Aurora Bank May Be Sold or Closed Soon, But Still Offers Competitive CD Rates

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Aurora Bank, formerly Lehman Brothers Bank, is offering a 1.43% APY on its one-year CD. However, court documents show Lehman Brothers Holdings needs to sell Aurora Bank in 18 months or close it.

Aurora Bank, the bank formerly known as Lehman Brothers Bank before it filed bankruptcy, has been struggling for awhile as regulators have restricted their ability to raise capital, namely limiting their ability to offer new certificates of deposits. India’s reports that in a U.S. Bankruptcy Court filing on September 1st, 2010, Lehman indicated they either had to infuse capital into Aurora or allow it to fail. It asked the court to approve settlements that will allow Lehman to sell the bank, or close it in 18 months if they are unable to find a buyer.

Aurora is currently offering a 1.43% APY on a 1-year CD with a minimum deposit of $1,000, and a 2-year CD earns 1.77% with a $1,000 opening deposit. While that is a respectable and competitive rate, it’s not the highest offer listed on the rate table. Deposits are FDIC insured up to $250,000, including principal and any accrued interest through the date of the bank’s closing. The acquiring bank (if any) is not obligated to honor the same interest rate after the acquisition.

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