Scottsdale bank ordered to raise capital or seek a buyer

Legacy Bank of Scottsdale has been ordered by a federal banking regulator to raise capital soon or seek to be acquired by another company. The Federal Deposit Insurance Corp. issued a "prompt corrective-action directive" after finding that a capital-restoration plan submitted by Legacy last July was inadequate. The directive was made in late May and announced by the FDIC on June 25. The FDIC, which helps oversee state-chartered banks, said Legacy's condition continues to deteriorate and cited management's inability to restore the bank to a safe-and-sound status. Separately, the Office of the Comptroller of the Currency, which oversees nationally chartered banks, issued recent cease-and-desist orders for Phoenix-based Sunbank and Goldwater Bank of Scottsdale.

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