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Feds Take Over Corus Bank, Vultures Await

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Via the Wall Street Journal: "Federal regulators seized Chicago-based Corus Bank on Friday, marking the first major bank to be undone by deteriorating construction and commercial real-estate loans during the current downturn. The branches and deposits of Corus will be assumed by MB Financial Inc., which has more than $8 billion in assets and over 70 branches in Chicago and its suburbs...But the status of Corus' prize assets is still unclear. The company's delinquent condo loans backed by 111 developments will likely be sold by the FDIC in upcoming weeks. A number of real estate companies and private equity firms have been vying to acquire those assets over in recent months." Just this week, the New York Times called Corus, which backed projects in Southern California, Nevada, and Florida, an "Enabler of Condo Madness." The Wall Street Journal notes that those in competition for Corus's assets include Related Cos, developer of the now-delayed Grand Avenue project. (Apparently Related Cos can afford to buy pieces of Corus, but still can't get sufficient funding to break ground on Grand Avenue?)
· Regulators Seize Corus Bank [WSJ]