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
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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