Friday, June 18, 2010

Trouble For ShoreBank Bailout (Updated)

This is developing, just posted today by Chicago Breaking Business at 1:06 p.m. CDT. The shady bailout of ShoreBank is in deep doo-doo. Excerpts: By Becky Yerak - The bailout of Chicago-based ShoreBank has hit a serious snag as the Federal Reserve and Treasury drag their feet on whether to provide funding to the ailing South Side lender, sources close to the situation say. Last month ShoreBank lined up commitments from private sources, including Goldman Sachs, Bank of America, General Electric and Chase, for a capital infusion of about $135 million. That private money was to have made ShoreBank eligible for about $75 million in government funds from the Treasury’s Troubled Asset Relief Program. The bank has needed to raise about $200 million to stave off possible seizure. Rep. Jan Schakowsky must be having fits today, but the Tea Party Patriots Chicago is feeling pretty good about it: We are winning on the ShoreBank bailout issue. Last week, the Chicago Tea Party held a Stop the ShoreBank Bailout Rally with Joel Pollak and Issac Hayes.... Democrat Rep. Jan Schakowsky (IL-9) has done everything in her power to push for the bailout of ShoreBank, but is not receiving sufficient support from the Federal Reserve and the White House. Read more here... Yerak's report continues... Bill Brandt, chairman of the Illinois Finance Authority, a government financing body that has looked at ways to help ShoreBank, is disappointed by the developments. He says ShoreBank plays a unique role in helping downtrodden communities, particularly those in black neighborhoods. ”Given all the time and effort that went into this, the board of the Illinois Finance Authority, the local civic leaders on the South Side of Chicago and others I’d imagine, would be outraged over this development,” Brandt said. ”This is truly an example of the government moving the goal posts when they don’t want to lead,” he said. RELATED: BackyardConservative: A Congressional Investigation of ShoreBank Marathon Pundit: Anti-ShoreBank Tea Party Crony Capitalism Shores Up Shore Bank Chicago Daily Observer Congressional Republicans Calling For Investigation Into ShoreBank The American Spectator : AmSpecBlog : Saving Two Presidents ... Tea Party Protests Obama's Favorite Bank « The Foxhole