First California Financial Group (FCAL)

[Enterprising Investor]

Opinion? No. Facts. Yes!

Most banks are part of a Bank Holding Company.

A BHC controls one or more banks, but does not necessarily engage in banking itself. When the FDIC shows up (usually on a Friday), it takes control of the banks. It then sells them to the highest bidder in an effort to minimize the loss to the insurance fund. The buyer may only purchase deposits or all banking assets. It is not buying the BHC.

BHCs normally file for bankruptcy quickly since the major source of revenue source is gone and few assets remain to pay off liabilities. However, this is not always the case (see UWBKQ).

SNLS would represent the BHC. The bank branches have been owned by FCAL for some time now.