4 billion. As of June 25, 2010, the estimated loss to the DIF had increased to $1.5 billion...The primary reason for UCBís failure was inadequate oversight by the Board of Directors (Board) and management. In particular, UCBís Board and management failed to control the risks associated with the institutionís rapid expansion, which began in 2002. Further, management controls were insufficient to prevent the occurrence of inaccuracies, omissions, and misrepresentations that affected key UCB financial data."
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