U.S. taxpayers will be out $4.1 million after the failure of an Aledo, IL, bank in which the U.S. Treasury Department had invested.
This is from page 105 of a report released Jan. 26, 2012, from the Treasury’s Office of Inspector General about the performance of various government financial programs since the 2008 financial crisis.
“Closure of Country Bank
On May 29, 2009, Treasury invested $4.1 million in CB Holding Corp., Aledo, Illinois (“CB Holding Corp.”) through CPP in return for preferred stocks and warrants.
On October 14, 2011, the Illinois Department of Financial and Professional Regulation closed CB Holding Corp.’s subsidiary bank, Country Bank, and named the Federal Deposit Insurance Corporation (“FDIC”) as receiver. FDIC entered into a purchase and assumption agreement with Blackhawk Bank & Trust, Milan, Illinois, to assume all of Country Bank’s deposits. FDIC estimates that the cost of CB Holding Corp.’s failure will be $66.3 million.
All of Treasury’s TARP investment in CB Holding Corp. is expected to be lost.”
Here’s a link to the entire report, which is hundreds of pages long: