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U.S. regulators on Friday closed Palos Bank and Trust Company in Illinois, the Federal Deposit Insurance Corp said, marking the 110th U.S. bank failure so far this year and the 14th in Illinois.
The FDIC said Palos Bank and Trust Company had $493.4 million in assets. First Midwest Bank of Itasca, Illinois, will assume the deposits of the failed institution. Get the full story »
The Federal Deposit Insurance Corp. has told ShoreBank that it has begun the process in which it ultimately seeks bidders for the undercapitalized bank, according to a report Tuesday afternoon from Fox Business.
Brian Berg, a ShoreBank spokesman, would neither confirm nor deny the report that the bank’s days as an independent institution are numbered. The bank continues to try to look at options to raise capital to stave off seizure by regulators. Get the full story »
U.S. regulators closed Ravenswood Bank of Chicago, bringing the 2010 total of failed banks to 109.
The Illinois Department of Financial and Professional Regulation closed the bank, which had $269.5 million in total deposits, $211 million in loans and two branches. Northbrook Bank and Trust Co., based in Northbrook, Ill., and a unit of Wintrust Financial Corp., agreed to acquire $190 million of assets and $120 million of deposits, according to Wintrust and the FDIC.
The FDIC said the failure is expected to cost the agency’s deposit-insurance fund about $68.1 million.
The independent examiner appointed to review claims and assets in Washington Mutual’s bankruptcy case is seeking subpoena power.
The examiner made the request Friday in filing his proposed work plan in Delaware bankruptcy court. A hearing on his plan will be held Tuesday. Get the full story »
ShoreBank Corp., the unprofitable Chicago lender to low-income communities, may be forced out of business after failing to win $75 million of federal bailout funds, three people with direct knowledge of the matter said.
Republicans accused Democratic Senate candidate Alexi Giannoulias of lending money to a corrupt political insider, although Giannoulias said he left his family’s bank before the loan was issued and the insider wasn’t listed on loan documents.
The Chicago Sun-Times reported Monday that Broadway Bank lent $22.75 million to a development company in 2006. One of the company’s owners was Antoin “Tony” Rezko, who was then tied up in a corruption probe that ultimately led to his conviction for shaking down people who wanted to do business with the state.
Wintrust Financial Corp. posted lower-than-expected profits in the second quarter, partly because the $13.7 billion-asset bank holding company had to set aside more money for loan losses due to a fraud in its premium financing unit.
For the second quarter, net income was $13 million, or 25 cents a share, compared with $6.5 million, or 6 cents a share, in the same period a year ago. Get the full story »
FirstMerit Bank, which over the past year has entered the Chicago market through three acquisitions, said it is continuing to keep its eyes open for deals, but that its main focus right now is integrating its operations. Get the full story »
Shares of MB Financial fell 6.9 percent in mid-day trading, after the Chicago-based bank reported a threefold rise in the money it set aside for bad loans and warned that the economy will remain weak and volatile well into 2011 and possibly into 2012.
MB Chief Executive Mitch Feiger noted during an earnings conference call with analysts that the new federal financial reform bill is “relatively benign,” particularly for banks with assets of less than $15 billion. But he said the bank is a “little worried” about a provision that would lengthen an already “painfully slow” foreclosure process in Cook County. Currently, it can take 18 months to 24 months from the time that a bank initiates a foreclosure until the time it takes possession of the property. Get the full story »
Federal bank regulators have agreed to give the Federal Deposit Insurance Corp. unlimited authority to investigate banks, clarifying the agency’s power that was in question during the financial crisis.
The FDIC’s board on Monday approved the agreement between the insurance agency and regulators at the Federal Reserve and Treasury Department. It clearly spells out the FDIC’s authority to make special examinations of banks. It was approved 5-0. Get the full story »
Democratic U.S. Senate candidate Alexi Giannoulias lost about $2.7 million last year in the collapse of his family’s Broadway Bank, according to tax returns his campaign released Friday.
From Crain’s Chicago Business | ShoreBank reportedly still could receive TARP funds, though Congress ended the bank bailout program to help pay for financial reform. Banks that applied before June 25 would still be eligible, according to an unnamed administration official.
A government watchdog has detected key deficiencies in the Federal Deposit Insurance Corp.’s internal controls that led to errors in the agency’s 2009 draft financial statements for its deposit insurance fund.
The errors, which involve the FDIC’s estimates of the loss-share transactions it has used to resolve bank failures, have been corrected. Get the full story »
From WREX TV | Harris Bank, which took over Amcore Bank on April 23, 2010, announced plans to close 18 former Amcore branches and eliminate jobs as part of its buyout reorganization.
