According to the press release, the costs to the Deposit Insurance Fund of the bank's failure was $64.1 million. Premier Bank is the 15th bank to fail in the country this year, the agency said, and the third in Illinois.
International Bank is located at 5069 N. Broadway in Chicago with branches in Chinatown, Stone Park, Bellwood and Des Plaines.
The Federal Deposit Insurance Corporation sued the former chief executive of Washington Mutual and two of his top lieutenants, accusing them of reckless lending before the 2008 collapse of what was the nation’s largest savings bank.
The civil lawsuit, seeking to recover $900 million, is the first against a major bank chief executive by the regulator and follows escalating public pressure to hold bankers accountable for actions leading up to the financial crisis.
new F.D.I.C. rules require banks to clearly explain overdraft costs. Most important, if a customer is charged a fee for overdrawing his account more than 6 times in a 12-month period, the bank must offer a less costly alternative, like a reasonably priced line of credit or linking the card to a savings account.
These regulations will bring basic fairness to the system. But banks worry about profits, and some are threatening to change their charters so they can shop for a less rigorous regulator than the F.D.I.C.
A race to the regulatory bottom would be a disastrous idea. Anyone who doubts that should recall what happened when the bank’s regulator of choice, the Office of the Comptroller of the Currency, failed to rein in reckless mortgage lending and actually blocked the states from doing the job.
Click on the following for more details: Debit Card Predators - NYTimes.com
Thanks to a recent posting by City Barbs [http://www.citybarbs.com/?p=6007] this business news regarding Castle Bank has just come to light. Much of this has not been covered by the local news media.
In June 2009 the Comptroller of the Currency [OCC] determined that the “Bank has engaged in unsafe and unsound banking practices relating to its credit underwriting and administration, commercial real estate risk management, problem loan management, credit risk ratings, allowance for loans and lease losses, and Bank Secrecy Act program.” OCC’s formal “written agreement” with Castle Bank is available at : .http://www.occ.gov/static/enforcement-actions/ea2009-107.pdf The various loan review and administration procedures that were required by that agreement are listed in that document.
The written agreement was signed by the Directors of the then Castle Bank, NA, DeKalb, Illinois and included the following notables: John W. Castle (DeKalb), Jack D. Franks (Woodstock, State Representative of the 63rd District) and Herbert H. Franks (Marengo, attorney, father of Jack D.). Mr. Castle is a long time Director of First National Bank of Omaha and First National of Nebraska, however currently (2010) he does not serve on either of those boards. The Franks have been directors at Castle Bank since their family owned bank, First National Bank of Marengo merged with Castle Bank. Castle Bank was founded in 1856 in Sandwich, Illinois and was owned by the Castle family for generations.
This enforcement action (EA#2009-107) was terminated on 11-1-2010; see: http://www.occ.gov/news-issuances/news-releases/2010/nr-occ-2010-144.html . This termination occurred after the merger of Castle Bank into First National Bank of Omaha.
Castle Bank of Illinois (current division name for the bank) has its main office in DeKalb with branches in Belvidere, DeKalb, Harvard, Huntley, Lake in the Hills, Marengo, Oswego, Plano, Sandwich, Sugar Grove, Sycamore, and Yorkville.
Castle Bank is a division of First National Bank of Omaha, a subsidiary of First National of Nebraska. First National Bank of Omaha has 87 locations in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas (see map), 251 ATMs, 3,500 employees and $13.7 billion in assets.
The largest privately owned banking company in the United States, Lauritzen Corporation, has controlled First National Bank of Omaha and First National of Nebraska for the past decade. National City Corporation and Lauritzen Corporation were the two largest banking organizations denied TARP [Troubled Asset Recovery Program] funds in 2008 from the U.S. Treasury Department.
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Maritime Savings Bank, based in West Allis, Wis., with assets of $350.5 million.
This is just a legal technicality—AMCORE’s holding company will be gone.
In the Aug. 19 Chapter 11 filing in U.S. Bankruptcy Court in Chicago, Rockford-based Amcore Financial Inc., whose bank unit was acquired from the Federal Deposit Insurance Corp. by Chicago-based Harris N.A. in April, listed assets of $7.2 million and liabilities of $75.4 million.
The biggest creditors were holders of subordinated debt totaling $57 million and J. P. Morgan Chase & Co., Amcore's lender, which listed a claim of $11.9 million, according to the filing.
Amcore Financial files for Chapter 11 | Finance | Crain's Chicago Business
ShoreBank, the South Side lender that carved out a national reputation by successfully lending in low-income urban neighborhoods for three decades, was seized by regulators Friday after an extraordinary rescue effort featuring the nation’s largest financial firms fell short.
Federal Deposit Insurance Corp. For the FDIC, the estimated hit to its insurance fund from the failure will be $367.7 million.
