Marine Bankís parent denied 
transfer request
Company had hoped to use $25M of subsidiariesí funds

By GM Today Staff 

July 11, 2008


CITY OF PEWAUKEE - The parent company of Marine Bank has been denied its request to transfer funds from a subsidiary to the holding company in order to pay interest on trust preferred securities it issued from 2000 to 2002, an official said Thursday.
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CIB Marine Bancshares Inc. in City of Pewaukee had asked the Wisconsin Department of Financial Institutions, as well as Illinois regulators, if the holding company could transfer about $25 million in excess capital from subsidiaries Marine Bank and Central Illinois Bank to the parent company. Many U.S. banks are in the same spot, as a lagging housing market has produced bad loans.

"I think in the current economic and banking environment, itís a request that is often made, and at this point is not often granted," said John Hickey, CEO of CIB Marine.

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This story appeared in The Freeman on July 11, 2008.