Results tagged “banking”

HSBC Bank based out of New York is expanding into new retail banking markets adding offices in D.C., San Francisco, and L.A. but will likely pass over Chicago because it’s “heavily overbanked,” Brendan McDonagh, chief executive of HSBC North America told the Tribune. McDonagh used Washington Mutual as an example. The Tribune reported: “Washington Mutual mounted an aggressive branch expansion in the Chicago market starting in 2003, peaking at more than 170. Then, over the years it retrenched to about 120, and even more closed as the institution was integrated into its new owner JPMorgan Chase…”. McDonagh says HSBC will move slowly and watch how the WaMu to Chase transition plays out, as well as Bank of America’s acquisition of LaSalle Bank. [Tribune]

Chicago-based ShoreBank, known for making credit available in underserved communities, has been hit with a cease and desist order from the Federal Deposit Insurance Corporation, the federal agency charged with insuring deposits and regulating the liquidity of member banks. The order, which requires ShoreBank to to buttress its capital holdings and improve its asset quality and earnings and develop a plan to improve its liquidity, hasn't yet been made public. Nevertheless, it appears that ShoreBank is suffering from the same stagnant economic climate that has hobbled the rest of the banking industry. "We all got hit with a more severe recession than anyone - either here or in Washington or on Wall Street recognized," ShoreBank Chairman and co-founder Ronald Grzywinski told Crain's. While the bank asserts that it is "well-capitalized" by industry standards, it does have a plan in place to raise $30 million in capital. The bank already has a $4 million commitment.