Andrew Christians quoted in SNL – UPDATE: “Regulators take 4th chunk of Capitol Bancorp”
By David Hayes and Lindsey White and Tahir Ali
Capitol Bancorp Ltd. has repeatedly warned that the failure of one unit could bring down the entire franchise. As of June 6, regulators had seized four of the company’s subsidiaries in the space of a month.
The North Carolina Office of the Commissioner of Banks closed Asheville-based Pisgah Community Bank on May 10, and shortly thereafter the Georgia Department of Banking and Finance shut down Valdosta-based Sunrise Bank.
In a rare Tuesday failure, the Arizona Banking Superintendent seized Scottsdale-based Central Arizona Bank on May 14. FDIC spokesman Greg Hernandez told SNL that the bank was scheduled to be closed by the state regulator May 10, but the closing was delayed through a legal challenge.
State regulators also attempted to close North Las Vegas, Nev.-based 1st Commerce Bank on May 10, but the bank fended them off with a temporary restraining order. The FDIC stepped in and closed 1st Commerce on June 6.