KESQ.COM News Services

LOS ANGELES - California National Bank's 68 branches will be reflagged as U.S. Bank today, after regulators seized the commercial bank along with eight smaller banks owned by privately held Oak Park, Ill.-based FBOP Corp.

California National, with most branches in Los Angeles and Orange counties, ranked as Los Angeles County's fourth biggest bank, with $7.8 billion in assets and $6.2 billion in deposits, the Los Angeles Times reported.

San Diego National Bank, with 28 branches and also owned by FBOP, was also seized, and its branches will be absorbed by U.S. Bank and the FDIC in a loss-sharing deal.

The failure is being blamed on deep losses in mortgage securities issued by Fannie Mae and Freddie Mac, as well as investments in the two firms. The government took both under conservatorship in September 2008.

Depositors will automatically become depositors of U.S. Bank and continue to be insured by the Federal Deposit Insurance Corp.

Customers with questions about the closure can call the FDIC at (800) 913-5861 between 9 a.m. and 6 p.m. Saturday, noon to 6 p.m. Sunday and 8 a.m. to 8 p.m. weekdays.

California National Bank was among nine banks that were subsidiaries of FBOB Corp. that were closed by the FDIC Friday. FBOB Corp. was not closed and was not subject to today's actions.