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Washington Prowler
Shoring Up Chicago’s Community Bank
How much White House involvement in ShoreBank rescue effort?
Republicans on the House Financial Services Committee want to find out if anyone in the Obama White House attempted to influence the financial bailout of a well-known Chicago-based “community bank,” which faced FDIC closure last week, and which, going back to the Clinton Administration, has had close ties to ACORN and the leftist community-organizing world of Chicago.
The story about the bailout attempt of ShoreBank first began breaking last Thursday night. The FDIC was demanding that the bank have $125 million in investments by Friday, but discussions to bail out the bank, which has close ties to both senior members of the Obama Administration, as well as the Clinton family, went deep into the weekend as Chicago politicians scrambled to save the bank.
Focus on the White House’s role is due in large part to the ties senior staffers there have to the investors and management of the bank, which started out as a community bank, and lately has been deeply involved in “micro-financing” and “green” loans. In 2006, before his Presidential race, then-Sen. Barack Obama visited his father’s homeland of Kenya, and around the same times ShoreBank donated $1 million to that country to assist in micro-loan programs there. At the time, Obama officials said it was a coincidence that ShoreBank made the contribution to Kenya. According to Department of Energy sources, disgraced Obama Administration “green” adviser Van Jones was a touter of the bank’s efforts — and an account holder — though he may not have had much to do with the bank receiving more than $30 million in funds to underwrite green projects.
Senior White House aide Valerie Jarrett appears to be the central figure in the Financial Services’ interest, according to Republican staffers with ties to the committee. “We have the Wall Street Journal reporting that no White House contacts were made on behalf of the bank with outside investors, but you keep hearing from those involved directly in the discussions that the White House appears to be all over this thing,” says one staffer.
Last week Eugene Ludwig, a former U.S. comptroller of the currency, who is working with ShoreBank to find financing to save it, held several individual and conference calls with senior officials from a number of different banks, including Goldman Sachs Inc., Bank of America Corp., Citigroup Inc. and J.P. Morgan Chase & Co., as well as several other foreign banks, seeking funding. “If you were on the call, the inference was that the White House wanted this bank saved. Obama’s name wasn’t invoked. Jarrett’s or [Rahm] Emanuel’s names weren’t invoked. But the implication was there,” a senior lobbyist for one of the banks said. “The White House would look favorably on this bailout.” Ludwig has stated publicly that to the best of his knowledge, the White House was not involved in lobbying efforts on the bank’s behalf.
But Republican committee staffers point to the fact that Goldman Chief Executive Lloyd Blankfein until late last week had declined to invest in ShoreBank, but then apparently had a change of heart and began calling other banking leaders to build support. Goldman’s stake: $20 million. “Given the crap Blankfein has been taking, you have to wonder what happened between his saying no and then saying yes,” says one Finance Committee staffer. “It’s not like the deal suddenly got better. “
Indeed, ShoreBank, even if saved now, is not guaranteed anything beyond perhaps a short-term save from the regulators. Initial estimates of ShoreBank’s shortfall had been in the $100 million range, but those numbers ballooned to $200 million. The majority of the funds, $125 million would have to come from private investors. The rest, $75 million, would come from TARP funding.
Supporters of the bank claim that ShoreBank was not like other banks that were dealing in subprime mortgages. However, the bank did make a business of refinancing subprime mortgages through its Rescue and Foreclosure Prevention loan program. In fact, at one time the MacArthur Foundation provided grant funding to underwrite the risk of those loan funds.
“It’s actually kind of awe-inspiring to see the effort being expended on this bank,” says the head of a U.S.-based bank’s Washington office. “You’ve had something like 70 or so bank foreclosures, and you could argue that some of those were better bets to recover than ShoreBank, but because of the Clintons, the Obamas, the Moseley Brauns of the world, and ShoreBank’s sentimental value because it supported their community organizing efforts, it should be saved. None of them were saying that about the bank in Wisconsin that kept family-owned farms afloat. Wonder how those banks’ investors feel about the Obama Administration’s lack of interest in them.”
At press time, however, it appeared that the best efforts to save ShoreBank had not panned out, though the FDIC had been allowing ongoing discussions to continue.
