Sep. 30, 2010 at 11:04 a.m.
Filed under:
Bank failures,
Banking,
Policy,
Politics,
Small business
By Becky Yerak
A Chicago-area bank whose chief executive met with President Obama last December to discuss small-banking matters has been ordered by the nation’s thrift regulator to maintain certain capital levels, among other things.
Matt Gambs, who in 2008 joined Schaumburg-based Diamond Bank as its new chief executive, said that earlier this week members of its board of directors, including existing investors, pumped $1 million in fresh capital into the closely held lender, which also has a branch near the intersection of Clark and North in Chicago. Get the full story »
Sep. 24, 2010 at 6:44 p.m.
Filed under:
Bank failures,
Banking,
Policy,
Regulations,
Updated
By Becky Yerak
A $7 billion-asset Warrenville credit union that suffered massive losses in mortgage-backed securities was one of three critically undercapitalized institutions seized Friday by the U.S. government.
Members United Corporate Federal Credit Union was one of three “wholesale,” or “corporate,” credit unions put into conservatorship by the National Credit Union Administration. Get the full story »
Sep. 9, 2010 at 4:04 p.m.
Filed under:
Bank failures,
Banking,
M&A,
Management
By Associated Press
Some say the wave of bank consolidation seen in the last two decades is over, but an outspoken analyst who developed a formula for identifying banks that could be takeover targets on Thursday listed 17 he says are ripe, including Chicago-based MB Financial. Get the full story »
Sep. 2, 2010 at 11:22 a.m.
Filed under:
Bank failures,
Banking,
Consumer news,
Investing
By Becky Yerak
Urban Partnership Bank, the successor to the recently failed ShoreBank, has already boosted the interest rates on a couple of savings accounts for its online ShoreBank Direct.
The ShoreBank Direct Online Savings Account now pays a 1.25 percent annual percentage rate with a $100,000 minimum balance, up from 1.19 percent. It also pays 1.2 percent for balances of less than $100,000, up from 1.03 percent.
The rate hikes were first reported by www.depositaccounts.com, a tracker of bank account trends. Get the full story »
Aug. 30, 2010 at 11:04 a.m.
Filed under:
Bank failures,
Banking,
Jobs/employment,
Layoffs
By Becky Yerak
An exterior view of ShoreBank at 3401 S. King Drive on the South Side, May 18, 2010. (Chris Walker/Chicago Tribune)
The company that bought ShoreBank has cut about 60 of the more than 300 positions at the recently failed South Side lender.
Urban Partnership Bank, the newly formed group that on Aug. 20 acquired ShoreBank through a deal brokered by the Federal Deposit Insurance Corp., said the job cuts were “a difficult decision.”
But “a smaller workforce is needed going forward in order for Urban Partnership Bank to continue the mission and to be a strong, sustainable player in our communities,” said Brian Berg, spokesman for Urban Partnership Bank. Get the full story »
Aug. 27, 2010 at 4:21 p.m.
Filed under:
Bank failures,
Banking,
Economy,
Investing,
Policy
By Reuters
A U.S. appeals court granted the Federal Reserve a 60-day delay in implementing a ruling to force the central bank to reveal details of its emergency lending programs to banks during the financial crisis. Get the full story »
Aug. 27, 2010 at 11:07 a.m.
Filed under:
Bank failures,
Banking,
Investing,
Real estate
From the Atlanta Business Chronicle | A new Atlanta-based real estate company will market the assets and loans from Chicago’s failed Corus Bank.
By Reuters
There is no evidence that politics played a role in the government seizure of a Chicago bank owned by the family of the Democratic nominee running for the U.S. Senate seat once held by President Barack Obama, a government watchdog said this week.
On April 23, bank regulators seized Broadway Bank, a community bank with $1.2 billion in assets, and the Federal Deposit Insurance Corp arranged for MB Financial Inc. to assume its deposits.
The move then became embroiled in this year’s campaign season because the bank was owned by the family of Alexi Giannoulias, the first-term Illinois state treasurer and the Democratic nominee in this year’s U.S. Senate race. Get the full story »
By Associated Press
Federal regulators say former Countrywide CEO Angelo Mozilo personally approved mortgages for favored borrowers that violated the company’s policies and lending standards.
The Securities and Exchange Commission had previously accused Mozilo of civil fraud and illegal insider trading. Now, the agency says Mozilo played a direct role in a program for preferential borrowers that has been the focus of congressional ethics inquiries. Get the full story »
Aug. 23, 2010 at 12:58 p.m.
Filed under:
Bank failures,
Banking,
M&A
From the Portland Business Journal
OneCalifornia Bank said it reached a deal to buy ShoreBank Pacific, which is owned by Chicago-based ShoreBank but was not part of Friday’s seizure by the Federal Deposit Insurance Corp.
Aug. 23, 2010 at 10:26 a.m.
Filed under:
Bank failures,
Banking,
Economy,
Policy,
Politics
By Reuters
The viability of community banks is threatened by policies that have conferred “too big to fail” status on larger banks, reducing their cost of capital, Kansas City Federal Reserve Bank President Thomas Hoenig said on Monday.
Hoenig, in prepared testimony to a field hearing of the U.S. House of Representatives Subcommittee on Oversight and Investigations here, said the community bank model was still viable, especially if allowed to compete on an equal footing with larger banks. Get the full story »
Aug. 20, 2010 at 6:10 p.m.
Filed under:
Bank failures,
Banking,
Real estate
By Becky Yerak
An exterior view of ShoreBank at 3401 S. King Drive on the South Side, May 18, 2010. (Chris Walker/Chicago Tribune)
ShoreBank, which billed itself as the nation’s first and leading community development and environmental lender, failed Friday and was acquired by a consortium of big banks, insurers, philanthropic groups and civic-minded individuals.
ShoreBank is the 15th Illinois lender to fail this year, and the 114th to be seized by regulators nationally.
Its failure is expected to cost the Federal Deposit Insurance Corp. $367.7 million. The FDIC is funded by the banking industry. Get the full story »
Aug. 20, 2010 at 2:27 p.m.
Filed under:
Bank failures,
Banking,
Economy,
Government
By Becky Yerak
The group seeking to buy ShoreBank, the ailing South Side lender expected to be seized by federal regulators Friday, plans to name former First Chicago executive Bill Farrow as the chief executive and president of the institution if it succeeds at bidding for certain assets and deposits of the failing bank.
It means that three former First Chicago executives will be running the show if their bid succeeds. Get the full story »
Aug. 19, 2010 at 3:01 p.m.
Filed under:
Bank failures,
Banking,
Government
Officials at troubled ShoreBank see the odds as 50-50 that the lender will fail and be taken over by the government.
Aug. 17, 2010 at 6:05 p.m.
Filed under:
Bank failures,
Banking
By Dow Jones Newswires
The Federal Deposit Insurance Corp. is seeking to block the parent of failed Corus Bank from recouping more than $257 million in tax refunds stemming from the bank’s collapse.
In papers filed Monday with the U.S. Bankruptcy in Chicago, the FDIC, the receiver of the closed Illinois bank, said Corus Bankshares Inc.’s lawsuit against the regulator that seeks to take back those refunds should be tossed out because it intentionally sidesteps federal banking laws.
“Because federal law expressly precludes” the lawsuit Bankshares filed in bankruptcy court, “this action should be dismissed,” the FDIC said in court papers. Get the full story »
