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from Rolfe Winkler:

BlogArt: Corus, R.I.P.

On Tuesday, Lingling Wei and Anton Troianovski published an interesting article in the WSJ about the auction process surrounding Corus Bank's busted condo loans. Readers who saw my recent post on commercial real estate prices are aware that not many transactions are taking place, making it difficult to get a good sense for CRE prices. These condo loan auctions will provide very important data points in that regard...

About 10 investors are expected to submit bids to the Federal Deposit Insurance Corp. by Friday for $5 billion in condominium loans and other property held by the failed Corus Bank, in a key test of U.S. commercial real-estate values.

The government-run auction, with loans backed by more than 100 real-estate developments, is the largest bulk sale of commercial-property assets since the financial crisis erupted. Bidders are looking at some of the highest-profile condo projects in the U.S., scattered from the waterfront Paramount Bay in Miami to Juhl in downtown Las Vegas.

On the way to O'Hare last Sunday, I passed by an old Corus branch, now re-branded MB Financial...

from Rolfe Winkler:

Corus, gone

Headlining this week's bank failures is Corus out of Chicago. Condo loans in Florida and other bubbly states did 'em in. There's an odd item in the press release. It lists the bank's deposits as "approximately" $7 billion. I can't remember seeing that modifier in a bank failure press release. When you read enough of them, the littlest things jump out at you...

#90

    Failed bank: Corus Bank, Chicago IL Acquiring bank: MB Financial Bank, Chicago IL Vitals: As of June 30th, assets of $7 billion, deposits of "approx." $7 billion DIF damage: $1.7 billion

From WSJ's article on Corus' failure: "More than half of the bank's $3.9 billion in condo construction loans were in nonaccrual or foreclosure in April."

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