California seized 3 branches of a Canadian bank.
The state Banking Department took possession of three offices of Canadian Commercial Bank, which is being liquidated by Canadian banking authorities. The bank’s representative offices are in Santa Ana, Century City and San Francisco. State banking officials said the action was taken to protect California creditors. Separately, Canada’s Inspector General of Banks said that about a third of the outstanding loans of the bank were troubled or unlikely to be repaid but did not reveal the size of the bank’s loan portfolio. The institution is the first Canadian bank to be declared insolvent since 1923.