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Regulators seize Corus Bank, a major lender to condo and hotel developers

The cost to the FDIC will be about $1.7 billion. The bank had sustained heavy real estate loan losses.

September 12, 2009|Associated Press

Regulators on Friday seized Corus Bank, a major lender to condominium, office and hotel developers, adding it to the long list of banks that have succumbed to waves of loan defaults.

The Federal Deposit Insurance Corp. took over Corus, a unit of Chicago-based Corus Bancshares Inc. The bank had $7 billion in assets.

Corus Bank's 11 branches will reopen as branches of Chicago-based MB Financial Bank, which agreed to assume Corus' deposits.

The closure of Corus will cost the deposit insurance fund $1.7 billion, the FDIC estimated.

Corus was staggering for weeks under the weight of bad real estate loans. Its collapse had been anticipated.

Regulators closed two other banks Friday, one in Minnesota and one in Washington state.

The three closures bring to 92 the number of banks that have failed this year.

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