Corus Bankshares in Chicago is vowing to fight a federal lawsuit that it says will discourage banks from lending to students.

The U.S. Justice Department sued Corus last week, alleging that the $2.3 billion-asset company had made fraudulent insurance claims for thousands of defaulted student loans. The lawsuit, which seeks more than $35 million of damages, came after a five-year investigation of Corus' student loan servicing procedures.

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