Mexican Investors Apply to Rescue Chicago's Metropolitan Bank

The troubled Metropolitan Bank Group in Chicago may be getting a lifeline from a consortium of Mexican investors, Crain's Chicago Business reported.

The group, led by former Banco Popular (POP) executive Roberto Herencia, has agreed to invest at least $200 million in Metropoltan, a five-bank holding company with $2.5 billion in assets, the paper reported Tuesday. The group has also agreed to pay $26 million for the $78 million in preferred shares that the Treasury Department purchased from Metropolitan in 2009 as part of the Troubled Asset Relief Program, Crain's reports.

The investors filed a change-in-control application with the Federal Reserve Board on Feb. 22. The deal requires regulatory approval. Executives at Metropolitan were not available for comment.

Under the deal, Metropolitan's existing shareholders will get $2 million, or a stake of less than 2%. Peter and Paula Fasseas, who own two-thirds of the company's shares, would receive about $1.5 million, the report says.

Herencia would become the company's chairman, and Alberto Paracchini, another former Banco Popular executive, will become president and chief executive. The Fasseas family will not have any seats on the board.

Other members of the investor group including the family of Antonio del Valle Ruiz, which owns about half of the chemical company Mexichem S.A.B. de C.V., and Juan Francisco Beckmann Vidal, chairman and controlling shareholder of Jose Cuervo, the tequila company.

Metropolitan has five banks in the Chicago area: Oswego Community Bank in Oswego, Plaza Bank in Norridge, Archer Bank in Chicago, Metrobank in Berwyn and North Community Bank in Chicago. The company is operating under an enforcement action with the Fed.