The shady Shorebank bailout revisited
In May, I reported on the attempt by a coalition of government-corporate-left-wing advocacy interests to shore up the social justice banking poster child, Chicago-based Shorebank.
Yesterday, I told you about Shorebank’s latest dire financial reports, showing an even worsening capital deficiency than first thought.
Today, Bloomberg reports that the bailout deal may crumble:
ShoreBank Corp., the unprofitable Chicago lender to low-income communities, may be forced out of business after failing to win $75 million of federal bailout funds, three people with direct knowledge of the matter said.
ShoreBank raised more than $145 million in May from General Electric Co. and banks including JPMorgan Chase & Co. and Goldman Sachs Group Inc. That money was contingent on more federal funding that is now unlikely to be released, the people said, speaking anonymously because the matter is private.
“It looks like they are just out of options,” said Gerard Cassidy, a bank analyst at RBC Capital Markets in Portland, Maine. “Without a lot of private equity, their hands may be tied and the only option might be putting it in receivership.”
…The money raised in May was placed in an escrow account and is scheduled to be returned to investors tomorrow unless the government agrees to provide money or some other remedy can be found for the bank, according to a person who helped arrange the investments.
The White House denies it has played any role in trying to broker the bailout. But Shorebank’s Windy City ties to Obama are too numerous to ignore. And so is this administration’s penchant for bullying and bribery.
GOP Rep. Spencer Bachus wants an investigation into how the highly unusual, Goldman Sachs-led coalition to save Shorebank was formed — and at whose behest. Via Fox Business:
As if ShoreBank doesn’t have enough problems, the financially troubled but politically connected Chicago-based community lender is now facing a federal investigation into whether political pressure was applied to force several major Wall Street firms to bail out the bank before it was liquidated by banking regulators, FOX Business has learned.
Neil Barofsky, the Special Inspector General for the Troubled Asset Relief Program, or TARP, which has agreed to earmark $75 million to help ShoreBank survive, has now bowed to pressure from Congressional Republicans and has agreed to investigate charges that key officials in the Obama White House, as well as FDIC chief Sheila Bair, pressured Wall Street firms to donate money to keep ShoreBank alive.
In a letter to Congressman Spencer Bachus, ranking member of the House Banking Committee, Barofsky said his office has “agreed to do an audit” of the federal program that granted ShoreBank the money about two months and examine the “issues raised” in a letter Bachus sent to the White House, asking for records and other documents detailing whether key administration officials played in role in convincing Wall Street to help bail out the bank.
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Question: Is Shorebank on the president’s Chicago agenda today? Perhaps there’s a transparency-evading coffee house meeting on the schedule somewhere…
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Bwaahahahahahaha! Like that’s going to happen!
I wouldn’t hold my breath waiting for anybody to be indicted.
I just read elsewhere that Obama is planning to FIX all these poor banks who loaned to deadbeats as well as the deadbeats by having Fannie and Freddie, you know them as the TAXPAYER, forgive upside down homeowners loans. I’m sure all you taxpayers who have lost all the equity in your home through the slimey antics of Fannie and Freddie and their enablers in Congress are just thrilled to now be asked to pick up the tab once again for all those NINJA loans. (No Income, No Job, No Assets) All Obama Supporters.
Prosecuting these kinds of rackets will be pivotal in bringing down the Leftist cabals running scams around the country. It will also likely be the chink in the armor that will lead to larger prosecutable cases involving congressmen and the POTUS. I believe the law is closing in.
Understanding and prosecuting these organizations is critical to defending the country from her domestic enemies. Follow that with regular news narratives describing the strategy and tactics of the Left, by name, will go a long way towards convincing the larger American public that we are fighting a war against domestic communist insurgents. They are being systematically exposed and no amount of Soros money will hide them from justice.
Until the GOP becomes the majority in one house of Congress and manages to grow a spine, this will continue unabated.
Boy, if that day comes, I’ll look you up and drinks are on me. Let’s hope.
Not gonna hold my breath waiting for that to happen. As long a Graham, McCain, snow, Collins etc are in office . . .
Or have enough fresh blood show up in the Senate, which will be tough. The GOP leaders of the opposition the past two years have come from the House. That’s where our best opportunity lies, I believe.
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I think the IRS will be interested in auditing Maxine Water’s “bank”–aka STASH–someday. January 2013 is probably a good time to start–President Sarah Palin has a long memory. And the statute of limitations on corruption and tax evasion will still be in effect.
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John Bibb
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You’re right about that – longer terms and a state-wide dumbing down of the electorate keeping incumbants entreched is difficult to battle against.
If only there was a ground-swell movement to repeal the 17th ammendment and go back to state appointed senators. Senators should rightfully represent the interests of the STATE, while House memebers represent the interests of the PEOPLE, as the founders intended.
As it is, most senators represet, in succession, their own interests first, party interests second, state interests thirdly, and the peoples interest only when and if it suits their own agendas.
Off topic, but the shooting of nine whites by a black man is being headlined by the MSM, predictably, as racism on the part of whites. People, we are all targets now. The MSM is waging open warfare against white people. We are the new Jews of the 21st century. I propose that white people should start wearing, as an essential fashion accessory, a yellow star (5-pointed variety).
OK, this won’t be popular here, but Elena Kagen was involved in preventing at least nine different Barry eligibility lawsuits from being looked at by the Supreme Court:
http://www.wnd.com/index.php?fa=PAGE.view&pageId=187797
Yes, that may have been her job, but I’m guessing Barry wanted her for a little extra “insurance” in keeping the truth under wraps.
Sounds like an excellent choice for Barry’s future, but certainly not for most Americans.
Obummer’s choices have never and will never be excellent for most Americans, nor were they ever meant to be.
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Ms. Elena Kagen reminds me of Rosa Krebs from the old James Bond Movie.
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I hope the 5 conservative justices check her shoes for hidden knife blades!
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REMEMBER IN NOVEMBER. Vote out the RINO’s in the primaries.
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John Bibb
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