Could FDIC be delaying its take over of First Vietnamese American Bank (FVAB) in Westminster, California due to the local Vietnamese candidate running for congress?

In the last few years FDIC has taken over many banks with stronger balance sheets than First Vietnamese American Bank (FVAB) in Westminster, California. FVAB reported a loss of $1.951 million in the quarter ending 09/30/2010. This left the bank with $611K in Tier 1 capital; a 1.15% Tier 1 leverage ratio and a 1.57% Tier 1 risk-based capital ratio.

The race in the 47th district in California which includes Westminster, where the bank is located, is super heated. The Republican candidate is Van Tran, a Vietnamese conservative backed by the Tea Party serving in the California state assembly. The Democrat is Loretta Sanchez, Incumbent Democratic Congresswoman for California's 47th District.

According to Southern California Public Radio, the demographics of the heavily Hispanic district are changing rapidly with a growing 15% of voters identifying as Vietnamese – a fact that Tran hopes to turn to his advantage. With no clear partisan voting record this district could go either way in next week’s election.

Could FDIC be delaying its take over of First Vietnamese American Bank (FVAB) in Westminster, California due to the local Vietnamese candidate running for congress?

First Vietnamese American Bank in Westminster set new loss record!

According to FDIC https://cdr.ffiec.gov/Public/ViewFacsimileDirect.aspx?ds=call&idType=fdiccert&id=57885&date=09302010  First Vietnamese American Bank (FVAB) in Westminster, California lost a record $1.951 million. This left FVAB with $611K in Tier 1 capital; a 1.15% Tier 1 leverage ratio and a 1.57% Tier 1 risk-based capital ratio.

FDIC declares First Vietnamese American Bank (FVAB) "critically undercapitalized" and ordered to sell shares or agree to a buyout

According to the Orange County Register the Federal Deposit Insurance Corp. has declared Westminster-based First Vietnamese American Bank "critically undercapitalized."

The FDIC ordered the bank to sell shares or agree to a buyout by another bank. The order, dated Sept. 28, was disclosed by the FDIC.

The FDIC order also directed the bank not to accept or renew any "brokered deposits" -- typically large deposits that move to whatever bank pays the highest interest -- and to pay no bonuses or raises to officers and directors without the government's permission. You can read the order http://www.fdic.gov/bank/individual/enforcement/2010-09-69.pdf