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Article: Vineyard National told to end brokered deposits.(FINANCE)(Brief article)
- Article from:
- San Diego Business Journal
- Article date:
- August 18, 2008
- Author:
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Copyright informationCOPYRIGHT 2008 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Vineyard Gets Marching Orders: Vineyard National Bancorp, based in Corona and with a single office in Mission Valley, received a regulatory order last month that required, among several things, to stop accepting brokered deposits, or those arranged through intermediaries.
Because access to brokered money is closed, Vineyard has had to resort to offering higher interest rates on retail deposits. Last week the bank was paying 4.35 percent for a one-year CD, one of the highest rates in the nation.
"As brokered deposits run off, that usually forces banks to pay higher rates than what they used to pay," said Hans Ganz, chief executive at Pacific Trust Bank.
Thanks to a ...
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