8-K

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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

       Date of Report (Date of earliest event reported) December 19, 2006

                          Commonwealth Bankshares, Inc.
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             (Exact name of registrant as specified in its charter)

          Virginia                      01-17377                 54-1460991
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(State or other jurisdiction          (Commission            (I.R.S. Employer
     of incorporation)                File Number)           Identification No.)

                    403 Boush Street, Norfolk, Virginia 23510
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               (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code: (757) 446-6900

                                 Not Applicable
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          (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ]  Written communications pursuant to Rule 425 under the Securities
     Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange
     Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))

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Section 8 - Other Events

Item 8.01 Other Events.

     On December 19, 2006, Commonwealth Bankshares, Inc. issued a press release
announcing the redemption of Commonwealth Bankshares Capital Trust - 8%
Cumulative Convertible Trust Preferred Securities and the removal of the
securities from their listing on NASDAQ. A copy of the Company's press release
is attached as Exhibit 99.1 hereto and is hereby incorporated herein by
reference.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

99.1    Press Release, dated December 19, 2006, entitled "Commonwealth
        Bankshares, Inc., Norfolk, VA, Redeems Commonwealth Bankshares Capital
        Trust I - 8% Cumulative Convertible Trust Preferred Securities."



                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                           Commonwealth Bankshares, Inc.


Date:   December 19, 2006                  By:    /s/ Cynthia A. Sabol, CPA
                                                  ------------------------------
                                           Name:  Cynthia A. Sabol, CPA
                                           Title: Executive Vice President and
                                                  Chief Financial Officer

EX-99.1

                                                                    Exhibit 99.1

   COMMONWEALTH BANKSHARES, INC., NORFOLK, VA, REDEEMS COMMONWEALTH BANKSHARES
     CAPITAL TRUST I - 8% CUMULATIVE CONVERTIBLE TRUST PREFERRED SECURITIES

    NORFOLK, Va., Dec. 19 /PRNewswire-FirstCall/ -- Commonwealth Bankshares,
Inc. (Nasdaq: CWBS) redeemed all the outstanding Junior Subordinated Debt
Securities on December 15, 2006, the redemption date, at the redemption price
(liquidation amount of $5.00 per convertible preferred security) equal to an
amount of cash equal to one hundred percent (100%) of the principal amount to
be redeemed or prepaid, plus any accrued and unpaid interest thereon including
additional interest and additional sums, if any, to the date of such
redemption.  As a result of the redemption, the Commonwealth Bankshares
Capital Trust I - 8% Cumulative Trust Preferred Securities (Nasdaq: CWBSP)
were removed from their listing on NASDAQ.

    About Commonwealth Bankshares

    Commonwealth Bankshares, Inc. is the parent of Bank of the Commonwealth
which opened its first office in Norfolk, Virginia, in 1971, creating a
community bank that was attuned to local issues and could respond to the needs
of local citizens and businesses.  Over the last three decades, the Company's
growth has mirrored that of the communities it serves.  Today, Bank of the
Commonwealth has eleven bank branches strategically located throughout the
Hampton Roads region and an extensive ATM network for added convenience.  The
Company continues to grow and develop new services, such as Online Banking and
a Corporate Cash Management program and at the same time, maintain the
longstanding commitment to personal service.  Our slogan conveys our true
corporate philosophy: "When you bank with us, you bank with your neighbors."
Bank of the Commonwealth offers insurance services through its subsidiary BOC
Insurance Agencies of Hampton Roads, Inc., title services through its
subsidiary Executive Title Center, mortgage funding services through its
subsidiary Bank of the Commonwealth Mortgage and investment related services
through its new subsidiary, Commonwealth Financial Advisors, LLC.*  Additional
information about the company, its products and services, can be found on the
Web at http://www.bankofthecommonwealth.com.

    *Securities and Insurance Products are: *not insured by FDIC or any
Federal Government Agency * May Lose Value * Not a Deposit of or Guaranteed by
the Bank or any Bank Affiliate.  Securities and insurance offered through BI
Investments, LLC. member NASD and SIPC. BI Investments is associated with Bank
of the Commonwealth.  Commonwealth Financial Advisors, LLC is a wholly-owned
subsidiary of Bank of the Commonwealth.  This press release contains forward-
looking statements.  Words such as "anticipates," " believes," "estimates,"
"expects," "intends," "should," "will," variations of such words and similar
expressions are intended to identify forward-looking statements.  These
statements reflect management's current beliefs as to the expected outcomes of
future events and are not guarantees of future performance.  These statements
involve certain risks, uncertainties and assumptions that are difficult to
predict with regard to timing, extent, likelihood and degree of occurrence.
Therefore, actual results and outcomes may materially differ from what may be
expressed or forecasted in such forward-looking statements. Factors that could
cause a difference include, among others: changes in the national and local
economies or market conditions; changes in interest rates, deposit flows, loan
demand and asset quality, including real estate and other collateral values;
changes in banking regulations and accounting principals, policies or
guidelines; and the impact of competition from traditional or new sources.
These and other factors that may emerge could cause decisions and actual
results to differ materially from current expectations.  Commonwealth
Bankshares, Inc. undertakes no obligation to revise, update, or clarify
forward-looking statements to reflect events or conditions after the date of
this release.

SOURCE  Commonwealth Bankshares, Inc.
    -0-                             12/19/2006
    /CONTACT:  Edward J. Woodard, Jr., CLBB, Chairman of the Board, President
and Chief Executive Officer of Commonwealth Bankshares, Inc., +1-757-446-6904,
or ewoodard@bocmail.net/
    /Web site:  http://www.bankofthecommonwealth.com/