Complaint Review: Union Bank Mitsubishi Bank - Los Angeles California
Mitsubishi Union Bank TARP-1 Bail-out of Santa Barbara Bank & Trust Los Angeles California
*Consumer Comment: Not An Insider - Just an Expert
*Consumer Comment: Many were harmed
*Consumer Comment: Jim does not understand criminal banks..?
*Consumer Comment: Plenty were harmed
*Consumer Comment: Not Sure I Understand...
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Santa Barbara Bank & Trust AKA Pacific Capital BankCorp was a controversial bank troubled by bad loans, debt, and the RAL scandal, wound up in 2012.
In 2008, seriously troubled Santa Barbara Bank & Trust / Pacific Capital Bancorp took $180 million in TARP-1 funds from the federal bank bail-out program, and struggled to remain afloat with very high leverage ratios, and continuing investigations into operations by the OCC, under an MoU which began in 2004.
By 2009, federal investigators had shut down SBBT's Refund Anticipation Loan "product", for fraud and abuse; and in March, 2009 the bank announced plans to lay-off at least twenty-two percent of its workforce.
In 2010, billionaire Gerald Ford "invested" $500 million to guarantee Pacific Capital's capital reserves upon condition that the US Treasury would accept a fractional TARP-1 payback from the bank. Ford has a history of buying and selling banks for profit, with Golden State Bancorp and then bailed-out Pacific Capital Bancorp, being most notable wins.
Then on December 1st, 2012, Union Bank (owned by The Bank of Tokyo-Mitsubishi UFJ) announced their takeover of PCB. Ford profited mightily via the $1.5 Bn USD buyout by Mitsubishi-Union Bank.
Under the direction of SBBT's George Leis, four hundred and sixty-eight SBBT/PCB employees were fired, to help pay back $60 M USD in TARP-1 bail-out funds to the federal government.
From 2010 George Leis was paid in excess of $1 Mn annually and his "golden handhake" on the merger was reported to be in excess of $1 million. In 2012, George Leis mailed a letter to account holders - and those with outstanding loans/debts - to either payoff their loans and close their accounts, or otherwise be warned that debit accounts were subject to transfer to Union-Mitsubishi. At this time interest rates and terms were not "renogotiated" with Mitsubishi, but simply stipulated by Leis's bankrupt bank. (As of 2016 Leis is now president of Montecito Bank & Trust.)
Subsequent to the merger, all PCB/SBBT account holders (in debit or not) effectively had their accounts terminated and closed, with the expiry of Santa Barbara Bank & Trust. Any new terms or demands from Union Bank to SBBT commercial account holders lacked standing based on the federal bail-out, jurisdiction, and the failure of Union-Mitsubishi to negotiate new terms.
Thus, Union Bank aggressively and in bad faith pursued and harassed former account holders with regard to SBBT closed accounts, with damage to former SBBT account holders credit rating. On November 14, 2012 the Federal Reserve released its report on the merger which, as expected, welcomed a foreign capital buyout of the essentially bankrupt Pacific Capital Bancorp. Likewise, of course, merger impact to shareholders, account holders, and debtors to the bank - as well as the massive PCB employee layoffs - will forever be unaddressed by the Federal Reserve as serious issues.
Various class action lawsuits were undertaken to oppose the PCB / UnionBanCal merger, all of which failed; and the PCB court settlement with class members has remained sealed since 2012.
The author relates all of the above as a matter of history and also as a matter indicative of the larger issue of theft, corruption, collusion now inherent to the system.
This report was posted on Ripoff Report on 10/20/2017 11:01 AM and is a permanent record located here: https://www.ripoffreport.com/reports/union-bank-mitsubishi-bank/los-angeles-california-90071/mitsubishi-union-bank-tarp-1-bail-out-of-santa-barbara-bank-trust-los-angeles-californ-1407542. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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