The California Department of Financial Protection and Innovation (DFPI) seized Nano Banc and appointed the Federal Deposit Insurance Corporation (FDIC) as a receiver.
© Shutterstock
The moves come after Irvine, Calif.-based Nano Banc failed to comply with DFPI’s latest enforcement order related to its deteriorating financial condition. It also follows a multi-year pattern of executive mismanagement and regulatory violations. In seizing the bank, DFPI said it is taking action to protect consumers and preserve confidence in the banking system.
Nano Banc commenced operations in 2018, when Nano Financial Holdings acquired Commerce Bank of Temecula Valley. Starting in 2020, DFPI discovered significant risk management weaknesses and violations of law, including repeated unauthorized changes to the board and C-suite and executive self-dealing resulting in financial deterioration.
DFPI has taken numerous enforcement actions relating to Nano Banc. It acted against two former executives and prohibited their future involvement with the bank. DPFI also issued an order requiring Nano Banc to give advance notice before appointing, electing, or adding any new individuals to the Board and executive management…