Replies to post #3136 on Corus Bankshares Inc. (fka CORSQ)

[eyeownu]

(3) Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof?
Yes þ No o

If so, attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reasons why a reasonable estimate of the results cannot be made.

this I'm assuming is the change in the amount of NOLs for the bank holding company related to NOLs incurred by the bank?

As described above, the results for the year ending December 31, 2009 will segregate Corus Bank as discontinued operations due to being placed into receivership and include their results only through September 11, 2009. The loss before income taxes for Corus Bank for the period ending September 11, 2009 will be approximately $817 million as compared to a $573 million loss for the period ending December 31, 2008. Additionally, during the fourth quarter of 2009, the Company recorded an expected income tax benefit of approximately $104.0 million relating to the carryback of net operating losses (“NOL’s”) to 2004 and 2005. NOL carryback legislation was approved in November 2009 allowing taxpayers to carry back losses for five years instead of two years

[Billiam_2]

It is difficult to analyze, like comparing apples to oranges, however I think the difference is the monies booked as an accounting change due to liabilities taken over by the bank. It was something like $250MM which was a one time gain for the company. I think we are safe in assuming the the carryover is at least $500MM. It is pretty obvious that Corus Bankshares is not going to do any future business. So, why no BK? It is equally obvious that a future merger with the largest noteholder is on the way. No other way to get the $500MM NOL carryover. And somebody is going to get it!!!