Letter to the Editor View all comments (60) | Leave a comment
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Ret. Marine| 5.17.10 @ 6:42AM
" at the time, Oblah, bla, bla officials said it was "coincidence" that Shore Bank made the contribution to kenya" Yeah sure that's a good one, more than likely just a lie, a CYA for oblah, blah. Tell me, has anything ever come out of the mouth of this pretender-n-theif ever been anything else but a lie in one form fashion or otherwise. If one has been following Glenn Beck's Crime, Inc. one could almost get the idea that Van Jones and the rest of this cabal, Jarrett, Axlegreased, rhamn and all these players hit the big times exchanging criminal minds for political power. This could be the first of many shots that will see these players in jail where they belong.
Alan Brooks| 5.17.10 @ 2:27PM
Obama is practically a nun compared to the Bush family. But they get a pass because Reagan spawned their dynasty, and because they are tough as nails.
And at least Michelle Obama isn't an ugly sow like Barbara Bush.
chris matthews| 5.18.10 @ 1:05AM
Now that you brought up looks M. O. reminds me of aunt esther from Sanford&Son;.
paul nelson| 5.18.10 @ 3:13AM
she isn't? we must be looking at different women
dennis| 5.18.10 @ 7:49PM
BHO is the number one crook in this country, why would this bank donate money to Keyna, because they knew The Keyna Senator would take money from the American people and give it to this piece of shit corupt bank, MO hates this country why don't you and her leave and give the reat of us a break!"
Connie| 5.19.10 @ 2:31AM
Oh Alan, Alan, Alan.....You must be very young, or have lived for years in a cave, or under a rock. The Catholic Church will march on you for such a demeaning remark about nuns.
Dumbo in OUR White House and both Bush presidents have the same basic money behind them, but Barry baby is much more flamboyant about it. Under orders, no doubt.
As for MO, she is one butt ugly woman. And....she lacks the class of Barbara Bush. Lets not forget, Mrs. Bush was a good bit older during her WH years than MO. And she's always had a much finer sense of fashion. Easy to do with MO having none. In fact, MO is an embarrassment to all the First Ladies she follows, with her public attire. If she dresses this bad out there, God only knows how bad she appears in private. Actually, MO is an embarrassment for most of this nation. Those who know better than she and, obviously, you.
Mad Chuck| 5.19.10 @ 5:58AM
May GOD punish your evil ways you are obviously a souless man Alan Brooken.
rubea ross| 5.21.10 @ 12:04AM
michelle is an ugly sow and barry is a criminal and if you cannot see that..you are blind or stupid
Deborah D | 5.17.10 @ 3:37PM
These folks are the inheritors of Al Capone and company. Politics and crime are so entwined in Chicago and have been for so long that crime seems downright wholesome. The new normal...scary thought.
Alan Brooks| 5.17.10 @ 4:37PM
Not fair; it can be traced back to Nixon. LBJ, too-- but he didn't get caught;
like, if no one sees your grandson with his paw in the cookie jar it's as if no cookies are missing. That's the way it ought to be, but that is the way the game is played. Half of the Christians I know look at porn, but as long as the wife doesn't catch them they get a pass.
I mean, you act as if Obama INVENTED corruption.
Alan Brooks| 5.17.10 @ 4:40PM
The new normal, Deb? you mean the
old-normal, correct?
Deborah D | 5.17.10 @ 5:24PM
No, I meant new normal. They've brought this corruption to a gargantuan level and they also have the media in their back pockets. The media brought down "I am not a crook" Nixon -- but they look the other way with Obama inc.
RoBoTech| 5.18.10 @ 11:09PM
No, contrary to Liberal beliefs, Obama didn't invent corruption, but, that statement will coming soon.
No he didn't, but he has developed it to a high art form.
But regardless WHO did, it's not RIGHT, and we'll find, eventually, not legal.
So please stop playing that "little johnny did it first" grade school playground tripe. Corruption is corruption, PERIOD!
RoBoTech| 5.18.10 @ 11:09PM
No, contrary to Liberal beliefs, Obama didn't invent corruption, but, that statement will coming soon.
No he didn't, but he has developed it to a high art form.
But regardless WHO did, it's not RIGHT, and we'll find, eventually, not legal.
So please stop playing that "little johnny did it first" grade school playground tripe. Corruption is corruption, PERIOD!
PaulD| 5.17.10 @ 6:55AM
The White House is infested with vermin.
Timothy L. Pennell| 5.17.10 @ 7:10AM
They will never let this see the light of day. BUT. There's an ELECTION in NOVEMBER. After that, we start picking this CROOK apart.
Alan Brooks| 5.17.10 @ 4:47PM
So you can get another Rove in power in '13 or '17?
