Regulators Close Southern Pacific
E. Scott Reckard
Regulators closed Torrance-based Southern Pacific Bank on Friday, saying Beal Bank of Plano, Texas, will take over its three branches and $834 million in insured deposits.
The state Department of Financial Institutions said Southern Pacific had experienced mounting losses resulting from the economic downturn and loans to telecom firms and airlines.
The failure, which will cost the Bank Insurance Fund $134.5 million, is the first at a Federal Deposit Insurance Corp.-insured institution this year. The last California bank to fail was Monument National Bank of Ridgecrest in June 2000.
