Castle Bank

One of many divisions of the US Department of the Treasury is the Office of the Comptroller of the Currency (OCC). OCC is charged with ensuring a banking system that is competitive and sound, and this has been a busy year, especially in Illinois.

The OCC website offers an Enforcement Action Search. Feeding in “DeKalb, Illinois,” turns up a Formal Agreement (FA) with Castle Bank:

The Comptroller has determined that the Bank has engaged in unsafe and unsound banking practices relating to its credit underwriting and administration, commercial real estate risk management, problem loan management, credit risk ratings, allowance for loans and lease losses, and Bank Secrecy Act program.

The FA was signed in June.

7 thoughts on “Castle Bank”

  1. Perhaps Mr Castle should have spent less time challenging the DeKalb Home rule ballot initiative last spring and instead should have put forth his time and effort in safely running his bank!

  2. I suspect that most of our local banks are heavily involved in commercial real estate projects. This may be a reason for this “agreement”. While problems in this market are not getting the press that the residential mortgage implosion does, the difficulties in it are very significant. Sales tax receipts are plummeting, and this does not bode well for retail and the developments based upon it.

  3. The first wave of residential foreclosures that we have just seen was just a warm up for the next major wave of residential foreclosures to come. The financial institutions are being a little more hush hush about the commercial bubble that is about to burst here shortly.

    Another wave of residential and a commercial foreclosure run, together! This is not good.

    My father told me the other day that he was optimistic when he saw that the amount of sales went over 100 the other month but then he saw that there was close to 825 properties foreclosed on. He expressed much concern with that and really we all should.

    Question. Does a bank pay taxes on a foreclosed property? I know they cannot be held to mow or pay liens written by city government for weeds or unpaid bills etc. If they are exempt from paying property taxes, our school district is really in deep trouble.

  4. Steve Forbes when he was in Rockford a few weeks ago pointed out and stressed that the worst thing that happened in the past year and some months was when the financial institutions remarked the market thus literally dropping values on all properties. When it comes to businesses that have learned to survive with a credit line based off of equity in business worth, land and building and then to overnight lose that equity thus credit killed just about every builder and developer that has property for sale and homes sitting.

    This was a major straw on the camel’s back.

  5. What the major banks are trying hard to avoid is having to mark their Level 3 “assets” to any sort of market. Right now, they are apparently marked to fantasy. If they took the same medicine that they have dished out to good business people like Ivan, they would be out on the streets. That great Democratic statesman Huey Long had a slogan, “Every Man a King!” Now, if he were alive today, I think he would change that to, “Every Man a Wall Street Bankster!” But then, Huey did not care much for the Northeast elite of his time, and was a threat to them. That was probably what led to his untimely demise.

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