SecProbe.io

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      August 4, 2005

Mail Stop 4561

By U.S. Mail and facsimile to (847)653-7890

Daniel C. Stevens
Chief Financial Officer
Taylor Capital Group, Inc.
9550 West Higgins Road
Rosemont, Illinois 60018

Re:	Taylor Capital Group, Inc.
	Form 10-K filed March 10, 2005
	File No. 0-50034

Dear Mr. Stevens:

	We have reviewed your response letter dated July 7, 2005 with
respect to our review that was limited to those issues we
addressed
in our comment letter dated June 23, 2005.  Where indicated, we
think
you should revise your document in response to these comments.  If
you disagree, we will consider your explanation as to why our
comment
is inapplicable or a revision is unnecessary.  Please be as
detailed
as necessary in your explanation.  In some of our comments, we may
ask you to provide us with supplemental information so we may
better
understand your disclosure.  After reviewing this information, we
may
or may not raise additional comments.

      Please understand that the purpose of our review process is
to
assist you in your compliance with the applicable disclosure
requirements and to enhance the overall disclosure in your filing.
We look forward to working with you in these respects.  We welcome
any questions you may have about our comments or any other aspect
of
our review.  Feel free to call us at the telephone numbers listed
at
the end of this letter.

Form 10-K for Year ended  December 31, 2004

Financial Statements for the Year ended December 31, 2004

Note 10. Income Taxes, page 80

1. We refer to your response to our comment that states the
portion
of the settlement charges deducted in the Company`s 2002 income
tax
return was $28.7 million, equal to 46.3% of the total litigation
settlement charges of $61.9 million.  You also state the tax
benefits
of $10.045 million related to this portion of the settlement
charges
were applied to the actual payment of 2002 income taxes and no
deferred tax asset was recognized.   In this regard, in addition
to
your current disclosure in the "Income Tax" section of MD&A that
states you deducted in your tax return $12 million of the tax
benefit
resulting from the litigation settlement charge, please tell us
and
provide us with the proposed disclosure in future filings
regarding
the following:

* State the dollar amount of the portion of the settlement charges
that were deducted in the Company`s 2002 income tax return and
discuss the basis for not recording a similar tax deduction in the
financial statements.  In this regard, we refer to page 4 of your
letter dated April 28, 2003 that states you determined that is
more
likely than not, but not probable that the tax benefits taken on
the
tax return will be sustained and the actual deductions taken on
the
return will not impact the 2002 income tax due to the uncertainty
of
the deduction.   Disclose, if true, that you are applying a more
likely than not threshold for reporting the tax benefits of the
settlement charges on your tax return and are using a higher SFAS
5
probability threshold for recognizing the tax benefits on your
financial statements.

* Reconcile the $12 million possible tax benefit you deducted on
your
2002 tax return with the settlement tax benefit of $10.045 million
you state was recognized for the $28.7 million portion of
litigation
settlement charges you determined in Exhibit A to your response
letter dated July 7, 2005.

* Considering the statement on page 2 of your letter dated July 7,
2005 that you were and remain unable to conclude that the
deductibility is probable, please disclose in future filings,
either
in the note or in MD&A that you have recorded a liability for
income
taxes that included the reserves for the potential disallowance of
the deduction for the tax benefits related to the litigation
settlement charges that you deducted in 2002.

* We note you state in Note 1, "Summary of Significant Accounting
Policies, Income Taxes", on page 60 that accruals for income taxes
include reserves for those differences in position between tax
treatment for tax return purposes and for financial statements
purposes.   Please tell us and disclose in future filings where in
the notes to the financial statement`s you have disclosed the
income
tax liability for $10.045 million related to the potential
disallowance of this tax deduction.

2. We refer to the FASB Exposure Draft of Proposed Interpretation,
"Accounting for Uncertain Tax Positions, an interpretation of FASB
Statement No. 109" dated July 14, 2005.    In light of the
significance of this proposed standard on your accounting for
uncertain tax position such as those regarding the deductibility
of
litigation settlement charges, please consider disclosing in
future
filings the potential effects of this proposed accounting standard
not yet issued.  Refer to footnote 5 of Staff Accounting Bulletin
Topic 11.M.

*	*	*

Closing Comments

      As appropriate, please respond to these comments within 10
business days or tell us when you will provide us with a response.
Please furnish a cover letter with your amendment that keys your
responses to our comments and provides any requested supplemental
information.  Detailed cover letters greatly facilitate our
review.
Please understand that we may have additional comments after
reviewing your amendment and responses to our comments.

      You may contact Edwin Adames (Senior Staff Accountant) at
(202)
551-3447 or me at  (202) 551-3492 if your have any questions
regarding these comments.

						Sincerely,

						John P. Nolan
						Accounting Branch Chief
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Taylor Capital Group, Inc.
Daniel C. Stevens
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