United Western Bank parent files Chapter 11

The parent company for United Western Bank, which was seized by the federal government in January 2011, has filed for Chapter 11 bankruptcy protection, said the Denver Business Journal.

Denver-based United Western Bancorp announced Monday morning that it made the legal move in order to give it more time to pursue a lawsuit against federal regulators.

Its lawsuit claims the bank seizure was an abuse of power.

Read more at the Denver Business Journal.