Insights into Why Banks Fail - Mutual Bank's Material Loss Review

Mutual Bank failed on July 31, 2009. I had reported on this banks several times before the failure regarding some very nice CD deals. High CD rates make regulators suspicious, and you can read what the FDIC Inspector General says about Mutual Bank CDs in its material loss review

Historically, Mutual Bank relied heavily on potentially volatile funding sources, particularly promotional, higher-priced Certificates of Deposit (CD), brokered deposits, and Federal Home Loan Bank (FHLB) borrowings to support, loan growth.