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Monthly Bulletin

California Department of Business Oversight

Volume 5, Number 04
November 2017

The DBO Urges Licensees to Grant Appropriate Latitude to Customers Affected by Recent Wildfires

 Commissioner of Business Oversight Jan Lynn Owen urges DBO licensees to grant appropriate latitude to customers affected by the recent California wildfires. Because of the widespread damage and impact it will have on local economies, the Commissioner encourages financial institutions to help customers deal with the economic hardships caused by this disaster.

Governor Edmund G. Brown Jr. issued emergency proclamations on October 9th and 10th due to the effects of the wildfires that killed more than 40 people and destroyed thousands of homes.

Commissioner Owen, pursuant to authority under the Bank Extraordinary Situation Closing Act, determined that an extraordinary situation exists in the counties of Butte, Lake, Mendocino, Napa, Nevada, Orange, Solano, Sonoma and Yuba and issued proclamations authorizing state-chartered banks to close any or all of their offices in affected areas until the Commissioner determines the extraordinary condition has ended.

The DBO will continue to monitor the situation closely and report back to our licensees.

 

Aaron Prosperi Promoted to Deputy Commissioner for DBO Banking Program

Aaron Prosperi has been chosen as the new Deputy Commissioner for the DBO Banking program. In his new role, Aaron is responsible for the overall administration and supervision of banking program licensees and examination staff in California.

Aaron joined the DBO in 2000 as a Financial Institutions Examiner in the Sacramento Regional Office and was promoted to Senior Financial Institutions Examiner in 2004. In 2008, he was promoted to Financial Institutions Supervisor and a year later became an Assistant Deputy Commissioner. In 2015, he was named the Regional Deputy Commissioner for Northern California.

Aaron graduated from California State University, Sacramento, with a degree in accounting. He also holds a certificate with honors from the University of Colorado’s Graduate School of Banking. .

 

Banking Deputy Commissioner Debie Abella Retires

Banking Deputy Commissioner Debie Abella retired on November 1, 2017, after a distinguished 34-year career.

“I have known Debie since 1996,” Commissioner Owen said. “It truly was my honor to promote her to Deputy Commissioner. She performed that job with distinction, humor and commitment. We will miss her.”

Debie joined the California State Banking Department (now part of the DBO) in 1983 as a Bank Examiner in the San Francisco Regional Office. She was promoted to Senior Examiner in 1992, Financial Institutions Manager in 1999, Northern California Regional Deputy Commissioner in 2010, and Banking Deputy Commissioner in 2015.

 

Commissioner Testifies on Impacts of Equifax Data Breach

Commissioner Owen recently testified before a joint hearing of three Assembly committees that are considering a state response to the massive Equifax data breach.

Equifax disclosed the breach on September 7, but the credit monitoring company had discovered it more than a month earlier, after hackers had spent more than two months with access to the personal information of more than 145 million Americans, including 15 million Californians.

Commissioner Owen told the Banking and Finance Committee, Privacy and Consumer Protection Committee, and Select Committee on Cybersecurity that the DBO promptly issued a consumer alert to inform consumers of strategies to protect their personal information.

The alert urged all Californians to check immediately to see if their personal information had been compromised. The Department also suggested measures consumers could take to protect their personal information.

In addition, the Department issued an advisory to all licensees urging them to step up and take proactive measures to help their consumers mitigate effects of the data breach. Many DBO licensees entrusted Equifax with their clients’ personal information.

Strategies outlined in the advisory include ensuring vendor security procedures are evaluated and approved, verifying that all security patches are installed as soon as possible, monitoring customer accounts for unusual activity, and providing customers with information to help prevent identity theft and protect themselves after a data breach.

Commissioner Owen testified that the DBO could declare the company an unsafe vendor and tell financial institutions in California to stop using Equifax.

 

SAFE-BIDCO Contact and Claims Information

On September 18, Commissioner Owen took possession of the property and business of the State Assistance Fund for Enterprise, Business and Development Corporation, or SAFE-BIDCO, pursuant to Financial Code section 592. On the same day, the Commissioner appointed Robb Evans as a special deputy commissioner for the purpose of liquidating SAFE-BIDCO’s assets, discharging its liabilities, and winding down its operations.

If you have an ongoing relationship with SAFE-BIDCO (e.g., as a borrower, lender, or recipient of loan servicing or underwriting services), and you need to contact the special deputy commissioner, please visit the website of Robb Evans & Associates at https://www.robbevans.com.

If you have claims against the property or business of SAFE-BIDCO, please view legal documents concerning your rights and remedies at https://www.robbevans.com/find-a-case/casepage/state-assistance-fund-for-enterprise-business-and-industrial-development-corporation.

 

Financial Education Trainer Convening Coming to San Diego

State-chartered banks and credit unions with offices in San Diego are invited to join the DBO on November 17 for a Financial Education Trainer Convening, Resource Fair and Workshop. Participants will discuss new campaigns, initiatives and resources regarding savings, credit and debt, homeownership, retirement planning, and financial fraud prevention.

This convening provides an opportunity for local community-based organizations, financial institutions and government agencies to collaborate on financial education, consumer protection and community outreach in the San Diego region. Register here for the Financial Education Trainer Convening, Resource Fair and Workshop.

