ShoreBank FAILS; Will Be Reincarnated As Urban Partnership Bank ["LET'S CHANGE THE WORLD" ]

(Crain's) — ShoreBank, the South Side lender that carved out a national reputation by successfully lending in low-income urban neighborhoods for three decades, was seized by regulators Friday after an extraordinary rescue effort featuring the nation’s largest financial firms fell short.

But all was not lost for the neighborhoods ShoreBank has served for more than three decades.

The new management of the bank, led by former First Chicago Corp. senior executive David Vitale, acquired $1.54 billion in deposits and most of ShoreBank’s $2.14 billion in assets from the Federal Deposit Insurance Corp. and will reopen ShoreBank’s 15 branches in the Chicago area, Cleveland and Detroit Saturday morning as Urban Partnership Bank.

The Federal Deposit Insurance Corp. agreed to share losses on $1.41 billion of those assets. The management-led buyout team agreed to pay a 0.5% premium for the deposits and received an asset discount of $146 million.

For the FDIC, the estimated hit to its insurance fund from the failure will be $367.7 million

Hillary Video on Shore Bank & Founder "Ron".

Obama & Shore Bank in Kenya Video ABC7

Central Illinois 9/12 Project

ShoreBank was the institution that financed the loan to Trinity United Church of Christ (Jeremiah Wright’s church) for Jeremiah Wright’s $1.6 million retirement home and a $10 million line of credit for Trinity United.

Van Jones an account holder at ShoreBank.

Howard Stanback is presently on the Board of Directors for the Shorebank Neighborhood Institute. He has also previously served as President of the Hyde Park Community Association and is a former Board Chairman of the Woods Fund where he served with President Obama. Stanback had been employed by New Kenwood LLC real estate developers, one owner being Tony Rezko

U.S. Sen. Richard Durbin and U.S. Rep. Jan Schakowsky, Illinois Finance Authority officials met earlier this month(Mar) with ShoreBank executives to discuss raising tens of millions for the bank through an IFA bond offering.

ShoreBank, Sharia Law and Bank Bailouts

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