BlogArt: Corus, R.I.P.

September 24, 2009

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…


I wonder: Is the sun rising or setting on the U.S. banking system?


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IIRC there was a similar moment in mid-2007 when we were going to auction off some of the assets in the shadow banking system. When they peeked under the lid of Pandora’s Box and saw what they were about to “discover” they slammed the lid down as hard as they could.

I’m not sure if that involved the Bear hedge funds that collapsed on 6/20 ’07, or if it was a few weeks later.

Posted by John McLeod | Report as abusive

yeah, but corus’s portfolio is pretty well known and fairly basic. Its just condos and condo construction projects. Nothing exotic, and something that can be bid on by something other than banks and adventurous hedge funds.

Posted by Andrew | Report as abusive