Stifel Analysts' Easy – and Curious – Call on Chicago Bank

Here's something you don't often see in a stock research note: "FDIC Receivership Likely, Sell."

That was the subject line in a report Anthony Davis and Stephen Geyen of Stifel Nicolaus sent out Friday morning on Midwest Banc Holdings.

Davis and Geyen weren't exactly going out on a limb; Midwest, a Chicago-area bank, had disclosed in a regulatory filing Thursday that it didn't expect to meet the requirements of a prompt corrective action agreement it signed with the Fed in March to raise capital or sell itself by May 13.

Sure enough, the $3.2 billion-asset Midwest was one of four institutions that regulators closed Friday.

What's surprising is that any analyst would still be covering it when it was expected to fail.

"With FDIC receivership likely looming, our Sell rating remains in place," the analysts said in the research note. "We'll hold off on any changes to our model until further guidance is provided by the company."

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