In his Jan. 8 Viewpoint, "A Better Charter Alternative for Credit Unions", Alan D. Theriault recommends rules that more aggressively promote the conversion of credit unions to banks, citing capital pressures as the reason. But his call for credit unions to give up their charter flies in the face of today's economic realities and public sentiment.

Determining that Barnes Banking Co. of Kaysville, Utah, is "critically undercapitalized," the Federal Reserve Board said Monday that the company should issue new shares or sell itself to another depository institution by Friday.

Capitol Bancorp Ltd. in Lansing, Mich., announced Monday that it has a deal to sell its 51% stake in Adams Dairy Bank in Blue Springs, Mo., to the bank's board of directors.

The $3.5 billion-asset company in Charleston, S.C., said in a press release late Friday that it expects to record a loan-loss provision of $25 million to $26 million for its quarter that ended Dec. 31.

A new round of watchdog reports says the Federal Deposit Insurance Corp. could have been tougher in regulating three community banks that later closed.

Bankers formerly with large institutions are finding opportunities at smaller banks, particularly after their former employers failed or were merged into other companies.

As large banks continue to be derided in the court of public opinion, community bankers have emerged as a more potent political force. They won a crucial exemption from a House regulatory reform bill and are expected to have a significant impact on the Senate debate.

The Federal Reserve announced enforcement actions Friday against North Valley Bancorp in Redding, Calif. Under a written agreement, North Valley cannot, without prior Fed approval, directly or indirectly extend or renew credit to borrowers whose credit is deemed "doubtful" or "substandard," among other credit-related restrictions.

Sterling Bancshares Inc. in Houston has promoted Bob S. Smith to chief credit officer at the company's subsidiary bank.

Friday brought the first failure of the year as Horizon Bank in Bellingham, Wash., was closed by state regulators.

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Midwest Banc Holdings Inc. in Melrose Park, Ill., said credit quality continued to deteriorate at its subsidiary bank in the fourth quarter, and warned the bank's capital ratios are expected to fall from a well-capitalized level at the end of the third quarter to undercapitalized for the fourth quarter.

Given its performance and capital levels, Chemical Financial Corp. had long been thought of as a market consolidator in its home state of Michigan, but it remained on the sidelines — until now.

A Federal Trade Commission study of nine of the largest buyers of delinquent consumer debt has participants in this industry worried that a clampdown is coming.

The Federal Reserve announced enforcement actions Friday against North Valley Bancorp of Redding, Calif.

Chemical Financial Corp. has agreed to acquire fellow Michigan bank O.A.K. Financial Corp. in an all-stock deal worth about $77 million.

Community Central Bank Corp. in Mount Clemens, Mich., said Thursday that it had raised $2.7 million in fresh capital. The investment was made through a private placement involving local investors who bought convertible perpetual preferred stock.

Regulators, with their reputations on the line and anxiety about the future, are forcing some banks to hold on to much of the capital. In recent months, some banks that wanted to fully repay the Troubled Asset Relief Program were allowed to return a fraction.

The Federal Deposit Insurance Corp. plans to issue a proposal Tuesday that would add specific types of compensation programs to the list of risk factors that determine a bank's assessment rate, according to sources.

The question of long-term viability is what gets progressive managers looking at the bank charter. And, access to the capital markets may be critically linked to viability.