FDIC closes Broadway Bank, Amcore, two others

Fri. April 23, 2010 12:00 AM by Chicago Breaking News

Chicago, IL - Banking regulators seized Broadway Bank, the family-run lender that helped launch U.S. Senate candidate Alexi Giannoulias' political career. Giannoulias worked for his father at Chicago-based Broadway before entering politics, and the bank's struggles in recent years with real estate loans gone bad have weighed on Giannoulias' Democratic bid for higher office.

The government said Broadway's four branches will reopen Saturday as branches of MB Financial Bank.

In other actions by the FDIC, the government took over Rockford-based Amcore Bank N.A., and sold certain of its assets and liabilities to Harris Bank.

Citizens Bank & Trust Co. of Chicago, with assets of $77.3 million, was also seized and is being acquired by Republic Bank of Chicago in Oak Brook.

MB Financial is also buying failed New Century Bank, whose headquarters is on Ontario near the Interstate ramp. New Century has assets of $485.6 million, and its failure will cost the Federal Deposit Insurance Corp. $125.3 million.

Written by: Becky Yerak

Article provided in partnership with ChicagoBreakingNews.com.