Corus Bank Incurs Federal Curb

September 12th, 2009 - 6:41 pm ICT by GD  

By Meena Kar
kensington_brooklyn_development_site_financed_by_corus_bank_-_23_caton_place1Federal regulators have taken control of the Chicago-based Corus Bank on Friday. The Office of the Comptroller of the Currency, officially announced the FDIC as the subsequent receiver.

Corus which supported upcoming projects in Nevada, Southern California and Florida, has been put in bad light by the New York Times which blamed it of enabling a condo madness. The several branches under the Corus Bank and their deposits will be transferred to MB Financial Inc., an organization that has 70 branches in Chicago and its outskirts. There is an ambiguity about what will become of the Corus Bank’s prize assets. The seized institution’s dues of condominium loans under 111 developments will soon be under sale by the FDIC reportedly. Some real-estate organizations and equity firms had their eyes on it for sometime.

In the month of June this year Corus Bank had a net asset value of $7 billion and deposits nearing the same sum. As per the FDIC estimates the total cost of the Deposit Insurance Fund is approximately $1.7 billion. MB Financial Bank’s coming over has been a very idealistic resolution monetary wise. The buyer is also agreeing to pay a 0.2 % premium to the FDIC, in it’s purchase of $3 billion assets, that is mostly cash and securities. Previously on September 4th, this year, another FDIC-insured organization that shut off was Platinium Community Bank, Rolling Meadows.

Corus Bank is marked as the 90th FDIC backed organization to have failed in the country, and the 16th in Illinois. The remainder assets of Corus in the hands of FDIC will be disposed off in about a month via private transactions reportedly.

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