CapitalSource
Parent PacWest Bancorp (since 2014) | | |
| Website | www | |
|---|---|---|
CapitalSource is a
CapitalSource is often referred to as an on-balance sheet lender because its loans are originated, underwritten and managed internally. The majority of its loans are in three categories: first mortgage,
History
CapitalSource was founded in 2000 by future Congressman John Delaney (D-MD) and Jason Fish with an initial capitalization of more than $500 million, which at the time was the largest private capitalization for a finance company.[2]
In 2003, CapitalSource completed an
In 2009, CapitalSource completed its revocation of REIT status.[3] Today the company operates as a C-Corp, as it did prior to 2006.
CapitalSource was briefly involved in a controversial hotel project which also involved rapper
CapitalSource Bank was involved in another newsworthy property issue in 2010 when they foreclosed upon a high-end Manhattan project under development. The "Manhattan Blue" condominium building had initial interest from Leonardo DiCaprio, but the developers failed to sell enough units to make payments to CapitalSource.[5]
In early 2012, CapitalSource moved its headquarters to Los Angeles.[6]
In 2013, the Washington Post identified CapitalSource as a major lender to Aeon Financial, a secretive company that aggressively purchases tax liens and charges homeowners "excessive," "unreasonable," and "extraordinarily high" in order to avoid foreclosure.[7]
CapitalSource was acquired by PacWest Bancorp in July 2013 for around $2.29 billion.[8] The merger received final regulatory approval on April 1, 2014.[1] In the agreement, CapitalSource, trading as CSE, ceased to trade at market close on April 7, 2014. Existing CapitalSource shareholders received a combination of cash and a fixed exchange ratio of PACW shares.
In April 2014, Pacific Western Bank and CapitalSource merged to form what is now the 6th largest publicly traded commercial bank headquartered in California, with more than $16 billion in assets. Following its acquisition of CapitalSource, Pacific Western Bank has faced opposition in its efforts to acquire additional lenders. For instance, after Pacific Western Bank unveiled plans to acquire California United Bank in 2017, community groups voiced concerns about the potential transaction, saying it should be approved only if the terms are changed.[9]
Recognition
CapitalSource Bank played a central role in the founding of the
References
- ^ a b "Press Release | Pacific Western Bank". Archived from the original on September 24, 2015.
- ^ Dan Freed, "The Street," October 13, 2009,"
- Washington Business Journal. Retrieved October 21, 2010.
- ^ Troianovski, Anton (May 10, 2010). "Plans for 14th Street Hotel Go Nowhere". The Wall Street Journal. Retrieved October 25, 2010.
- ^ Craig Karmin (August 5, 2010). "Foreclosure Buyer Gets Hudson Blue". Wall Street Journal. Retrieved October 25, 2010.
- Washington Business Journal. Retrieved January 10, 2013.
- ^ "Debt-collection machine". The Washington Post.
- ^ "Deals of the day -- mergers and acquisitions". Reuters. 23 July 2013. Archived from the original on 24 September 2015. Retrieved 30 June 2017.
- ISSN 0458-3035. Retrieved 2017-10-03.
- ^ CapitalSource Bank. "CapitalSource Bank Community Reinvestment". Archived from the original on 2011-07-06. Retrieved 2010-10-22.
- ^ Elder Financial Protection Network. "Board of Directors EFPN". Archived from the original on 2010-10-26. Retrieved 2010-10-22.
- ^ U.S. Treasury Department. "CDFI Fund Awards Nearly $25 Million to Institutions for Increasing Lending and Investment in Economically Distressed Communities". Archived from the original on 2010-10-22.
- ^ U.S. Treasury Department. "Community Development Financial Institutions Fund 2010 BEA Award List" (PDF). Archived from the original (PDF) on 2011-10-16.