State Takes Control of Chicago Bank; Deposits Protected (Chicago, IL) – Illinois banking regulators on Friday took possession of Metropolitan Capital Bank & Trust in Chicago and arranged for its immediate transfer to First Independence Bank of Detroit, a move officials said will fully protect customer deposits and ensure uninterrupted banking services.
The Illinois Department of Financial and Professional Regulation’s Division of Banking, working in cooperation with the Federal Deposit Insurance Corporation, assumed control of the state-chartered bank at 5 p.m. CST on Jan. 30. First Independence Bank, a minority depository institution based in Michigan, agreed to purchase the bank and take over its operations.
State officials emphasized that no customers will lose money as a result of the action.
“Safeguarding the soundness of Illinois’ state-chartered financial institutions is central to IDFPR’s mission,” said Mario Treto Jr., secretary of the Illinois Department of Financial and Professional Regulation. “While we do not take such actions lightly, acting decisively to protect depositors and maintain a safe and sound banking system is our priority.”
According to regulators, Metropolitan Capital Bank & Trust was closed due to what officials described as unsafe and unsound conditions, including an impaired capital position.
“We want to be clear that no depositor will lose any money as a result of this action,” said Susana Soriano, acting director of IDFPR’s Division of Banking. “First Independence Bank is well-positioned to continue essential banking services for Metropolitan Capital Bank & Trust customers.”
At the time of its closure, Metropolitan Capital Bank & Trust reported approximately $261 million in assets. First Independence Bank will immediately operate the Chicago location as a branch of its own bank, with no expected disruption to customer access to accounts or services.
The branch is scheduled to reopen during normal business hours on Monday, Feb. 2.
Metropolitan Capital Bank & Trust was founded in January 2005.
State Takes Control of Chicago Bank; Deposits Protected
