Three Banks Including Corus Fail
WASHINGTON (TheStreet) -- Regulators closed banks in Illinois, Minnesota and Washington State Friday, bringing the U.S. total of failed banks and thrifts during 2009 to 92.
The Office of the Comptroller of the Currency shut down Corus Bank NA of Chicago, a subsidiary of Corus Bankshares (CORS). The Federal Deposit Insurance Corp. was appointed receiver and sold the failed bank's deposits and branches to MB Financial Bank, a subsidiary of MB Financial (MBFI). Please see TheStreet.com's earlier coverage for details on the long decline and failure of Corus Bank.
Meanwhile, the Minnesota Department of Commerce took over Brickwell Community Bank of Woodbury, Minn. and appointed the FDIC receiver. The FDIC then sold Brickwell's deposits and most of its assets to CorTrust Bank NA of Mitchell, S.D. Brickwell Community Bank had $72 million in total assets. It's sole office was set to reopen Saturday as a CorTrust Branch. The FDIC agreed to share in any losses on the $65 million in assets acquired by CorTrust and projected the cost to its insurance fund would be $22 million.
State regulators closed Venture Bank of Lacey, Wash. The FDIC was appointed receiver and sold the failed institution's deposits and branches to First-Citizens Bank & Trust of, Raleigh, N.C., a subsidiary of First Citizens Bancshares (FCNCA). Venture Bank had $970 million in total assets. First Citizens acquired $874 million in assets from the failed bank, with the FDIC agreeing to share in losses on $715 million. Venture Bank's 18 branches were scheduled to reopen Saturday as branches of First Citizens. The FDIC estimated the cost to its insurance fund would be $298 million.
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