Capital Gold Group Report: FIRST MAJOR BANK FAILS DUE TO DETERIORATING CONSTRUCTION AND COMMERCIAL REAL ESTATE LOANS

By J. Ryman on September 14, 2009 11:38 AM |
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CORUS IS THE SECOND LARGEST BANK TO FAIL THIS YEAR

September 14, 2009

Federal regulators seized Chicago-based Corus Bank, marking the first major bank to be undone by deteriorating construction and commercial real-estate loans during the current downturn.

The branches and deposits of Corus will be assumed by MB Financial, which has more than $8 billion in assets and over 70 branches in Chicago and its suburbs. MB Financial earlier this month took over the assets, branches and assets of InBank, a small bank based in Oak Forest, Ill.

Corus is the second largest bank to fail this year. It will cost the government between $1.5 billion and $2.4 billion in losses, depending on the performance of the bank's outstanding loans. [The FDIC Insurance Fund currently stands at $10.4 billion.]

In addition to Corus Bank, Venture Bank of Lacey, WA, and Brickwell Community Bank of Woodbury, MN, also failed, bring the total bank failures for 2009 to 92.



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This page contains a single entry by J. Ryman published on September 14, 2009 11:38 AM.

Capital Gold Group Report: INSIDERS SELL LIKE THERE'S NO TOMORROW was the previous entry in this blog.

Capital Gold Group Report: Gold Seen Above $1,100 in 2010 on Central Bank Buying is the next entry in this blog.

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