Palos Bank and Trust Co., based in Palos Heights, Ill., with $493.4 million in assets and $467.8 million in deposits. First Midwest Bank, based in Itasca, Ill., agreed to assume the assets and deposits of the failed bank.
The pace has accelerated as banks' losses mount on loans made for commercial property and development. Many companies have shut down in the recession, vacating shopping malls and office buildings financed by the loans. That has brought delinquent loan payments and defaults by commercial developers.
Ravenswood Bank on Friday became the 23rd Chicago-area bank to fail since the financial crisis began claiming local banks at the start of 2009.
As of June 30, 40% of its loans were to commercial and residential developers or to investors in commercial real estate.
Ravenswood Bank fails, Wintrust unit is the buyer | Finance | Crain's Chicago Business
The FDIC and Harris National Association entered into a loss-share transaction on $2.0 billion of Amcore Bank, National Association's assets. Harris National Association will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers….
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $220.3 million. Harris National Association's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives.
Click on the following for more details: FDIC: Press Releases - PR-84-2010 4/23/2010
Chicago-based Harris National Association agreed to acquire Amcore Bank's deposits….The failure of AMCORE is expected to cost the FDIC's deposit insurance fund … $220.3 million;
Click on the following for details about other bank failures: News from The Associated Press
Click on the following for more details: Feds seize AMCORE; Chicago’s Harris takes over - - BusinessRockford.com
Harris N.A. has submitted a bid with the Federal Deposit Insurance Corp. to purchase all or part of Amcore Bank, according to people familiar with the matter.
It’s unclear whether Harris, Chicago’s third-largest bank, has been joined by other bidders
Harris is bidding on teetering Amcore Bank | Crain's Chicago Business
The end maybe soon. Many newspapers are talking about it.
Williams-Young did confirm that the FDIC recently rented office space at 200 N. Martingale Road in Schaumburg, where "as many as 500 nonpermanent staff and contractors" will work "to manage receiverships and liquidate assets from failed financial institutions, primarily located in Midwestern states."
FDIC spokeswoman LaJuan Williams-Young said Tuesday that her agency cannot comment on the situation. The comptroller of the currency and FDIC act secretively when a bank is taken over involuntarily, typically not even announcing that to the bank's employees until closing time on a Friday night.
Amcore Bank may be on auction block for takeover :: The Courier News :: Local News
The most troubled Illinois banks are 16 that were undercapitalized as of Dec. 31. Since then, two have failed and one was acquired. Only five were undercapitalized at the end of 2008.
those that the regulator is trying to line up buyers for include Amcore Bank, Broadway Bank, Lincoln Park Savings Bank, Wheatland Bank, Citizens Bank & Trust Co. of Chicago and New Century Bank.
The FDIC could do "six or seven now, and do another six or seven" later, said a person familiar with the bid process.
Click on the following for more details:
FDIC seeking bids on half-dozen struggling Chicago-area banks - chicagotribune.com
Bids for Amcore are due April 15 to the Federal Deposit Insurance Corp., Crain’s has learned.
Click on the following for more details: Feds Seek Bidders for AMCORE Bank
Friday's closure capped months of speculation about the 96-year-old bank's future. Questions began when state and federal regulators last year found the bank was undercapitalized as a result of its recession-battered commercial real-estate loan portfolio. The bank had unsuccessfully sought a buyer in hopes of avoiding failure.
The Bank of Illinois had $211.7 million in assets, $198.5 million in deposits and about 45 employees at the end of 2009….Heartland's was one of seven bids submitted for the bank from a group of 394 potential bidders identified by the FDIC,
The failure cost the FDIC's Deposit Insurance Fund $53.7 million.
Click on the following for more details: Bank of Illinois fails; Heartland takes over
According to Crain’s, developer Kryzsztof Karbowski defaulted on the loan in January of 2009. It’s one of at least 65 foreclosure suits in Cook County against Karbowski.
Last week, the Algonquin Courier News reported that Algonquin officials planned to levy fines up to $50,000 against AMCORE for building code violations at an unfinished condo project.
Click on the following for more details: Get Real » AMCORE properties making headlines
Demetris Giannoulias said he doesn't expect the government to drag its feet on shutting the bank if capital-raising efforts come up short.
From 2004 through 2006, Broadway was one of the country's most profitable community banks….Broadway relied almost strictly on real estate deals to make money….During 2007 and 2008, Broadway paid the family about $70 million in dividends. Is the family in a position to bail the bank out?
Click on the following for more details: Alexi Giannoulias: Broadway Bank troubles hurt Alexi Giannoulias’ Senate campaign - chicagotribune.com
4th Quarter Earnings: 
note of concern in the report: Reducing AMCORE’s assets will take the company only so far, and raising capital remains critical. “Failure to do so during 2010 may impact the company’s ability to continue as a going concern.”
