Regulators close small Chicago bank

[OhioChick]

Source: AP

AP) – 1 hour ago

WASHINGTON — Regulators on Friday shut down a small bank in Chicago, lifting to 109 the number of U.S. bank failures this year.

The Federal Deposit Insurance Corp. said it was appointed receiver of Ravenswood Bank, which had roughly $264.6 million in assets and $269.5 million in deposits as of June 30.

The bank's assets and deposits will be assumed by Northbrook Bank and Trust Co., based in Northbrook, Ill., the FDIC said. Its branches will reopen on Saturday.

The closure brings to 13 the number of bank failures this year in Illinois.

The failure of Ravenswood Bank is expected to cost the deposit insurance fund $68.1 million.

At 109, the pace of U.S. bank failures this year is running ahead of 2009, already a brisk year for shutdowns. By this time last year, regulators had closed 72 banks. The pace has accelerated as banks' losses mount on loans made for commercial property and development.

Many companies have shut down in the recession, vacating shopping malls and office buildings financed by the loans. That has brought delinquent loan payments and defaults by commercial developers.



Read more: http://www.google.com/hostednews/ap/article/ALeqM5gg9RS-ZvzlfzrcnujKaEDMXrYyYgD9HEA0J80

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http://www.fdic.gov/bank/individual/failed/banklist.html

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