Federal regulators close 9 banks NEW YORK - Regulators shut California National Bank of Los Angeles and eight other banks as the weak economy continues to produce a stream of loan defaults. Colonial BancGroup shut down by federal officials WASHINGTON - Real estate lender Colonial BancGroup Inc. has been shut down by federal officials in the biggest U.S. bank failure this year. 2 dead, 4 hurt in Ariz. graduation party shooting MESA, Ariz. - Police in Arizona say two people are dead and four others wounded after a shooting at a high school graduation party at a home.