Chicago's Metropolitan Capital Bank & Trust has become the first US bank to fail in 2026, marking a grim milestone for the nation's financial sector. The Illinois Department of Financial and Professional Regulation (IDFPR) ordered the closure of the River North-based bank on Friday due to concerns over its financial stability.
According to IDFPR officials, Metropolitan Capital was placed under receivership by the Federal Deposit Insurance Corporation (FDIC), which then brokered a deal with First Independence Bank in Detroit to purchase most of the bank's $261 million in assets. The FDIC has assured that all deposits will be protected and customers can access their money immediately.
The reasons behind the closure were cited as "unsafe and unsound conditions" and an impaired capital position at Metropolitan Capital. The bank had reportedly grown rapidly across 46 states and 10 countries, with a presence in Chicago and New York. Co-founder Frank Novel was unavailable for comment.
Despite the failure of Metropolitan Capital, customers can rest assured that they won't lose any money due to this closure. In fact, loan payments will continue as usual. This is not the first time a bank has failed in Chicago - only two institutions tanked nationwide last year, including Pulaski Savings Bank, which closed its doors in 2024.
The collapse of Metropolitan Capital marks another setback for the nation's banking system, with 71 Illinois banks failing since 2000 and 22 more in Chicago. The FDIC will incur a loss of approximately $19.7 million to cover the Deposit Insurance Fund.
According to IDFPR officials, Metropolitan Capital was placed under receivership by the Federal Deposit Insurance Corporation (FDIC), which then brokered a deal with First Independence Bank in Detroit to purchase most of the bank's $261 million in assets. The FDIC has assured that all deposits will be protected and customers can access their money immediately.
The reasons behind the closure were cited as "unsafe and unsound conditions" and an impaired capital position at Metropolitan Capital. The bank had reportedly grown rapidly across 46 states and 10 countries, with a presence in Chicago and New York. Co-founder Frank Novel was unavailable for comment.
Despite the failure of Metropolitan Capital, customers can rest assured that they won't lose any money due to this closure. In fact, loan payments will continue as usual. This is not the first time a bank has failed in Chicago - only two institutions tanked nationwide last year, including Pulaski Savings Bank, which closed its doors in 2024.
The collapse of Metropolitan Capital marks another setback for the nation's banking system, with 71 Illinois banks failing since 2000 and 22 more in Chicago. The FDIC will incur a loss of approximately $19.7 million to cover the Deposit Insurance Fund.
Another major bank has bitten the dust! I mean, it's not entirely surprising, right? Banks are like living on borrowed time - one wrong move and they're history. Metropolitan Capital's rapid growth across 46 states and 10 countries does seem a bit suspicious, though. Did they really think they could outrun their financial woes? 
thinking about all these poor people who lost their jobs and savings over this 
And now First Independence Bank has to pick up the pieces and take on all these assets? How are they even supposed to manage that? It's just a never-ending nightmare 
Why can't we learn from our mistakes? We need some real change around here not just some band-aid solution 
. I mean, you can't just keep growing like that without having some underlying issues, right? And $261 million in assets just goes to show how much risk they were taking on. It's not surprising that FDIC had to step in and bail them out.
. I mean, 71 Illinois banks failing since 2000? That's a whole lot of red flags waving. And now we're losing $19.7 million... yeah, not exactly the most optimistic start to 2026 
.
. So, I guess some good comes out of it, right? The thing is, this just keeps happening. Chicago's banking sector has been kinda shaky for a while now 
. Maybe it's time to rethink the whole system? Just sayin' 
but seriously though, 71 illinois banks failing since 2000 is a lot 
especially when u think most ppl r still rebuilding from the 2008 fin crisis 
gotta keep an eye on this tho, don't wanna see more failin' institutions in da future 
. And what really gets my goat is that this is happening in 2026, when we're supposed to be living in some sort of financial utopia 
this is just great... another bank bites the dust 
so at least that's a silver lining.
but hey, at least we can rest assured that the FDIC has our backs 
so fingers crossed they don't get too stressed out about covering the $19.7 million loss 
but yikes $19.7 million loss tho thats alot 