The bank has 26 branches in the Chicago-land area and is owned by Midwest Banc Holdings Inc. Midwest Bank has only a few weeks left to raise $125 million in order to defer receivership.
Purchasing bids are due to the FDIC by May 10, which is likely to mean the bank will fail around May 14. The bidding war for Midwest Bank is expected to be more competitive than any of the other failed banks in the area. Potential bidders include MB Financial, Wintrust Financial Corp., First Merit Bank, US Bancorp Inc.
If Midwest Bank is seized by the FDIC it will be the third bank in the country to fail after receiving federal bailout money. Also only a few days ago the FDIC shuttered seven, unrelated area banks.
To read the full report in Crain's Chicago Business click here.
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