September 28, 2026
California Business and Consumer Services Secretary Rohit Chopra Statement on Nano Banc Seizure
Sacramento – This weekend, the California Department of Financial Protection and Innovation (DFPI) seized Nano Banc and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. California Business and Consumer Services Secretary Rohit Chopra issued the following statement:
"This weekend's action underscores California's commitment to protecting the public, holding bad actors accountable, and maintaining a safe and sound banking system. While federal regulators work to weaken oversight of bank management and roll back consumer protections, California is charting a better path.
Nano Banc was a repeat offender of banking laws. Several of its former executives have already been banned from the business of banking, including for fraud during the COVID–19 pandemic. California took multiple actions against the bank for its mismanagement. Ultimately, California DFPI seized the bank and appointed the FDIC as receiver.
While a buyer has assumed substantially all of Nano Banc's deposits, this is never a sure thing, especially when it comes to larger banks like Silicon Valley Bank. Nano Banc's failure is an important reminder of unfinished business.
California will closely guard against gross mismanagement by executives and board members. While federal regulators ramp up efforts to reduce oversight of senior management, California continues to signal the importance of this work. We will also take further steps to ensure that third–party auditors retained by banks are actually exercising independent judgment.
In addition, California will play a leading role in addressing risks related to uninsured deposits, including heightened scrutiny for banks with high levels of these deposits. Uninsured depositors are more likely to run in times of stress. Nano Banc had a substantial level of uninsured deposits. Nationally, the level of uninsured deposits has notably risen, and federal policymakers are refusing to play their part in safeguarding the system."
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