Bankrupt Capitol Bancorp Faults FDIC For Bank Seizures

Law360, Chicago (August 05, 2013, 6:10 PM ET) -- Bankrupt Capitol Bancorp Ltd. accused the Federal Deposit Insurance Corp. on Friday of interfering with the bank holding company’s efforts to sell off its remaining community banks by improperly pushing to have them closed instead.

In a Michigan bankruptcy court filing, Capitol Bancorp said the FDIC in recent months has pressured state banking regulators and used other means to cause the seizure of four of its banks, resulting in $44 million of unnecessary losses on insured deposits.

“If the FDIC’s conduct continues, it will cause significant...
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