Wow.

I used to bank at Security Pacific when I lived in SoCal.

I banked at Security Pacific too, but it was a long while ago. Seems like every bank I used ended up merging with someone else. Coast Bank became Home Bank which became Washington Mutual which is now JP Morgan. I'm glad I took my money out this summer and put it all in a credit union. I wouldn't trust banks now for anything. This economic collapse is not over yet.

Security Pacific sucked. Glad they're gone.

Why change my original title on this thread? No one in California heard of this Texas mortgage pioneer guy. At least my original title - "Regulators Shut Down Banks in California and Texas" -- covered both Franklin AND Security Pacific banks being shut down by the FDIC.

Another thing -- I thought these sleezy bundled mortgage-backed securities were a new thing on Wall Streeet and when they bundled these securities to also include all the subprime loans that's when Fannie and Freddie and the banks started to collapse. Now I read this guy Ranieri who found Franklin Bank had been doing these mortgage securities for 20 years. Why the collapse now 20 years later?

Why the collapse now 20 years later?

The risk kept getting repackaged, leveraged and sold to someone else.

Like musical chairs, when the music finally stopped (the price of housing stopped climbing while the loans reset and many went bad) whoever was still holding the paper was "out".

"I'm glad I took my money out this summer and put it all in a credit union. I wouldn't trust banks now for anything. This economic collapse is not over yet." #2 | Posted by CalifChris

Um...hate to be the one to break it to you Chris but credit unions are gonna be the next domino to fall. The good news is I'm planning an alligator meat farm out in the desert here in Nevada and I can guarantee you a minimum annual rate of return on your investment of 25%. But you better hurry up the way things are going right now all the shares will be sold by 11/12/08 so wire me su dinero pronto.

"I'm glad I took my money out this summer and put it all in a credit union. I wouldn't trust banks now for anything. This economic collapse is not over yet." #2 | Posted by CalifChris

I'm sure your bank is ready to fold now that you pulled your 23 dollars out.

I used to have a Security Pacific account when I lived in Monterey. I still remember going there to deposit my check, rather than do direct deposit, simply because there was a gorgeous teller who worked there. Of course, she was probably completely unimpressed with my $1585 a month I was putting in.