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Chicago's Corus Bank Fails as Condo Loans Sour

Two smaller banks banks also seized over the weekend

By Truman Lewis
ConsumerAffairs.com

September 13, 2009

That leaves the Federal Deposit Insurance Corporation (FDIC) with about $4 billion in damaged assets, which the agency hopes to sell within the next 30 days. The total includes about $1 billion worth of construction loans in South Florida, most of them on condominium towers that have been sitting idle in the moribund real estate market.

Corus' failure is another indication that smaller and mid-sized banks are still suffering as commercial loans and mortgages go south. Corus is the sixteenth bank to fail in Illinois this year.

The Corus Bank branches will reopen on their next normally scheduled business day as branches of MB Financial Bank. Depositors of Corus Bank will automatically become depositors of MB Financial Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until MB Financial Bank can fully integrate the deposit records of Corus Bank.

Depositors of Corus Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

Customers who have questions about the transaction can call the FDIC toll-free at 1-800-823-5017. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties can also visit the FDIC's Web site.

Venture Bank

Also closed by regulators Friday was Venture Bank, Lacy, Washington. First-Citizens Bank & Trust Company, Raleigh, North Carolina, will assume all of the deposits of Venture Bank.

The eighteen branches of Venture Bank will reopen during normal business hours as branches of First-Citizens Bank & Trust Company. Depositors of Venture Bank will automatically become depositors of First-Citizens Bank & Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until First-Citizens Bank & Trust Company can fully integrate the deposit records of Venture Bank.

Depositors of Venture Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

Customers who have questions about the transaction can call the FDIC toll-free at 1-800-430-7974. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT. Interested parties can also visit the FDIC's Web site.

Brickwell Bank

The FDIC also took over Brickwell Community Bank, Woodbury, Minnesota. CorTrust Bank N.A., Mitchell, South Dakota, will assume all of the deposits of Brickwell Community Bank.

The sole branch of Brickwell Community Bank will reopen as a branch of CorTrust Bank. Depositors of Brickwell Community Bank will automatically become depositors of CorTrust Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until CorTrust Bank can fully integrate the deposit records of Brickwell Community Bank.

Depositors of Brickwell Community Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

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