Review of FDIC OIG report on Metropolitan Capital Bank's failure

Metropolitan Capital Bank & Trust (MCB) failed in January 2026. I covered the failure in a previous episode, but this episode covers the FDIC Office of Inspector General (OIG) report that reviews what they believe caused the failure. The ongoing problems at MCB have been documented. The OIG report concluded that bad loans from poor internal oversight, governance, and risk management led to critically deficient capital levels and thus bank failure. The FDIC identified suspicious activity associated with bank insiders confirming their misuse of position and the self-dealing of senior bank officials, and yet none of the individuals involved will be prosecuted? Unfortunately, this report leaves us with more questions than answers. This episode reviewed the FDIC OIG failed bank review for Metropolitan Capital Bank & Trust, Chicago, Il and an article from S&P Global (subscription required) titled ‘high-risk lending’ led to Metropolitan Capital Bank’s failure – OIG review.’ A link to the FDIC OIG report is included below. Link: Failed Bank Review – Metropolitan Capital Bank & Trust, Chicago, IL