Chicago -- U.S. regulators seized ShoreBank Corp., a longtime community lender in Chicago, and decided to sell its assets to a team including the bank's executives.
The Federal Deposit Insurance Corp. made the rare move Friday -- selling a bank to its management -- in this case, with the financial backing of large financial firms, The Wall Street Journal reported.
The FDIC normally forbids investors who own more than 10 percent of a failed bank from bidding and asks whether any bidder has "ever been an officer or director of a failed institution" or "participated in a material way in one or more transactions that caused a substantial loss to any such failed institution," the Journal said.
