On September 8, 2009
United Commercial Bank Pays Price for Breakneck Growth
Under pressure from financial regulators, ailing UCBH Holdings, a California banking company that caters to Chinese-Americans and U.S. businesses doing business in China, is cleaning house. The $13.4 billion-asset company’s top two executives are leaving. UCBH also promised the FDIC and local banking authorities that it would take a series of steps to shore up its business. But that will be a very tall order, and the company’s best hope may be to find a buyer. What sunk 11-year-old UCBH, whose shares traded for more than $20 in 2004 but which have since sunk to $1.14, was its aggressive ramp-up in commercial lending over the last decade. The company boosted its domestic commercial loans from less than $100 million in…
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