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Home | Daily Dose | Illinois Bank Shuts Its Doors
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Illinois Bank Shuts Its Doors

broken-bank

The fallout of the financial crisis caught up to another bank over the weekend, resulting in a shutdown by federal regulators.

The Office of the Comptroller of the Currency (OCC) announced on Friday the closure of Chicago-based GreenChoice Bank. The recently shuttered bank is the second to fall in Illinois in the past two months and the 14th FDIC-insured institution to close so far this year.

GreenChoice, which had a reputation in the region for its work in making its operations more sustainable and environmentally friendly, was brought down by losses as a result of rising defaults following the financial meltdown, with "no reasonable prospect that the institution will become adequately capitalized" again, OCC said in a statement.

OCC's release also says the bank "had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices."

To protect customers, GreenChoice's deposits—totaling an estimated $71.0 million as of Q1—have been assumed by Providence Bank in South Holland, Illinois, according to FDIC. Providence has also agreed to purchase $67.7 million of GreenChoice's assets, with the remaining assets held by FDIC.

FDIC estimates its Deposit Insurance Fund will take a $14.2 million hit as a result of the latest collapse.

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About Author: Tory Barringer

Tory Barringer
Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.

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