In two months Midwest Banc Holdings Inc. in Melrose Park, Ill., has gone from a company with big growth plans to one that may not be able to survive on its own.

The $3.7 billion-asset Midwest is facing a potentially damaging capital hit relating to its investments in Fannie Mae and Freddie Mac preferred stock, and its efforts to raise up to $125 million of fresh capital appear to have stalled.

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