Overview
- Illinois regulators closed Metropolitan Capital Bank & Trust on Friday and the FDIC was appointed receiver.
- Detroit-based First Independence Bank agreed to assume substantially all deposits, purchased most assets, and reopened the River North branch under its name.
- The FDIC reported $261 million in assets and $212 million in deposits at closure and estimated a $19.7 million cost to the Deposit Insurance Fund, subject to change as retained assets are sold.
- A Bisnow review links the failure to a $4.5 million loan tied to the Rosewood nursing-home portfolio, junior to a $146 million HUD-insured mortgage that defaulted, with borrower Zvi Feiner facing DOJ charges.
- Court and regulatory records show the bank modified the loan five times, drew a 2019 consent order on substandard lending, and was faulted by an Illinois appellate court in 2020 for inadequate due diligence.