Inside these posts: FDIC

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Farrow reported to head reconstituted ShoreBank

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 »

FDIC seeks to block Corus parent from tax refunds

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 »

U.S. FDIC says Palos Bank and Trust Co. closed

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 »

FDIC puts out new call for ShoreBank bidders

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 »

Examiner wants subpoena power in WaMu case

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’s financial hole deepens

ShoreBank’s capital deficiency worsened in the second quarter, according to newly submitted financial results to regulators, and the Chicago-based lender now needs to raise at least $190 million just to meet targets set out in March by state and U.S. banking regulators.

The South Side bank has arranged a capital infusion of about $150 million from Wall Street investment firms, big banks, insurance companies and philanthropic groups. It’s hoping that private investment will then make it eligible for about $75 million in bailout funds from the U.S. Treasury Department. Get the full story »

FirstMerit says it’s mostly focused on integration

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 »

PrivateBancorp’s stock up on smaller 2Q loss

PrivateBancorp Inc. stock is up 12.6 percent, to $11.94 a share, in mid-day trading as the Chicago-based parent of PrivateBank posted a narrower-than-expected second-quarter loss and sounded slightly more positive about the economy than one of its rivals did last week.

“The economy is growing but the recovery will be slow and uneven,” Chief Executive Larry Richman said in an earnings conference call. But “I do believe the real estate portion of the economy remains very slow and weak.” Get the full story »

FDIC $250K limit made permanent

From the Baltimore Sun | As part of the Wall Street Reform signed into law this morning by President Obama, federal insurance coverage on deposits at banks and credit unions will be permanently raised to $250,000.

FDIC gets unfettered ability to probe banks

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 »

Corus fights to keep $257M in tax refunds

The parent of Chicago’s Corus Bank has moved to head off a grab by federal regulators at more than $257 million in tax refunds stemming from the bank’s collapse. Get the full story »

GAO cites deficiencies in FDIC internal controls

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 »

Reform bill spares ShoreBank a bailout probe

From Crain’s Chicago Business |  The financial reform bill was stripped of a provision calling for an FDIC examination of all bank bailouts since January 2009, sparing ShoreBank such an investigation.

FDIC deputy: Borrowers need protection

FDIC Deputy Director Robert W. Mooney tells a conference of banking risk managers that U.S. consumers need federal protection from a  financial services industry that has exposed them to inappropriate mortgages,  credit cards and other practices.

Arcola Homestead Savings joins list of failed banks

By Becky Yerak |
Arcola Homestead Savings Bank, which had $17 million in assets and $18.1
million in deposits, was closed today by state and federal banking

The Federal Deposit Insurance Corp. was unable to find another financial
institution to take over the banking operations. Checks to the retail depositors for their insured funds will be mailed

Get the full story »