Skip to comments.Regulators Seize ShoreBank; Management Takes Over
Posted on 08/21/2010 4:22:42 PM PDT by Brilliant
Regulators seized ShoreBank Corp. on Friday and agreed to sell assets to a team led by the community lender's executives and backed by several large U.S. financial firms.
The bank closure... caps months of uncertainty for a $2.16 billion Chicago bank that had ties to the Obama administration... The new institution will be known as Urban Partnership Bank and led by William Farrow... who was ShoreBank's president and chief operating officer at the time of its failure... David Vitale, a ShoreBank board member, will become chairman...
The decision to sell to management is a rare move by the Federal Deposit Insurance Corp., which generally bars investors who own more than 10% of the failed bank from bidding on its assets. The FDIC also typically wants to know if bidders have "ever been an officer or director of a failed institution"...
The FDIC and Urban Partnership also agreed to share losses on $1.4 billion in assets. The holding company will remain intact... Urban Partnership is backed by a consortium of large U.S. financial institutions, including Bank of AmericaCorp., Goldman Sachs Group Inc. and Morgan Stanley. Philanthropic groups and individuals in the Chicago area are also part of the effort...
The banks... were many of the same institutions that agreed earlier this year to help fill a capital hole at ShoreBank, but that rescue attempt fell apart when ShoreBank officials were unable to secure an additional $75 million in federal support via [TARP]...
Republican lawmakers have questioned whether the Obama administration pressured the big banks for help. The White House has said it didn't...
Rep. Darrell Issa of California... will request an investigation by FDIC of ShoreBank...
Shore historically has served low- and moderate-income communities...
Urban Partnership Bank will continue to serve Chicago's South and West sides, along with Cleveland and Detroit...
(Excerpt) Read more at online.wsj.com ...
Mgt gets the books instead of letting others get a look.
You know, it never ceases to amaze me....but after you get to a certain socio-economic level in this country you just can't seem to fu@k up. So this dude leads one bank into failure...so, of course, the successor in interest bank hires him as President and CEO....and nobody blinks an eye....LMAO
That's what I was thinking. Gotta' keep dem skeletons hidden.
Exactly. Don’t want the outside world to know what is going on. Keep it “all in the family.”
Also, do you notice that they put up only about $150 million for this bank, and they have the government on the hook for losses up to $1.4 billion? Pretty good deal for the Chicago mafia.
The fraud at this bank must be amazing.
The FDIC knew it was shutting down Shore before the Obama/Geithner meeting on Fannie and Freddie where a Shore representative was a featured speaker on ... “affordable housing.”
As I said yesterday, this deal stinks. The same management that ran the bank into the ground gets to have its slate cleaned at taxpayer expense. And TARP banks provided the funding.
They claim that the new management had nothing to do with the bank’s collapse. I might give them that, but they were probably chosen because they could be counted on to keep the bodies buried.
Again the Obama fascist thug fix is in. And the locations of Chicago, Cleveland and Detroit will linne the bank up forlots of union oand Obama motors business.
What you see is the formation of a new Obama Motors Bank.Lots of afforative action lending planned for this demographic, subsidized by the new Affirmative Action FDIC. Do you think your money is safe in a US bank? It all depends on what your race or ethnic affiliation might be.
I do know one thing. Urban Partnership Bank is just about the safest place anyone can deposit their life savings these days. Every bank in the nation could fail, but this one will not.
Urban partnership will receive all the Cap and Trade business from the planned new Chicaco Carbon Swap Market,fueled at first by the auto industry and all of Obamas friends will become billionaires. Thats reason enough to make sure that cap and trade is not passed, the biggest grift in World History to bleed corporations dry.Scheduled to pass in the lame duck Congressional session of 2010/2011.
Thats the Urban Partnership community organizingway! HopeNchange!
We can just imagine what the cost of a subcompact auto will come to be, likely around 40 grand. Get em now while they are cheap!
They made low down payment loan to low credit borrowers and its not their fault? And they made BAD business loans to their friends? .. And its not their fault?
A buddy told me this bank had about 95% of the business on the South Side. Which is probably why it is what it is.
The FDIC claims the new management came in just before it was taken over.
Growth areas, no ?
How odd! I knew about when Shore was first being looked at.