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Corus Bank Pegged As "Enabler of Condo Madness"*

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The story is about Florida, but it also concerns Los Angeles: The New York Times on troubled Chicago-based Corus Bank, which provided loans some of the biggest projects (Terranea Resort, Concerto, Evo, Solair) in the Los Angeles. " "Whatever the outcome, Corus will go down as the great enabler of condo madness, and its travails are a harbinger of the pain yet to come in the troubled world of commercial real estate. More than any other condo lender, Corus epitomized the easy lending and lax oversight of the go-go years — and the pain of the ensuing bust. Its share price, which was nearly $13 in February of 2008, has plummeted into the land of penny stocks, closing at 25 cents Wednesday." The article goes on to cite what many people have been saying all along--that's there a whole new wave of commercial defaults coming. Says one expert: "Banks now are worried that office buildings, hotels and malls in areas hardest hit by the downturn are going bad too.”

Since 2002, some of the loans given out by Corus (all info via their press release section)

West Ocean Phase II, $53.176 million
Evo, $141.375 million
Solair, $127 million
Glencoe Lofts, $39.2 million (taken back by Corus)
Wilshire Boulevard Condominiums, $81.8 million
120 Rose Street, $35.2 million
Concerto, $190 million
G2 Lofts, $46.83 million
Terranea Resort, $150 million (Corus started foreclosure proceedings)
Lofts at Studio City ,$19.692 million
Cove, Marina Del Rey, $80 million
Little Tokyo Lofts, $41.5 million
Sunset & Vine, $72 million
*Bank Lofts, San Pedro, $25 million
· In Florida, Vestiges of the Boom [NY Times]