Corus Capital Situation Increasingly Dire

Updated from 12:38 p.m. EST

Corus Bankshares (CORS Quote) on Friday reported a widened fourth-quarter loss and said it was unlikely to receive federal aid, putting the Chicago company in a perilous capital position amid mounting loan losses.

Corus, whose troubles TheStreet.com first reported on in August 2007, reported a preliminary fourth-quarter net loss of $261 million, or $4.85 per share, compared to a net loss of $128 million in the third quarter and net income of $2 million in the fourth quarter of 2007.

Shares were down 42.3% to 64 cents in recent trading. ...