Will FDIC Closing Of 9 FBOP Banks Stop Funding Of Construction Loans?

Posted on November 2, 2009 by Joshua Glazov
  • Email This
  • Print
  • Comments
  • Share Link

ParkNationalBankBuilding-Jul07-002a.jpgBecky Yerak at the Chicago Tribune reports that the FDIC just seized 9 banks operated by FBOP Corporation, including Park National Bank in Oak Park, Illinois.

Park National's construction related initiatives include:

  • Lending to redevelop 200 acres in the Pullman neighborhood
  • Development and construction lending for the Christ the King Jesuit College Prep school and the Chicago Jesuit Academy

According to the FDIC's press release, U.S. Bank, NA from Minneapolis has entered into a Purchase and Assumption Agreement with the FDIC to buy the deposits of FBOP banks and ensure continued banking services for their depositors.

usbancorp_logo.JPGIt's not clear yet whether U.S. Bank will assume and continue funding construction loans, lines of credit and other un-disbursed loan obligations of the FBOP banks. Borrowers are standing-by to see whether that happens or whether the FDIC will stop funding and repudiate their loans.

Tags: , ,
Trackbacks (0) Links to blogs that reference this article Trackback URL
Comments (0) Read through and enter the discussion with the form at the end
Post A Comment / Question Use this form to add a comment to this entry.







Remember personal info?
Send To A Friend Use this form to send this entry to a friend via email.