Sat, 12 Sep 2009 05:34:42 GMT
 |
One of the construction projects financed by the Corus Bank |
US bank regulators have moved to shut down a major Chicago-based lender to construction projects, bringing the number of failed banks to 92 this year.
Corus Bancshares Inc. has been added to the list of banks that have collapsed since January under the deluge of loan defaults triggered by the credit crunch.
Despite a sizeable $7 billion in total assets, and $7 billion in deposits, Corus was seized by the Federal Deposit Insurance Corp. (FDIC) on September 11.
The FDIC says Chicago-based MB Financial Inc. will assume deposits of Corus Bank - one of the largest banks to fail this year.
The FDIC, which has insured bank deposits since the Great Depression, compensates customers of failed banks up to $250,000 per account, and the closure of Corus Bank will cost it about $1.7 billion.
Regulators ordered the closure of Corus after its proposed plans for restructuring was rejected.
Last year, 25 US banks failed, compared with only 3 in 2007.
With about $307 billion in assets, the Seattle-based Washington Mutual Inc. (WaMu) became the largest US bank to collapse in September last year.
DB/ZAP/DT
Source
Corus Bancshares Inc. has been added to the list of banks that have collapsed since January under the deluge of loan defaults triggered by the credit crunch.
Despite a sizeable $7 billion in total assets, and $7 billion in deposits, Corus was seized by the Federal Deposit Insurance Corp. (FDIC) on September 11.
The FDIC says Chicago-based MB Financial Inc. will assume deposits of Corus Bank - one of the largest banks to fail this year.
The FDIC, which has insured bank deposits since the Great Depression, compensates customers of failed banks up to $250,000 per account, and the closure of Corus Bank will cost it about $1.7 billion.
Regulators ordered the closure of Corus after its proposed plans for restructuring was rejected.
Last year, 25 US banks failed, compared with only 3 in 2007.
With about $307 billion in assets, the Seattle-based Washington Mutual Inc. (WaMu) became the largest US bank to collapse in September last year.
DB/ZAP/DT
Post a Comment
0Comments