Seven Illinois Banks Fail
CHICAGO (TheStreet) -- Regulators shut down seven Illinois banks Friday, bringing this year's tally of failed U.S. banks and thrifts to 57.
The Federal Deposit Insurance Corp. found buyers for all of the failed institutions, and the failed banks' branches were all expected to reopen Saturday.
All of the failed institutions were included in TheStreet.com's list of undercapitalized banks.
AmcoreThe Office of the Comptroller of the Currency closed Amcore Bank NA, the main subsidiary of Amcore Financial (AMFI). Amcore had $3.8 billion in total assets and 58 branches, making it the largest failure on Friday. The FDIC was appointed receiver and sold all of Amcore's deposits for a small premium to Harris NA of Chicago. Harris is a subsidiary of Bank of Montreal (BMO). The FDIC agreed to share in losses on $2 billion of the assets acquired by Harris and estimated the cost to the deposit insurance fund would be $220.3 million. The remaining six failed banks were all shut down by the Illinois Department of Financial and Professional Regulation.
MB Financial Scoops Up Two MoreThe FDIC arranged for Broadway Bank and New Century Bank, both of Chicago, to be taken over by MB Financial Bank NA, the main subsidiary of MB Financial (MBFI). MB Financial, which is also headquartered in Chicago, paid no premium to the FDIC for the failed banks' deposits. Broadway Bank had total assets of $1.2 billion, and the FDIC agreed to share in losses on $878 million, projecting a cost of $394.3 million to its deposit insurance fund. New Century Bank had roughly $486 million in assets. The FDIC agreed to share in losses on $429 million and projected the cost to the insurance fund would be $125.3 million. MB Financial has now acquired six failed institutions during 2009 and 2010, the largest of which was Corus Bank, which failed in September 2009.
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 + 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