Episode Details

Metropolitan Capital Bank & Trust in Chicago is the first bank failure of 2026. On Friday, January 30th the Illinois Department of Financial and Professional Regulation (IDFPR) closed the single-branch $261 million asset bank. The FDIC was appointed as receiver and sold most of the assets and liabilities of the bank to Detroit based First Independence Bank. IDFPR stated that Metropolitan Capital was closed due to unsafe and unsound conditions and an impaired capital position. This failure is estimated to result in a $19.7 million cost to the FDIC Insurance Fund. This episode also looked at two credit unions that were placed into conservatorship. This episode examined two articles from S&P Global (subscription required) and an article from Banking Dive titled “Chicago bank first to fail in 2026.” A link to the Banking Dive article is included below.  

Link: Chicago bank first to fail in 2026 | Banking Dive