ShoreBank update: A shutdown…and a quick, smelly reincarnation
Hmmm. Feds moved to shut down Obama crony bank ShoreBank today, but it’s not really going away (refresher course here and here).
Via Reuters:
Regulators on Friday seized notable Chicago-based community development bank ShoreBank after Wall Street backers failed to rescue the institution, and its deposits will be taken over by a newly-chartered bank.
ShoreBank, a privately owned bank with a national reputation for its philanthropic activities, had received multi-million dollar investment commitments from Goldman Sachs, Citigroup, JPMorgan and Bank of America, as well as from General Electric.
But the bank, which was put on the ropes when the recession hit its lower-income borrowers especially hard, was unable to secure the funds it was seeking from the government’s Troubled Asset Relief Program, or TARP, it needed to match private-sector pledges.
ShoreBank’s deposits will be taken over by a newly-chartered institution called Urban Partnership Bank. Its 15 branches also will shift to the new bank.
The Federal Deposit Insurance Corp said the bank had $2.16 billion in assets and $1.54 billion in deposits.
Who is “Urban Partnership Bank?” This press release lists officials with Shorebank e-mail addresses as the contacts for the Urban Partnership.
And many of the same old Big Biz investors and left-wing activists who tried to prop up Shorebank are investors in the new reincarnation:
The group seeking to buy ShoreBank, the ailing South Side lender expected to be seized by federal regulators Friday, plans to name former First Chicago executive Bill Farrow as the chief executive and president of the institution if it succeeds at bidding for certain assets and deposits of the failing bank.
It means that three former First Chicago executives will be running the show if their bid succeeds.Many of the large institutions that earlier had committed about $150 million to Chicago-based ShoreBank as it unsuccessfully sought $75 million in government aid will be investors in the new bank, whose charter is named Urban Partnership Bank.
They’ll likely put in about the same amounts as before, though a few smaller contributors might have dropped out. Besides big banks, the group also will include philanthropic groups, insurance companies and socially minded individuals who believe in ShoreBank’s mission of serving underserved communities in Chicago, Detroit and Cleveland.
As I noted several weeks ago, the White House denies it has played any role in trying to broker a 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.
A crony bank by any other name smells just as rotten.
***
From ZeroHedge: Failure Of Obama’s Pet ShoreBank Costs Taxpayers $368 Million, Which Immediately Goes To Goldman Sachs Among Others…
And just who is this “Urban Partnership Bank” that is receiving a taxpayer subsidy of $368 million? Why all the usual suspects of course: “The significant investors in Urban Partnership Bank are American Express Company, Bank of America, Citigroup, Ford Foundation, GE Capital Equity Investments, Inc., Harris Bank, the John D. and Catherine T. MacArthur Foundation, JPMorgan Chase & Co., Key Community Development Corp., Morgan Stanley, Northern Trust Corporation, PNC Investment Corp., State Farm Mutual Automobile, The Goldman Sachs Group, Inc., and Wells Fargo & Company.” And so the old “out-of-one-taxpayer-pocket-and-into-another-Wall-Street-pocket” game continues, only this time it includes administration darling banks that should have been liquidated long ago.
By keeping ShoreBank artificially alive for far longer than it deserved, the assets amortized far more than they would have had it been taken into receivership by a non-conflicted bank, and thus the final cost to taxpayers would have been far less.
As it stands, Goldman and 11 other banks are receiving a multimillion dollar gift to conduct a portfolio liquidation run-off of ShoreBank’s assets, while merely making sure existing deposits are serviced.
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and socially minded individuals who believe in ShoreBank’s mission
No, no, no…!!! To quote Rev. Wright.
Socialist-kleptocrat minded individuals and their instruments, is more like it.
I’m shocked. Who would have thought that Shorebank was connected to Der Fuhrer? /sarc off
Underserved- (tr.v.) See Negro
ANYTHING with the word “Social” in it is to be SUSPECT!
I’m dumping every single dollar I have into the next CONSERVATIVE Presidential candidate’s campaign. I want this country hooked, stun sticked, filleted and then redistribute its Democrat stolen wealth to their rightful owners.
…unless you are a liberal and/or stoooopid voter.
good job MM. By the way you looked great on Cavuto today. That guy is the coolest anchor of them all. He’s cordial and confrontational. He’s serious about things but doesn’t take himself too seriously.
He’s a big reason why the FoxBusiness channel is doing so well. he’s been working non-stop since the network started. He’s out at tea parties, on top of buildings in the rain in DC. He’s a total trooper. It’s fun to see guys like that succeed.
But yeah, I suspect when the walls come down and people stop protecting the president, there are going to be a lot of improprieties that have been happening. This bank failure is probably the tip of the iceberg. Thanks for all your work shining light on it all MM.
The ruling class media version of stolen money laundering, our money.
Victims rights are waived in the unquenchable thirst for the blood of the taxpayer prey animal.
Can it be any surprise the ruling class has no respect for the country class.
Vampires are more egalitarian.
Anyone with even a shred of intelligence can see what’s going on now. If you’re still one of those still falling for the “hope and change” b.s., then you deserve slavery! Everyone else better fight it now!!!
It’s like watching a shell game.
We just hide that stinky one under here, and this stinking one under there.
Rollin’ in ma six fo…
Hiding ? ? ?
They are not hiding anything.
All things are normal.
Just ask Barney and Chris and Charles and Maxine and ……
*Good insight Michelle; You can spot corruption like a beagle on a cottontail.
*This is another example of why we are in for a prolonged, possible double dip recession; We have to allow the private enterprise free market system to wash the failures out and let others come in to scoop up the good assets, with no government intervention whatsoever; This is FDR all over again; And the sorry people that shouldn’t be in homes in the first place need to find a place to rent; I rented for 8 years before being able to afford a home; I am sick to death of paying for the negligence of others.
If it looks like shi#, smells like shi# and feels like shi# when smeared on your face…just be sure not to step in it. No, that isn’t supposed to make sense. I just felt like saying it.
You gotta love the “inner-city” nomenclature.Urban: code word for Black ownership.Partnership: meaning there will be more than one person fleecing the depositors.Shorebank will not be treated any differently than Goldman-Sachs, Fannie and Freddie, and others…those in charge will be punished, by, what else, remaining in charge. Social Justice on display.The time honored Chicago tradition of Grift and Take must be observed…sure, the depositors funds will be secure…uh-huh…yep, the government du jour, wouldn’t possibly lie to cover-up incompetence, malfeasance, and theft of funds…nope! These funds will be as safe as Social Security funds, because the shareholders “honor” their fiduciary responsibilities so-o-o-o much!
On second thought…it makes perfect sense!!
You summarized it in one full swoop! When the fox guards the hen house, we can expect same ol’ results! The gub’mint keeps talking “reform”… my A*S! There is noone to trust in the current make-up of our government. The sitting officials = the wily fox.
Mr. Happy and I have left large financial conglomerates and have moved to smaller well-managed local banks. They may not be all that much better, but hopefully they won’t s#*t where they eat.