Corus Bank Finally Fails
CHICAGO ( TheStreet) -- Corus Bank NA was finally shut down by the Office of the Comptroller of the Currency late Friday, ending a long slide for the condominium lender and bringing the total of failed banks and thrifts this year to 90.
The Federal Deposit Insurance Corp. was appointed receiver of Corus, a subsidiary of Corus Bankshares (CORS), and sold all of the bank's deposits to MB Financial Bank, a subsidiary of MB Financial (MBFI). Corus's eleven branches were set to reopen during normal business hours as branches of MB Financial Bank.
The acquisition was MB Financial's second in a week, following its takeover of the failed InBank of Oak Forest, Ill.
Corus had about $7 billion in total assets and $7 billion in deposits. In addition to the deposits and branches, MB Financial Bank took over about $3 billion in deposits. The FDIC said it expected to sell most of the remaining assets in a private transaction over the next 30 days, and estimated the cost to the deposit insurance fund would be $1.7 billion.The OCC's action followed a published New York Times report published Thursday, saying that the FDIC was looking to make separate deals to sell Corus's deposits and loans. TheStreet.com has covered the Chicago lender's declining loan quality and dwindling capital since August 2007, when Corus Bancorp's capital position seemed threatened after the holding company paid out a special dividend of $1 a share, while problems were mounting in the bank's condominium construction and conversion portfolio.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV