A recently released government report is shedding more light on the spectacular failure a couple of years back of Corus Bank, an institution with its roots as River Forest State Bank on Lake Street. The gracious one-time flagship is now an MB Financial branch.
Back in 2009, the feds seized Corus Bank and its $2 billion in deposits, and the institution reopened as MB Financial, including the branch at 7727 Lake St. in River Forest.
According to a recently released government audit of Corus’ $7 billion in assets, the bank took far too many gambles on super-sized risky commercial loans. Those included a development 5 to 10 miles off the Las Vegas strip, and Florida developments “surrounded by car dealerships instead of water.” Those failed loans resulted in a $780 million loss to the FDIC, according to the Department of the Treasury Report.
