The Illinois Department of Financial and Professional Regulation (IDFPR), in collaboration with the Federal Deposit Insurance Corporation (FDIC), took possession of a Bank in Chicago on Friday (1/17).

Bank Closure Highlights Regulatory Action

According to an IDFPR press release, regulators took possession of Pulaski Savings Bank on S. Morgan Street in Chicago at 6 p.m. on January 17 due to the bank’s unsafe financial condition and impaired capital position, as outlined by IDFPR officials.

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Pulaski Savings Bank, which opened in 1890, had approximately $49 million in assets at its closure. According to the report, the regulatory intervention ensures that customers will experience no disruption in service or loss of deposits.

Millennium Bank Steps In

Millennium Bank, an Illinois-chartered and Minority Depository Institution, has agreed to purchase Pulaski Savings Bank. This immediate transition will allow Pulaski’s customers to maintain access to their accounts without interruption.

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Millennium Bank will operate the former Pulaski Savings Bank as a branch under its name, with normal business hours resuming on Saturday, January 18, 2025.

As a key component of Illinois’ regulatory structure, it is critical for IDFPR to safeguard the integrity of state-chartered financial institutions. While taking possession of a bank is a last resort, today’s action ensures customers receive the service they deserve. -Mario Treto, Jr., IDFPR Secretary

Safeguarding Customer Interests

The FDIC, which insures bank deposits up to $250,000, played a critical role in ensuring customer funds remain safe. According to Susana Soriano, Acting Director of the Division of Banking, “Not one customer with deposits at Pulaski Bank will lose a penny as a result of the steps taken today.”

The IDFPR, which oversees the operations of state-chartered banks across Illinois, acted decisively to protect depositors and maintain the stability of the state’s financial system.

Ensuring Financial Stability

The closure of Pulaski Savings Bank underscores the importance of strong regulatory oversight in Illinois.

Both the IDFPR and FDIC work to ensure the safety and soundness of the banking industry while protecting customers from potential losses, according to the press release.

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