Troubles continued to mount Friday for the now-closed Central States Mortgage Corp., hit by a state judge's order effectively freezing $2.3 million in assets and the reported dismissal of key management earlier in the week.
The $2.3 million hold, was approved Thursday by Milwaukee County Circuit Judge David Hansher in an emergency hearing.
The judge's temporary restraining order against the beleaguered CSMC, whose lending business has suffered large losses, came on a suit brought by Associated Bank, a subsidiary of the $25 billion Associated Banc-Corp of Green Bay. Earlier suits have been filed by other Midwest banks with Members United Corporate FCU seeking repayment of a $33 million defaulted note apparently forcing CSMC "suspension of business" March 9.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
