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Corus Bank (Finally) Fails

|Includes: Corus Bankshares Inc. (CORS)

On 9/11/09, CORS was closed by the FDIC, and deposits were taken over by MB Bank & Trust.

CORS sank because of too many bad condo conversion and development loans outside of its service area--NV, AZ, CA, FL--even though the bank was headquartered in MN.

It also offered some of the highest interest rates on deposits of any bank in the country.

For the last 3 quarters, its interest expense exceeded its interest income.

Nearly 75% of its portfolio was nonperforming, according to the most recent financial statements (March 2009--2nd quarter financials were late).

The FDIC estimates the cost of the closure at $1.2 billion.

I'm surprised it lasted this long.