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Corus Faces Deadline

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The Wall Street Journal reports that Chicago-based Corus Bank, which backed $580 million in condo construction loans in Los Angeles (including a $190 million loan to Concerto), has until June to either sell itself or raise $390 million in capital. If the bank goes under, it will rank as the "largest bank failure this year by assets and the fourth largest of the current downturn" according to the paper. Additionally, other developers, including Related Cos., are reportedly interested in buying some of the assets of the company, according the paper: "Analysts say that Corus's loans could be attractive because they weren't syndicated or sliced up into securities. As a result, foreclosures on the properties wouldn't be subject to lawsuits from other lenders. In addition, many developments financed by Corus are high-quality properties in major metropolitan markets." [WSJ]