Non-Illinois Corus Bank Depositors Report Harsh Treatment by MB Financial

My opinion is that banks can borrow money at nearly 0% interest now. The only reason to have depositor money is to have the correct capital reserves. They want local depositors only, so that they can make loans to them. Out of staters don't make loans, and therefore make the bank no money. I would like to hear from bank insiders on whether my opinion is correct.

By the way, thank for your all your information banking guy. Much appreciated.

They are NOT treating locals much better. I live 15 minutes from a Corus branch. Got the letter yesterday that my interest, as of 9/17, was now 2%.

This is very nasty treatment of customers. My Corus CD matured the week the bank failed, luckily before Friday. Corus wired the funds out for me, for free. I was well treated and the Corus reps were very professional.

A few more days and I would have become toast, a victim of this new so-called "bank". Their insistence on snail-mailing checks is ridiculous. We all know why they are doing that. I bet those letters don't get into the mail very quickly, either. What a disaster, and all compliments of the FDIC's choice of successor bank. Thanks, FDIC. You really did yourselves proud on this one!!!!!!!!

So far no change for me, Just checked my account and CD is still open and at 4.65%. If a check had been mailed out to me I'm sure it would show as closed, Also Money Market account still at 1.31%. I called last week and was told I would get a letter about any changes and nothing yet. She did tell me I could close CD and get interest up to that day. Since I only have about 3 weeks to go I might now do that so that I can have it put into my Corus checking account and deposit local with no delay

I live out of state and just received two wire transfers from two CD accounts that I closed just yesterday after seeing the decline in interest rates. They even waived the wire fee's and were very cordial to me. I guess I got in under the wire.

To those who are griping...Corus FAILED.

MB Financial has no need or reason to keep the bank's rates or policies. The bank has the choice to handle customer accounts as it sees fit. Be glad that you are getting all of your money back.

Hi, FYI
I'm in NY and we had 5 large CD's @ Corus for some years. CSR reps always have been great-great service. After redaing Bankguys info last weekend then reading Chicago Papers and checking MB;s rates (for MB customers...) well I saw what was coming. I avoided phoning Corus on 9/14. thinking "wow" no sense wasting time they will be swamped. On 9/15/09 @ 9:30AM CST, I phoned Corus, no waiting got the typical great Corus CSR within 10 seconds. I asked about existing CD rates (and I did say I was in NY). She said "no *FINAL* decision was made...but in her tone, I HAD my answer. She offered, as I knew, that I could close the CDs without penalty. I asked what options I had to officially inform CORUS that I wanted to close them. She told me, in conjunction with how I wanted the funds...

1. I could start the process on the phone (unless I wanted to wire xfer the funds, in which case I needed a form, notarized and faxed back.

2. I could wireout the funds, or have them mailed or for a $25.00 charge (total for all acoounts, not per account) have the checks sent FEDEX overnight. This was my choice.

3. I had already just logged in and printed the status of each acctm just before my call.

4. The next morning I logged back into Corus and all accounts were now a zero balance, with details about the principal & interest "withdrawn", & each acct showed as "Closed"

5. Thursday 9/17/09 noontime, FEDEX delivered an overnight envelope with all amount 100% correct.

6. Yesterday.9/21 via US Mail I received full printed statements covering every account.

OK...wish Corus was still open, good rates & good people. I can say the same for Netbank, MBNA, Providian.

I have my principle, earned interest! Sure today's rate Sxck but that's life.

*Even in "death" Corus was impressive!

"... Be glad that you are getting all of your money back."

Spoken like a true financial elitist. As if surviving banks don't rcv sufficient perks on the backs of the US taxpayer.

To the extent that choice Corus employees stay on is MB's only hope for redemption.

We are a bunch of rate ****s who will dump a bank in a heartbeat when we find a better deal, No matter how good service was and how they treated us. Most of us are unprofitable to these banks so should we really complain about them?

Spoke with representative re my CDs and Florida residence. She kindly and politely answered all questions, but confirmed that the bank will not be maintaining accounts outside of Illinois. She tells me that mine have been closed as of yesterday and checks either sent yesterday or going out today. Hmm.
Thanks for the alert!

just called and got confirmed that my 1-yr CD still has 4.55% interested. Mature in Oct. She said this is because I also have a Money market account.

She also said I can also close now if I want, but she suggested me to keep it till it mature. A nice person.

@Scott, while you are partially correct in that many just shop around for rates, some actually stay because the accounts are easy to deal with.

As far as being unprofitable, the bank certainly felt at the time offering a 4.5% CD and making loans for 7% to 12% was profitable. Those that opened the CDs didn't set the rates. The bank did. Nor did they control whether or not the bank allowed out-of-state deposits either.

MB has every right to close the accounts, but to lower the rate the next day and then mail out notices and then later mail out the checks is bad form.

To: All
Re: Rate "****s"

While I shop for the best yields, I do not consider myself a rate "****." Frankly, that's the first I've heard that term, and it's a tad abusive.

If you don't think bankers also stretch for the best yields, think again.

Just my $.02.

Bozo

I'm another lucky just-under-the-wire depositor. My 12-month CD matured on Sunday Sept. 6, they mailed me a check (as requested) dated Tuesday Sept. 8, the day after Labor Day. Just in time! (I received it on Sept.10).

Most likely it will get worst as they fire all the best and expensive empolyees, offer more and more crappy products to the local market etc. So now everyone has a taste of the way they think about things it might be best for customers and empolyees to leave now, its always easier to find a job if you already have one...

I'm an employee at MB, and we appreciate all of your feedback regarding your experiences with MB during this transition from Corus Bank. We understand, though, the frustration expressed here because first and foremost we’re talking about your money. You chose to open a CD with Corus because they offered an excellent rate – especially in this current market and you feel as if we’ve broken a contract.

