Regulators seize construction lender Corus BankSubmitted by ZeroFiction on Fri, 09/11/2009 - 20:45
CHARLOTTE, N.C. (AP) -- Federal regulators on Friday said they seized Corus Bancshares Inc., a major Chicago-based lender to condominium, office and hotel projects, adding it to the long list of banks that have succumbed this year to the recession and waves of loan defaults.
The Federal Deposit Insurance Corp. took over Corus Bank, which had $7 billion in total assets, and its deposits. The deposits will be assumed by MB Financial Inc., which is also based in Chicago.
Corus Bank's 11 branches will open on their next normally scheduled business day as branches of MB Financial Bank. Regular deposit accounts are insured up to $250,000.
The closure of Corus Bank, one of the largest banks to fail this year, will cost the FDIC $1.7 billion.