New City Bank Fails; FDIC Takes It Over [Chicago South Side alderman, Beavers,indicted tax evasion]

Chicago Business ^ | March 09, 2012 | Steve Daniels

[fight_truth_decay]

(Crain's) — New City Bank, the South Michigan Avenue lender for which indicted Cook County Commissioner William Beavers is vice chairman, was closed today by state banking regulators.

The Federal Deposit Insurance Corp. couldn't find another bank to take on the assets and deposits, and instead will pay back depositors up to the $250,000 limit at which the FDIC insures deposits.

New City had $72.4 million in deposits and $71.2 million in assets as of year-end 2011.

The bank was launched in 2003 by a group of local investors, including Mr. Beavers, a South Side alderman at the time. Mr. Beavers, who was indicted last month on charges of tax evasion, holds a small stake in the bank, which now will be wiped out. He denies any wrongdoing.

...including loans to U.S. Rep. Bobby Rush, D-Chicago, who ran into brief trouble with New City a few years ago over non-payment of property taxes on a home on which the bank held a mortgage.

[fight_truth_decay]

[Source]Cook County Commissioner William "Big Hog Nuts" Beavers was indicted -charges he failed to pay taxes on tens of thousands of dollars in campaign funds. Beavers said he was indicted after he refused to wear a wire on fellow Commissioner John Daley.... Brother of Bill Daley the President's X-Chief of Staff.

[The Duke]

I guess with all the liabilities they are sitting on you can’t even give away a bank these days(?)

[SunkenCiv]

Thanks fight_truth_decay.

[knarf]

Somebody PLEASE connect this to zero ... or better yet ... the wookie.

[Brilliant]

“U.S. Rep. Bobby Rush, D-Chicago, who ran into brief trouble with New City a few years ago over non-payment of property taxes on a home on which the bank held a mortgage.”

He’s a Congressman. Why the bleep does he need to pay taxes?

[itssme]

William “hog with the big nuts” Beavers is going to be nailed. The above nickname is one he gave himself. What a pig, literally. It's one down, and maaaannny to go in the never ending fight to clean this city up. Old time politician Paddy Bauer once said, “Chicago ain't ready for reform.”

Don't know about the politicians, but the citizens sure are.

[Milhous]

There’s a story that during Rome’s fall a magistrate cynically allowed a convicted man the choice between getting executed or taking over an abandoned estate (and its property taxes).