Federal regulators close Strategic Ca...

Federal regulators close Strategic Capital Bank

There are 14 comments on the Chicago Tribune story from May 22, 2009, titled Federal regulators close Strategic Capital Bank. In it, Chicago Tribune reports that:

Champaign-based Strategic Capital Bank was closed Friday by state and federal banking regulators, becoming the fourth Illinois bank to fail in Illinois this year and the 35th nationally.

Join the discussion below, or Read more at Chicago Tribune.

the Chicago way

Champaign, IL

#2 May 22, 2009
Why didn't the local newspaper
The News-Gazette
has news of this? Cease and desist order? Not in that newspaper.
The News-Gazette has become
a cheerleader for gov't and business

sad.
BHSS

West Des Moines, IA

#3 May 22, 2009
What is even better is that they have a radio show called On the Money in which they discuss how to invest your money on a local station here in Champaign.
Read Carefully

San Pedro, CA

#4 May 22, 2009
Actually, Chicago way, the News-Gazette did cover the cease and desist. Don't blame your shoddy reading on the paper.

What's interesting to me is that the bank in Macomb that was also closed today after being in business for over 100 years is owned by the same two guys as Strategic. Bought both in the last five years and went crazy with brokered deposits. Wonder where they are tonight. And how much they have in offshore accounts.
smallbiz

Champaign, IL

#6 May 22, 2009
The on the money show is done by some folks from Busey Bank. I don't think they are associated with Strategic.
BHSS wrote:
What is even better is that they have a radio show called On the Money in which they discuss how to invest your money on a local station here in Champaign.
the Chicago way

Champaign, IL

#7 May 22, 2009
Read Carefully wrote:
Actually, Chicago way, the News-Gazette did cover the cease and desist. Don't blame your shoddy reading on the paper.
What's interesting to me is that the bank in Macomb that was also closed today after being in business for over 100 years is owned by the same two guys as Strategic. Bought both in the last five years and went crazy with brokered deposits. Wonder where they are tonight. And how much they have in offshore accounts.
lies!
Oskee Wow Wow

Mattoon, IL

#8 May 23, 2009
This is no surprise. Anyone from the Champaign-Urbana area that didn't see this coming has had their head in the sand, whether or not they read one newspaper or another. This has been fueled by greed, pure and simple. I feel as sorry for these investors as I do for people that got burned by Madoff.

Investment returns sound too good to be true? They probably are. If people weren't so greedy, they wouldn't get burned by pyramid schemes and faulty banks who don't do business "the right way."
Dr_Gonzo

Frankfort, IL

#9 May 23, 2009
Champaign? Where is that?
sluggo

Roselle, IL

#10 May 23, 2009
The Trib failed to report that Strategic Capital Bank in Champaign and Citizens National in Macomb both had the same ownership in Oakbrook and were both shut down at the same time. Citizens National is well over a 100 years old, I guess the new Oakbrook owners didn't take care of it very well.

Strategic Capital tried to be a private bank for wealthy Champaign/Urbana folks, I guess there just wasn't enough wealth in central IL to keep them healthy.
Taxpayer

United States

#11 May 23, 2009
So the federal government continues its forced entry into the private sector, demanding that ownership change management and increase capital.

In this economy, that this same government has created, how does a bank raise capital when we are losing 550,000 jobs per month?

What good does changing management do if they are just going to follow the FDIC protocol?

Maybe the news could do a little better job at reporting as to whether or not there was any wrong doing. To assume that there was, just because they failed is ludicrous. Companies in every field are failing at record numbers. It would only follow that the lenders would have to fail as well.

A bank would have to be in bed with either Congress (F&F) or Treasury (the BIG 5)in order to get billions and no restructuring (without platinum parachutes, gold won't cut it).

semper anon

Champaign, IL

#12 May 23, 2009
Dr_Gonzo wrote:
Champaign? Where is that?
Where is Mokena? lol Souns like a muppet!
semper anon

Champaign, IL

#13 May 23, 2009
You could tell something was up at Strategic. It had been in the news too of course, but if you called on Strategic, the receptionist was always rude and nasty. There must have been loads of stress there!

Now we know why!
ddf

Columbus, OH

#14 May 23, 2009
Not surprised...Champaign especially is a hyper-competitive banking market, there must be at least 25-30 different banks there, many with multiple locations. Busey is the 900-lb gorilla, I believe it's the largest back outside Chicago and the suburbs, with some $5 billion. But it also has a presence in the Indy area and Florida.
ddf

Columbus, OH

#15 May 23, 2009
sluggo wrote:
The Trib failed to report that Strategic Capital Bank in Champaign and Citizens National in Macomb both had the same ownership in Oakbrook and were both shut down at the same time. Citizens National is well over a 100 years old, I guess the new Oakbrook owners didn't take care of it very well.
Strategic Capital tried to be a private bank for wealthy Champaign/Urbana folks, I guess there just wasn't enough wealth in central IL to keep them healthy.
Oh...there's plenty of wealth, believe me. Look at the endless sprawl and number of houses in the $500,000+ range...I know, I live there, despite where my internet provider says I live right now...
Interested

Warrenville, IL

#16 Aug 6, 2009
Read Carefully wrote:
Actually, Chicago way, the News-Gazette did cover the cease and desist. Don't blame your shoddy reading on the paper.
What's interesting to me is that the bank in Macomb that was also closed today after being in business for over 100 years is owned by the same two guys as Strategic. Bought both in the last five years and went crazy with brokered deposits. Wonder where they are tonight. And how much they have in offshore accounts.
who are the two guys?

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