The housing bubble in Arizona became a cash cow for the unscrupulous. Up until the bubble burst in late 2008, crooked investors and people involved in writing up loan documents bilked banks and homeowners out of millions.

Most community banks in Arizona are losing money, lending is down, and a veteran banker concedes that every day is a challenge.

It was a little too challenging for two Arizona banks, which were closed by state and federal regulators Aug. 14. A third bank is operating under federal orders to improve what were found to be “unsafe and unsound banking practices.”