You are gluttons for punishment.
Jim| 5.18.10 @ 12:49PM
Do I detect a communist union member who has never done an honest days work in his life?
Connie| 5.19.10 @ 2:43AM
Alan.....son.....you are obviously too far left to understand reason, under 30 - more likely either a college student or recent graduate who had far too many Socialist professors.
What you need to comprehend first and foremost, this isn't a group who will hold your hand and talk with you in gentle phrases with regard to removing your head from your personal dark area on your body. We will let you know where you are misinformed and why. In addition we will tell you the truth as your left buddies will never attempt. You see, they are IDIOTS too!
It's beddy bye time. Grab your piddow and blankey and head to your room for a mush needed rest. Tomorrow is another day to try to spread you ill informed rubbish...but please, take it to a leftist blog when you do.
K962| 5.17.10 @ 7:23AM
The whole mess wreaks of corruption! Slimy Chicago mob politics.
Alan Brooks| 5.17.10 @ 4:52PM
Now hold on a sec, I've spent time down South;
it is just as corrupt there as anyplace in Illinois.
"Oh heavens to Betsy!"...
you sound like old women talking about herpes.
RoBoTech| 5.18.10 @ 11:14PM
And YOU sound like an immature brat whining about "little johnny did it first".
WHO CARES who HAS been corrupt. Fact is, OBAMA and his Chicago Socialist Cronies are corrupt, RIGHT NOW!
Go back to the child's table and scream at mommy for not cutting up your spam correctly. Adults are trying to have a discussion here.
Nobama| 5.19.10 @ 3:39PM
Alan's not young; he's an old fart raised by crazy ultra-leftist parents. He's been posting on this site for over a year, and every month that passes Alan gets meaner and crazier. He's a pervert, too--don't get him started on Sarah Palin.
He even defended the lying coward, Blumenthal!
rubea ross| 5.21.10 @ 12:11AM
i doubt any state is as corrupt as illinois and obama came straight from the depths of the illinois cesspool so if anyone out there thinks that he made it as llinois senator and then u.s. senate and president by being nice clean cut honest man...........HAHAHAHAHAHAHAHAHAHHA. he's a piece of shit pond scum and you all know it
Mattled| 5.17.10 @ 9:15AM
WITWIR?
Where in the world is Rezko?
By now a book offer should have been made for millions upon his release. He is done otherwise.
Give up the goods on Odoogie ---including his trysts both male and female-----and he is rich for life on residuals. The printing presses wouldn't be able to keep up with the demand---of course there is Kindle.
Alan Brooks| 5.17.10 @ 4:57PM
"including his trysts both male and female"
That's mandatory in publishing today. Escorts? why of course. Underage trysts? an extra chapter! photos? up the price from $8.99 to $9.99
Stephie| 5.17.10 @ 9:16AM
Chicago, a Third World city.
Alan Brooks| 5.17.10 @ 5:05PM
Why is it worse than Little Rock?
You people have merely substituted Obama for Clinton (the "most corrupt politician in...") and Chicago for Little Rock ("the most corrupt city in...")
krj| 5.17.10 @ 10:55AM
This government is the most corrupt government in the history of the world! Wake up America
J.P. Travis | 5.17.10 @ 11:09AM
Welcome to the future, where crooked politicians and their politically correct green causes bankrupt the nation, but they save anybody who happens to be their friend. Obama a crook? You bet: http://www.jpattitude.com/Democrats.php#obama
Jenny| 5.17.10 @ 11:30AM
Thank God Chicago didn't get the Olympics.
sinanju| 5.18.10 @ 3:50AM
Jenny, the real reason Chicago didn't get the Olympics regrettably has little to do with that city's corruption, indeed, considering the scandals of recent years, the IOC would have felt right at home.
No. The problem is the multitudinous roadblocks of Homeland Security in all it's varied and petty bureaucratic forms. Thousands of athletes, family members and support personnel streaming in from all corners of the globe coming through O'Hare airport would have been unworkable. There are hundreds of people arbitrarily placed on extra-screening and no-fly lists for the most bizarre and incomprehensible of reasons and while there are procedures to complain about it, there is NO redress. I've seen the process in action from the inside. There are cutesy form letters and polite voices on the phone and they all say there's nothing they can do about it and have a nice day. They do nothing to correct the problem. This makes holding the Olympics in the U.S. of A. a physical impossibility for the forseeable future.
