The Office of Thrift Supervision filed a motion Wednesday to put the two holding companies of Bradford Bank into receivership.
Regulators closed the $452 million-asset Bradford Bank in Baltimore on Friday. It was a mutual bank owned by the holding companies Bradford Bank MHC and Bradford Mid-Tier Co.
On Wednesday, the OTS filed a petition in U.S. District Court in Maryland for the appointment of a trustee and receiver for the holding companies. Once a trustee is appointed, the holding companies are to file for bankruptcy.
How to treat holding company failures has been a hot topic during the regulatory restructuring debate. The Federal Deposit Insurance Corp. is seeking authority from Congress to be able to resolve bank holding companies when a bank subsidiary fails.