Illnois bank tied to indicted official is closed

US banking regulators have shut down a small Illinois bank backed by a Chicago government official recently indicted for tax fraud. 

State officials closed down New City Bank Friday after they were unable to find a buyer for the struggling financial institution or its assets. 

New City Bank was small with just a single branch and estimated assets $71.2 million and deposits of $72.4 million, the Federal Deposit Insurance Corp. said.

The FDIC will make payments to insured depositors and will eventually try to unload assets it will acquire in connection with the bank's failure.

Cook County Commissioner William Beavers was among the bank's major investors and was its vice chairman, the Chicago Sun-Times reported

Beavers was indicted on federal tax charges in February. The Sun-Times said he did not respond to their requests for comment. 

Crain's Chicago Business said Beavers has denied any wrongdoing. 

The business publication said Beavers likely held a small stake in the bank. Thas has now been wiped out. 

The bank's closure is expected to cost taxpayers about $17.4 million, according to the FDIC. 

Chicago is widely considered the corruption capital of the US.

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