Oldefarte| 5.17.10 @ 11:35AM
I guess it's the old story about IT'S NOT A QUESTION OF 'WHAT' YOU ARE; BUT RATHER A QUESTION OF 'HOW MUCH YOU CHARGE'!!!!
Matt| 5.17.10 @ 11:52AM
Well, we know that at least 45% of the US won't realize what the Obama administration is doing. They are the most obvious criminals in the White House since Grant's cronnies, but with no media coverage, Obama remains popular even as his thugs continue to steal money directly from US taxpayers. Hopefully we figure it out before we lose everything!
Alan Brooks| 5.17.10 @ 5:00PM
"Obama remains popular even as his thugs continue to steal money directly from US taxpayers."
Because the public is v. happy Bush is back in Crawford.
RoBoTech| 5.18.10 @ 11:18PM
Not only are you a whiney immature brat, but now you are telling us that The BushBoogey is still under your bed? My Gawd LibTotty, how horrible your life must be to live in the past. It's 2101, Libtotty, Bush is gone, except in YOUR Fantasies and Nightmares.
Sorry that your mommy can't make the bad "lil Bush Boogey" go away, there there little Libtotty, maybe that spam will be better tonight!
Good luck with that.
Connie| 5.19.10 @ 2:49AM
RoBoTech: Love your reply to Little Alan Leftoffwits Brooks.
rubea ross| 5.21.10 @ 12:17AM
you know that ole bush line is getting kinda old..you act like you think that everyone who hates obama liked bush..well, they didn't like bush and they hate obama..obama is one evil criminal chicago thug and he will get his due but in the meantime...give it a rest with the bush shit and the racist shit and all that other shit you lefties keep spewing because you cannot discuss any issues or backup anything you say with facts..enout already
Joe| 5.17.10 @ 12:19PM
You are right, Ret. Marine. This Administration is the most curropt in the history of the US. It makes Chavez look normal.
Pete| 5.17.10 @ 12:40PM
It seems some coporations are less "evil" than others these days, huh? This is the reason retail investors are shunning the stock market.
Seek| 5.17.10 @ 1:19PM
I can remember back in 1992 when Chicago's South Shore Community Bank, thanks to the Clintons' campaign publicity, was the prime examplar of how grass-roots community organizing could turn a profit. Every policy wonk was supposed to give it great press.
I always smelled something fishy about this, and now I know I was right. The "investments" were in projects that couldn't wouldn't be paid back. Obama and the Clintons were both knee-deep in it.
Deborah D| 5.17.10 @ 2:22PM
Okay, I just wrote a great comment that did not get printed. So, I'll leave off my website so maybe they won't think I'm spam. Here we go again --
With Obama giving taxpayer dollars to his union cronies via the Stimulus Bill and giving them stake in two (now America owned) car companies via the bailouts of GM and Chrysler, and not doing anything to get those favored cash cows for Democrats, Fannie and Freddie, on the right track...why would he not think he could continue the rape of the American taxpayer by bailing out a favored Chicago bank? Who's to stop him? There's no such thing as a watchdog press (present company excluded, Mr. Prowler) to hold him to account. We have a crony lightweight for an Attorney General and a corrupt Democrat-led Congress. Why shouldn't he think he can get away with anything? Pretty soon nothing will seem corrupt because everything this administration does seems to be corrupt. They've set a new standard. Chicago politics on a national scale. Look at Illlinois -- not as bad as CA, but well on it way. Same folks are running the country.
Pete| 5.17.10 @ 2:28PM
So sad and so true. This guy is getting away with things no other "leader" in this country ever could on a daily basis. Liberal AND black (half?), the mainstream media won't dare question him on anything.
Connie| 5.19.10 @ 3:06AM
DD: Please don't, not for a moment, make the comparison between IL and CA. Trust me, as a long time resident of SoCal, I can attest there is nothing in this state that could ever reach the depth of the corruption that has ruled Chicago and much more of IL for decades. We've had some bad news Dims (sic) in office, but nothing compared to the level of those in the hell hole of IL. I will admit NoCal has punished the rest of the state with Pelosi, Boxer and Feinstein. All nasty bitches to put it mildly. But the reign of terror is about to come to a screeching halt. Sadly, the Republican party - State and National - hasn't put anyone forward worth our vote, including RINO Awnald. The most known running now is another RINO who is now pulling a McCain and trying to counter earlier statements which proved her to lose backing - mine included. Many Dims have begun to see the light here in the Golden State - at last! Hopefully we will elect a Repub. who will put an end to all the garbage with which this state has had to deal, most of which has to do with the supporting of illegals on our welfare and the out of control Calpers (retirement for govt. workers) level put into law by Gray Davis (pre-Awnald) who was abruptly dumped via recall.
