Peter Pays Paul

Inside commercial hard money lending.

4 Feb

Corus Bank Woes

Category: Commercial Real Estate, Credit Crisis, Real Estate Finance

According to the WSJ.com in Condo King Corus Weighs Its Options, Corus Bankshares, Inc.

is one of the few lenders to report that the Treasury Department intends to reject the bank’s application for funds from the Troubled Asset Relief Program, or TARP.

Ouch! The bank must be in trouble if they are admitting that they were rejected by the Treasury Department.

Corus has about $2 billion in unfunded construction commitments and that in the event of a federal takeover, regulators wouldn’t be obligated to fund these commitments.

This would be a major disaster. The article doesn’t specify how many projects this is spread over, but imagine if all of them were forced to stop mid-project.

Corus funded condo projects nationwide could come to a standstill. Depending on the FDIC’s decision, some of these projects could languish incomplete for a long time.

This is shaping up to be a huges mess.

Tags: corus bankshares inc, lenders, TARP, Treasury, treasury department, WSJ


Share on Twitter

Related Posts

Posted Wednesday, February 4th, 2009 at 11:41 am
Filed Under Category: Commercial Real Estate, Credit Crisis, Real Estate Finance
You can leave a response, or trackback from your own site.

This website uses IntenseDebate comments, but they are not currently loaded because either your browser doesn't support JavaScript, or they didn't load fast enough.

0

Leave a Reply