This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Corus Bank Assets Sold for $550M: Report

CHICAGO ( TheStreet) -- A group led by Starwood Capital won the bidding for the assets of failed Chicago-based Corus Bank, the Financial Times reports.

The group made an aggressive offer taking advantage of a complex financing package which was drafted by the Federal Deposit Insurance Corp. The deal's purchase price of $550 million values the assets, mostly non-performing construction loans on unfinished buildings, at $2.5 billion which is almost half the face value of its loans of $5 billion, the newspaper reports.

The FDIC package will not only entitle the winning group to receive a management fee of around $40 million to meet expenses, but also will provide access to about $1 billion in interest-free financing from the FDIC, loans at a subsidized rate and a revolving line of credit.

The buyers, which also include Wilbur Ross, hedge fund Perry Capital and private- equity firm TPG, will take 40% of a newly created limited liability corporation that will buy the assets, while the remaining 60% will be taken by FDIC. Notably, none of the parties will be able to reap any profits until FDIC is repaid on its loans.

Corus Bank, a unit of Corus Bankshares (CORS), was shut down last month by the Office of the Comptroller of the Currency. The FDIC was appointed receiver and sold the failed bank's deposits and branches to MB Financial Bank, a subsidiary of MB Financial (MBFI).
This article was written by a staff member of

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%
YHOO $36.60 0.03%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs