Bankrupt Capitol Bancorp: Discovery Needed Regarding FDIC's Bank Seizures

DETROIT - Bankrupt Capitol Bancorp Ltd. on Aug. 2 moved in the U.S. Bankruptcy Court for the Eastern District of Michigan for an order compelling the Federal Deposit Insurance Corp. to produce documents and to submit to examination through deposition testimony regarding allegations that the FDIC used its power to close - or pressured bank regulators to close - certain banks by seizing private property (In Re: Capitol Bancorp Ltd., No. 12-58409, Chapter 11, E.D. Mich. Bkcy.).

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