 

CSBS Announces Fintech Advisory Panel Members

The Conference of State Bank Supervisors (CSBS) announced on October 19 that 33 financial technology companies have agreed to serve on the CSBS Fintech Industry Advisory Panel. The panel brings together state regulators and industry leaders to identify ways to help modernize the state regulatory system. A fact sheet and a full list of participating companies are posted at the CSBS website.

The advisory panel will have three working groups: money transmission and payments; lending; and community banking and innovation. Panel members and state regulators will discuss existing problems and identify opportunities to improve multi-state licensing and supervision.

The advisory panel is a key element of CSBS’ Vision 2020, a series of initiatives designed to forge an integrated, 50-state licensing and supervisory system for non-depository financial institutions, including fintechs, while ensuring safety and soundness and consumer protections.

 

SCO Unclaimed Property Division Fall 2017 Newsletter for Holders

The State Controller’s Office has released the Fall 2017 Unclaimed Property Division Quarterly Newsletter for Holders. The newsletter includes information of interest to DBO licensees that are holders of unclaimed property, including banks and credit unions. The newsletter covers:

  • Extension Requests due to Impact of Natural Disasters
  • Maintaining Compliance
  • Ask an Analyst: Holder Contact Information
  • Holder Reimbursements

 

Commercial Bank Activity

Merger

Bank of Napa, N.A., Napa, to merge with and into Bank of Marin, Novato
Approved: 10/23/17

California United Bank, Los Angeles, to merge with and into Pacific Western Bank, Beverly Hills
Effected: 10/20/17

Far East National Bank, Los Angeles, to merge with and into Cathay Bank, Los Angeles
Approved: 10/23/17
Effected: 10/27/17

Plaza Bank, Irvine, to merge with and into Pacific Premier Bank, Irvine
Approved: 10/23/17

Acquisition of Control

Carpenter Bank Partners, Inc. and affiliates, to acquire control of Pacific Premier Bancorp et.al.
Filed: 10/5/17

Farmers & Merchants Bancorp, to acquire control of Bank of Rio Vista
Filed: 9/19/17
Approved: 10/23/17

First Choice Bancorp, to acquire control of First Choice Bank
Filed: 9/22/17
Approved: 10/27/17

New Resource Bancorp, to acquire control of New Resource Bank
Approved: 9/28/17

Purchase of Partial Business Unit

Bank of the Sierra, Porterville, to purchase the Woodlake branch of Citizens Business Bank, Ontario
Approved: 10/12/17

Credit Union Activity

Merger

Financial Benefits Credit Union, Alameda, to merge with and into Financial Partners Credit Union, Downey
Filed: 8/28/17
Approved: 9/19/17

Harbor Area Postal Employees Federal Credit Union, Lomita, to merge with and into Arrowhead Central Credit Union, San Bernardino
Approved: 10/13/17

Stockton Community Federal Credit Union, Stockton, to merge with and into UNCLE Credit Union, Livermore
Filed: 9/11/17
Approved: 10/27/17

Change of Name

The California Credit Union changed its name to California Credit Union
Effected: 9/8/03

Premium Finance Company Activity

New Premium Finance Company

Millennium Finance Corp.
660 Newport Center Drive, Newport Beach
Opened: 10/10/17

National Partners FPco Inc. of California
1610 Wynkoop Street, Denver, Colorado
Approved: 9/7/17
Opened: 9/20/17

Pro Capital Finance, Inc.
660 Newport Center Drive, Newport Beach
Approved: 10/18/17

Reliance Premium Finance, Inc.
2550 North Hollywood Way, Burbank
Approved: 10/13/17

Aquisition of Control

IPFS Corporation, to acquire control of Premium Assignment Corporation II
Filed: 9/21/17

Foreign (Other State) Bank Application

Bank of Taiwan
75 East Santa Clara, San Jose (Representative Office)
Approved: 10/12/17

Foreign (Other State) Bank Application

New Office

Byline Bank
4695 MacArthur Court, Newport Beach (Facility – Insured Bank)
Notified: 9/25/17

Newport Trust Company
515 S. Figueroa Street, Los Angeles (Facility – Uninsured Trust Company)
Approved: 10/13/17
Opened: 10/19/17

 

Money Transmitter Activity

New Money Transmitter

Bannockburn Global Forex, LLC
Opened: 10/23/17

Bill.com
Opened: 10/9/17

HSI USA Inc.
Approved: 8/15/17

Intercambio Express, Inc.
Approved: 8/14/17

Mercari, Inc.
Approved: 8/29/17

PE Global Partners, LLC
Filed: 10/12/17

Acquisition of Control

Moneycorp Inc., to acquire control of Commonwealth Foreign Exchange, Inc.
Approved: 10/27/17

Naspers Fintech Investments B.V., to acquire control of Remitly, Inc.
Filed: 10/25/17

Prabhu Group, Inc. dba Prabhu Money Transfer
Filed: 9/26/17

 

JAN LYNN OWEN
Commissioner of Business Oversight    

Save Our Water

 

The November 2017 Monthly Bulletin covers the month ended October 31, 2017. It is issued pursuant to Financial Code section 376.
The Monthly Bulletin is available without charge via e-mail. To subscribe, go to: http://www.dbo.ca.gov/Resources/subscription.asp.