One of the unique things that happens in an FDIC transaction where a bank fails is that the acquiring bank does not have to accept the agreements and contracts made by the failed bank. After all, some of those agreements might have contributed to their difficulties.

MB remains financially strong because we balance our rates between what’s attractive to customers and key to good business practices. We are also committed to the Chicagoland market. We’ve been doing business here for nearly 100 years and our priority is to focus our resources on the businesses and residents of the communities we serve.

To that end, it didn’t make good business sense to us to retain out-of-state relationships and it wasn’t true to our mission to spread resources out of the Chicago-area. That’s why all Corus Bank CD customers were sent letters notifying them of any account changes last Friday and all out-of-state CD customers were cut checks, which were put in the mail yesterday. Because Corus Bank failed, these customers are not penalized for the money being withdrawn early and are now able to find a bank that offers rates more suitable for achieving their financial goals. In fact, we took a look at bankrate.com and there are some nice rates out there.

It may not feel like it to some but the MB and Corus teams have been working long hours to make this transition as seamless – and painless – as possible. We appreciate your understanding and, more importantly, the opportunity to continue to serve the banking needs of the Chicago area through an even bigger branch network.

Very interesting comments. I see the point that the focus has to be to the customers in the local area (in this case, Chicago). A lot of deposit money is coming from areas outside of the local bank. Small banks want to focus on local customers and not to people from "outside" that area. This is a refocus back to way banking was done over 20 years ago. The internet has blurred the boundaries of banking.

Many small community banks were only equipped to service the local community who would provide the bulk of the business (loans, financial services, etc.) to that bank. The internet has allowed money from outside sources to alter the business dynamic of those small banks, so some have reacted by shutting down out of state customers. I sort of understand why so many small community banks with attractive rates all of a sudden cut off accounts from outside customers. These outside customers are not those that stay with the bank for generations. The small bank wants a balance between credits and debits for their operations. Many of these roaming customers should go to the megabanks. They offer puny rates, but they can handle a huge onslaught of deposit money without any problem. Small banks are not equipped to do that and want to focus on local reliable customers.

I don't have a problem with MB Financial changing my Corus CD account term, or closing my account. But how can they do this, then notify me after the fact? Then send me the check via snail mail? Essentially they are attempting to use the customers money for free as long as they can. Not sure how companies like this stay in business. Hopefully someone will file a class action suit. I know I won't get any money, the lawyers will, but it may teach this institution a lesson. Probably not.

Still haven't gotten my check for a Corus CD. Every day that MB holds my money, it is lost money. If they had any decency, they would have offered a FREE wire transfer out. Not snail mail. And perhaps interest during the period at the national average, not their .05%

To Christina Bushman

"That’s why all Corus Bank CD customers were sent letters notifying them of any account changes last Friday and all out-of-state CD customers were cut checks, which were put in the mail yesterday."

So my account should have been closed on the 19th? So why today on the 26th is my CD open and still earning 4.65%? I am in MA and called yesterday and got conformation that no changes have been made on my account.

To Christina Bushman:

I live in NJ and have never received any mail from your bank informing me of your intentions in closing my CDs. After seeing my balances online with Corous at $0.00 I called today. I was told that checks were mailed out on 9/22 to out of state customers. Apparently not all Corus account holders were notified by mail, and I have not received any checks in the mail.

I also live in NJ and am awaiting my Corus proceeds. I simply do not believe that MB mailed all the checks on the date indicated, i.e. 9/22. I agree with the reader who opined that it was unconscionable for MB not to have offered free wires or, at least, free ACH transfer of proceeds.

Thanks for the info.

I have done a few CD's. CSR claims that checks were mailed out on 9/21.

As of today (9/26/09), i have not received any.

I am as eager to take advantage of the highest yield as any banker would be.
But, I still do not get the reluctance to accept out-of-state deposits.
I was able to take advantage of very competitive CD rates last year
(4.20% APY 12-month, 4.10% APY 9-month and 4.00% APY 6-month) at Community Banks of Colorado.
However, they would not allow me to open a checking, or savings because I was out of state.
This meant that at maturity my only options were a costly wire, or a slow/unsecure proceeds check.
The rate was worth it on $100k, but the discrimination towards non- local residents is unproductive.
The financial institution has the use of my funds guaranteed for the entire term.
So, what's the problem?

On a taped message at the phone number provided in the MB letter MB said checks would be mailed out through 10/9. My check arrived on Sat 9/26 - two weeks following the takeover. I call that undue enrichment. Banks are very good at playing the float in their favor. It will take 9 days for this deposit to clear (as happpens to me at BofA and Chase). Despite MB's poor management of the situation there is not likely to be much megative impact on them.

I look at all of this as a "me versus them" game. Same as going to an auto dealership to buy a car. Your goal is to get a car at the lowest cost (keep as much of your money). The dealer's goal is to sell you a car at the highest price (get as much of your money). Totally different goals. This situation is similar.

MB Financial lowers your rate to 0.05% without notifying you first. What ever happened to proper DISCLOSURE OF RATES?? Then they take another TWO WEEKS to send the closing checks out via snail mail. EVERYONE WHO HAS BEEN MISTREATED BY MB FINANCIAL SHOULD CONTACT THE FDIC DIRECTLY. The more complaints logged against them the less likely they will be considered for future takeovers.

I just called Corus/MB about my CD maturing 10/13/09. Was told it's still open and the reason it stayed open even though I'm out of State is because I also had the Ultimate Money Market. Was told a maturity notice notice went out yesterday that will allow me to request the money be put in my UMA and then I can just write out a check to close. So looks like no loss of interest for me