Bill Hussein O'Stalin| 5.17.10 @ 4:40PM
Here's something that may tie in. The article explains how the Obama administration is helping ACORN go global, while keeping mum about ACORN here. Just another theft of taxpayer's funds in progress. If you will note they are also in Kenya. The banks funds are probably being siphoned off for socialist causes, therefore the intervention.
http://dailycaller.com/2010/05.....socialism-–-in-india/
May 17, 2010
Obama administration helps ACORN defend socialism – in India!
By Matthew Vadum - The Daily Caller | Published: 05/17/10 at 4:43 AM | Updated: 05/17/10 at 12:07 PM
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United States ambassador to India Timothy Roemer meeting with rag pickers in Dharavi, a slum in the suburbs of Mumbai (US Government)
While the Obama administration runs away from ACORN here in the United States it is quietly embracing ACORN overseas.
The Obama administration is using U.S. government resources to help the embattled radical advocacy organization spread the gospel of left-wing community organizing in India.
President Obama’s ambassador to India, Timothy J. Roemer, recently lent his name and the prestige of the U.S. government to ACORN India’s efforts to organize rag-pickers in Mumbai (formerly known as Bombay). Roemer is a former Democratic congressman who represented an Indiana district.
The website of the U.S. embassy in India displays a photograph from May 11 in which Ambassador Roemer is shown meeting with rag pickers in Dharavi, a slum in the suburbs of Mumbai. The official caption accompanying the picture indicates Roemer was discussing “ACORN India’s local waste management and recycling program.”
The Indo-Asian News Service confirmed in a report that day that Roemer spent time at the ACORN facility and met with ACORN India representative Vikram Adige.
The U.S. consulate in Mumbai, headed by Consul General Paul A. Flombsee, also co-sponsored a water conservation event on March 22 with ACORN India. Flomsbee is listed as the expected guest of honor at the event on ACORN India’s website.
ACORN India reports to ACORN International, which now goes by the name Community Organizations International. ACORN International serves as an umbrella organization for the various national organizations conducting ACORN’s business outside the U.S. ACORN International’s Facebook page describes the group’s mission as “building community groups in low income communities across the world to organize for power.”
ACORN International is active in Argentina, Canada, Dominican Republic, Honduras, India, Kenya, Mexico, and Peru.
Read more: http://dailycaller.com/2010/05.....socialism-–-in-india/#ixzz0oDmok9AM
Deborah D | 5.17.10 @ 5:27PM
We're in big trouble. Thanks for the link. How do we combat this?
Steven K| 5.17.10 @ 8:13PM
We combat it at the ballot box Deborah. Put this outfit in the wilderness and keep them there for a generation at least. That is how long it will take to fix the damage the left/dem/socialists have done.
Marc Jeric| 5.18.10 @ 1:04AM
Chicago-type corruption is the least of it. Abu Hussein-al-Nairobi, our Community Organizer-in-Chief, has much grander plans for us - a total communization of America. His 36 komissars are at work 24/24 - 7/7; he will get his cap & trade one way or another, preferably before the November elections, or the EPA will do it on its own.. After nationalizing auto industry, some banks, Fannie and Freddie, some insurance companies, there will be then oil & gas companies, coal mines, electricity companies...
Yosemeti Sam| 5.18.10 @ 2:01PM
" ... ShoreBank ...."
Now, it must have vaults - right?
Is it possible that one of them has that Mao Zedong White House Christmas tree ornament
for - safe keeping?
BA Cyclone| 5.18.10 @ 2:54PM
Crony capitalism. Exhibit A.
Amy | 5.18.10 @ 8:55PM
Here's more..check this out!! About micro background,the branches start from 2008..hope it helps.
http://www.unrwa.org/etemplate.php?id=23
fdjk| 7.1.10 @ 3:45AM
beijing massage
UGGS UK | 7.20.10 @ 4:09AM
The Little Admiral , Sestak started this ,then plays cutsie , " I'm not tellin' who Da Big Bad Man was & what color lollipop he promised to give me ...." .
Now Sestak thinks he can walk away from it.
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