ShoreBank Corp., the unprofitable Chicago lender to low-income communities, may be forced out of business after failing to win $75 million of federal bailout funds, three people with direct knowledge of the matter said.
Filed under: Banking
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GOP criticizes Ill. Senate candidate for bank loan
Republicans accused Democratic Senate candidate Alexi Giannoulias of lending money to a corrupt political insider, although Giannoulias said he left his family’s bank before the loan was issued and the insider wasn’t listed on loan documents.
The Chicago Sun-Times reported Monday that Broadway Bank lent $22.75 million to a development company in 2006. One of the company’s owners was Antoin “Tony” Rezko, who was then tied up in a corruption probe that ultimately led to his conviction for shaking down people who wanted to do business with the state.
State Farm Bank adds iPhone deposit app
The $15.6 billion-asset State Farm Bank has introduced a point-and-shoot deposit application for customers with iPhones.
The Bloomington-based bank, which is affiliated with the State Farm Insurance Cos., said its customers can deposit checks into their account from their phones. Get the full story »
Nuveen to pick up FAF Advisors from U.S. Bancorp
Chicago-based Nuveen Investments Inc., which serves institutions and wealthy investors, said U.S. Bancorp will receive a 9.5 percent stake in the company and an $80 million cash payment in exchange for the long-term asset business of U.S. Bancorp’s FAF Advisors.
FAF, which manages $25 billion of long-term assets and is adviser of the First American Funds, will be combined with Nuveen Asset Management, which manages $75 billion in municipal fixed income assets and is adviser of the Nuveen funds. Get the full story »
Cole Taylor Bank parent blames loss on real estate
The parent of Cole Taylor Bank lost $48.3 million, or $3.35 a share, in the second quarter, and blamed persistent weakness in the Chicago-area real estate market for its worsening numbers. Get the full story »
July 28, 2010 at 10:16 a.m.
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Filed under: Bank failures, Banking, Earnings, Stock activity Fraud incident hurts Wintrust Financial results
Wintrust Financial Corp. posted lower-than-expected profits in the second quarter, partly because the $13.7 billion-asset bank holding company had to set aside more money for loan losses due to a fraud in its premium financing unit.
For the second quarter, net income was $13 million, or 25 cents a share, compared with $6.5 million, or 6 cents a share, in the same period a year ago. Get the full story »
FirstMerit says it’s mostly focused on integration
FirstMerit Bank, which over the past year has entered the Chicago market through three acquisitions, said it is continuing to keep its eyes open for deals, but that its main focus right now is integrating its operations. Get the full story »
PrivateBancorp’s stock up on smaller 2Q loss
PrivateBancorp Inc. stock is up 12.6 percent, to $11.94 a share, in mid-day trading as the Chicago-based parent of PrivateBank posted a narrower-than-expected second-quarter loss and sounded slightly more positive about the economy than one of its rivals did last week.
“The economy is growing but the recovery will be slow and uneven,” Chief Executive Larry Richman said in an earnings conference call. But “I do believe the real estate portion of the economy remains very slow and weak.” Get the full story »
Citi tells mobile bankers to download new app
From the Wall Street Journal | Citigroup is telling mobile banking customers to upload a new iPhone app to avoid a security flaw in the old version.
ShoreBank affecting state’s prepaid tuition program
From Crain’s Chicago Business | The Illinois Student Assistance Commission, the state’s prepaid college tuition program, is caught up in the problems of ShoreBank.
Stress tests: Focus is on banks that barely passed
So few banks failed Europe’s long-awaited stress tests on Friday that investors will likely focus instead on the dozen or so banks that just scraped through when the markets reopen next week. Get the full story »
Pay czar Feinberg blasts banks’ bonus payments
Kenneth Feinberg on July 22 in Washington. (Alex Wong/Getty Images)
Pay czar Kenneth Feinberg said on Friday that 17 banks overpaid executives in late 2008 and early 2009 by about $1.6 billion during the financial crisis, when taxpayers’ money was being used to support them.
He proposed that financial firms adopt policies that would let them “restructure, reduce or cancel” bonus and other special payments to executives in future crises but said he had no authority to force banks to give back past overpayments. Get the full story »
July 22, 2010 at 11:35 a.m.
Filed under: Bank failures, Banking, Chicago executives, Earnings, Economy, Real estate MB Financial stock drops after earnings disappoint
Shares of MB Financial fell 6.9 percent in mid-day trading, after the Chicago-based bank reported a threefold rise in the money it set aside for bad loans and warned that the economy will remain weak and volatile well into 2011 and possibly into 2012.
MB Chief Executive Mitch Feiger noted during an earnings conference call with analysts that the new federal financial reform bill is “relatively benign,” particularly for banks with assets of less than $15 billion. But he said the bank is a “little worried” about a provision that would lengthen an already “painfully slow” foreclosure process in Cook County. Currently, it can take 18 months to 24 months from the time that a bank initiates a foreclosure until the time it takes possession of the property. Get the full story »
Bernanke links further Fed easing to jobs
The Federal Reserve will try to push borrowing costs even lower if the job market continues to languish, Fed Chairman Ben Bernanke said Thursday, offering his clearest blueprint yet for possible additional monetary easing.
After three quarters of solid growth, the U.S. economy has been losing steam, with firms still reluctant to hire and the housing sector seemingly unable to exit a prolonged rut. Get the full story »
