The fizzled condo boom and a Chicago bank

There was a time when lots of small banks, chasing returns, were falling over themselves to get into the Florida condo boom. Some of those banks are now on their heels. Consider Chicago-based Corus, TheDeal.com notes it "built its $4 billion loan book on the back of condominium construction. Not only did management bet the bank on this most speculative and cyclical of activities, it focused on condo projects primarily in southern Florida, as well as in Arizona, Nevada and southern California." 

Of course it was high-risk, but in the boom times it seemed so smart. Last month, Corus agreed to a consent order with the OCC requiring to boost capital and do something about its growing mountain of foreclosed assets. Most assume it is a death decree. Other small lenders that got sucked into the condo boom should take note. 

For more:
- here's the article

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