The Federal Deposit Insurance Corporation and state regulators closed another bank. Washington First International Bank, Seattle, was closed by the Washington Department of Financial Institutions, which appointed the FDIC as receiver. The brings to 82 the number of U.S. bank failures this year. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Pasadena, Calif.-based East West Bank to take all of the deposits of Washington First International Bank.
The FDIC added that "the four branches of Washington First International Bank will reopen during normal business hours beginning Saturday as branches of East West Bank.Depositors of Washington First International Bank will automatically become depositors of East West Bank."
The FDIC estimated that the cost to the Deposit Insurance Fund will be $158.4 million. East West Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives.
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