UCBH's Failure Shaping Up as TARP Loss

Seven hundred twenty nine companies still have money under the TARP, according to ProPublica . Those companies include Citigroup (C), Wells Fargo (WFC), Bank of America (BAC) and AIG (AIG), but not the 44 companies that have refunded the Treasury, such as Goldman Sachs (GS) and JPMorgan Chase (JPM).

San Francisco-based United Commercial Bank, the main banking unit of UCBH Holdings, was acquired by East West Bancorp(EWBC) in an FDIC-assisted transaction this past Friday. As of Oct. 23, United Commercial Bank had total assets of $11.2 billion and total deposits of roughly $7.5 billion, according to a press release from the FDIC. East West Bancorp paid the FDIC a premium of 1.1% for the right to assume the deposits, which works out to $82.5 million. Additionally, East West agreed to buy $10.2 billion worth of the failed bank's assets, and it and the FDIC entered a loss-share transaction covering $7.7 billion worth of the assets.

--Written by Dan Freed in New York.

>To order reprints of this article, click here: Reprints