The Region - News from Feb. 9, 1986

Barclay’s Bank of California has agreed to act as an agent of the Federal Deposit Insurance Corp. in handling insured deposits of the Valencia Bank, which was declared insolvent and taken over Friday by the state Banking Department. Barclay’s agreed to pay $251,000 for the privilege of handling the deposits--on the assumption that it may be able to keep most as permanent customers. Valencia, once Orange County’s third-largest independent bank, has suffered three years of reverses, with losses totaling $10.4 million, banking authorities said. The FDIC said 46 customers with accounts over the $100,000 insurance limit will be entitled to share in any money left over after liquidation.