Capitol Bancorp Ltd. says that the Federal Deposit Insurance Corp. is trying to hasten its demise by improperly pressuring state regulators to close its remaining community banks, a course of action that will end up costing the government agency more than if the banks are sold at a bankruptcy auction, Dow Jones Daily Bankruptcy Review reported today. The Michigan bank-holding company’s lawyers said in a court filing on Friday that the agency’s “unnecessary” seizures of four of its banks in recent months has undermined its ability to sell its subsidiary banks.
