Sale of Western Bancorp Gains Approval

The proposed $1-billion acquisition of Newport Beach-based Western Bancorp by Minneapolis-based U.S. Bancorp has been approved by federal banking regulators, despite the objections by California consumer groups who complained that U.S. Bancorp is avoiding low-income and minority neighborhoods, a U.S. Bancorp spokeswoman said Tuesday.

The approval by the U.S. Comptroller of the Currency clears the way for the acquisition to close by the end of the month, said Marika Crownen-Rose, a bank spokeswoman.

The California Reinvestment Committee, a coalition of community development organizations, had hoped to convince the comptroller to require U.S. Bancorp to open new branches in low-income neighborhoods as a condition of the merger. The group claims that U.S. Bancorp is only buying California banks that operate in affluent areas. But Rose said there were no conditions as part of the approval. Officials at the comptroller’s office could not be reached for comment.

Meanwhile, California Reinvestment Committee will turn today to the Los Angeles City Council, hoping to convince the city to formally oppose the deal. Though the city has no authority to stop the deal, it does conduct substantial investment business with U.S. Bancorp.

Rose said U.S. Bancorp would meet with city officials to address their concerns. The bank says it plans to invest $2 billion in California over the next three years, including opening branches in low-income neighborhoods.