CULVER CITY, Calif. – A bank closed here on Friday has ties to Primary Financial's popular SimpliCD program.
According to a notice sent by Primary Financial to corporates, who then forwarded the information on to members, credit union CDs were on deposit at failed Alliance Bank, managed through the SimpliCD program.
Alliance was closed by the California Department of Financial Institutions this past Friday, with the FDIC being named receiver. San Diego based California Bank & Trust has entered into a purchase and assumption agreement with the FDIC, according to the agency's Feb. 6 release.
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John Parks, Primary Financial's AVP of Institutional Funding, told corporates in a notice that "California Bank and Trust will have the option to adjust the rate on the CDs. If they do choose to adjust the rates on the CDs you should have the option to early redeem the CD without penalty. We will verify this information with the FDIC and California Bank and Trust on Monday."
Primary Financial did not immediately respond to an interview request.
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