Using cutting edge research, this blog predicts and comments on the probability of failure for the nearly 7000 regulated banks monitored by the Federal Reserve. While most depositors may be protected by the FDIC, the importance of bank survival is still very important to bank clientele with lines of credit, mortgages, loans or other forms of financing. We seek to inform people that they might be at risk.
Friday, May 17, 2013
Another Capitol Bancorp Limited Failure
In unusual move, regulators did not wait until a Friday to shut down Central Arizona Bank of Scottsdale, Arizona. On Tuesday, the Arizona Department of Financial Institutions decided to seize the third affiliate of Capitol Bancorp Limited within one week. Central Arizona Bank was fifteenth on the most recent list. The $31.6 million in bank by total assets was acquired by Western State Bank (1963rd) of Devils Lake of North Dakota along with its $30.8 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $8.6 million.