Introduction to Problem Banks eBook

Internal Use Only

Defining Problem Banks and History Perspectives When good banks go bad…

Internal Use Only

January 16, 2025 Pulaski Savings Bank fails, Millennium Bank assumes deposits Pulaski Savings Bank, a $49.5 million asset Chicago-based community bank, was shut down Friday by the Illinois Department of Financial and Professional Regulation. The Federal Deposit Insurance Corp. was appointed as the receiver and all the banks' $42.7 million in deposits were assumed by nearby Millennium Bank of Des Plaines, Illinois. "Millennium Bank agreed to assume all deposits at the time of closing for a 4.61 percent premium. It will also purchase approximately $45.0 million of the failed bank's assets," an agency release noted. "The FDIC will retain the remaining assets for later disposition." "The FDIC preliminarily estimates that the failure will cost its Deposit Insurance Fund (DIF) about $28.5 million," the FDIC said in a release. "The estimate will change over time as assets are sold. Suspected fraud caused the higher estimated cost to the DIF."