FDIC Okays CapitalSource Deposit Insurance

The Federal Insurance Deposit Corp. has approved the application for a newly formed California-chartered industrial bank subsidiary of CapitalSource Inc., Chevy Chase, Md., to receive deposit insurance. The approval is the final regulatory OK needed for CapitalSource to acquire certain assets and liabilities of Fremont Investment & Loan, which is being sold by its troubled parent company, Fremont General Corp., Brea, Calif. The FDIC also approved that purchase as well as the establishment of 22 FIL branches as offices of CapitalSource Bank. Under the agreement, CapitalSource is not acquiring the FIL charter, which remains with Fremont General. The California Department of Financial Institutions approved the deal on June 13. "Further diversifying our funding sources has long been an important strategic goal," said John K. Delaney, CapitalSource chairman and chief executive. "The formation and operation of a regulated bank with significant deposits meets that objective."