U.S. regulators announced the failure of an Illinois bank Friday, the fourth in that state to be shuttered this year. Get the full story »
Inside these posts: Bank failures
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GAO cites deficiencies in FDIC internal controls
A government watchdog has detected key deficiencies in the Federal Deposit Insurance Corp.’s internal controls that led to errors in the agency’s 2009 draft financial statements for its deposit insurance fund.
The errors, which involve the FDIC’s estimates of the loss-share transactions it has used to resolve bank failures, have been corrected. Get the full story »
Midwest Bank fails; FirstMerit to take over
By Becky Yerak | Midwest Bank, a $3.2 billion-asset lender that was among the first community banks to receive federal bailout funds, was seized by U.S. banking regulators Friday after failing to raise the capital it needed to stay independent.
Its assets, deposits and branches will be taken over by Akron, Ohio-based FirstMerit. The failure of Midwest Bank, which is part of publicly traded Midwest Banc Holdings of Melrose Park, is expected to cost the Federal Deposit Insurance Corp., which is financed by insurance premiums paid by banks, $216.4 million.
It’s the 11th Illinois bank failure in 2010; in 2009, the state saw 21 banks collapse. On Thursday the Tribune reported that FirstMerit was the frontrunner in the bidding.
