It's Bank Failure Friday!!! (on Saturday)

And here they are, ordered, and numbered for the year so far.

13. Central Arizona Bank, Scottsdale, AZ

Full FDIC list

This closing was odd, because it occurred on Tuesday, May 14. The last time we had a bank closing not on a Friday, it was Park Avenue bank in 2010, and it was closed because of fraud.

In this case, it appears that there may be some issues with the bank holding company, Capitol Bankcorp, which has been shedding subsidiaries for the past few years and this might be an issue of cross guaranty issues:

After controlling more than 50 banks at its peak, Capitol Bancorp has reduced its subsidiary count to 12 banks through intra-company mergers and divestitures to outside parties. Primarily, the mergers and sales are designed to raise capital or avert a failure. A failure of any one bank subsidiary could trigger the failure of all banking subsidiaries. Through statute referred to as Cross-Guaranty, the FDIC can demand reimbursement for the cost of a failure against any of Capitol Bancorp's still open banking subsidiaries. To facilitate the divestitures, the FDIC has issued at least 16 Cross-Guaranty waivers. Some observers may question the cost effectiveness of issuing the waivers.

And here are the credit union closings:

7. First Kingdom Community Federal Credit Union, Selma, AL

Full NCUA list

The 2^nd quarter is showing a lot more activity than the 1^st quarter did.

So, here is the graph pr0n with last years numbers for comparison (FDIC only):