FOX NEWS REGISTER LOGIN CHANNEL FINDER
HOME VIDEO MARKETS SMALL BUSINESS PERSONAL FINANCE ON AIR MY MONEY HOME OFFICE
|Respond to Editor|
ByCharlie GasparinoFOXBusinessLawmaker Seeks Investigation Into ShoreBankBailout
Fox Business Video
Fed Officials Upbeat on EconomyPeter Morici Sounds Off on Fin...Fed, Treasury Tackle Financial...Small Businesses Most Worried ...L.A. Looks to Lower Tariff for...
Last 5 Stocks
Find More Stocks
Ticker Company Price Change
IFixit lays bare Microsofts Kin smartphone
Search quotes, news and video
Monday, May 17, 2010
Lenders Agree to Prop Up Ailing ShoreBank
Some of the nation's largest banks have agreedto contribute enough money to save Chicago-based ShoreBank, the community lender withstrong ties to the Obama administration, FOXBusiness has learned.The banks have agreed to contribute $140million to bail out the bank, while the federalgovernment will donate tens of millions more,according to people close to the talks. In addition to major Wall Street firms like Goldman Sachs (GS),which agreed to contribute $20 million to the bailout effort, as well as Citigroup (C) and JPMorgan (JPM),
General Electric's (GE) GE Capital will also contribute $20 million to the rescue effort. All the firms have eitherreceived massive government assistance during the financial crisis or, in the case of Goldman Sachs, arefacing multiple regulatory investigations into their business practices.The bailout has been controversial. Senior Obama adviser Valerie Jarrett served on a Chicago civicorganization with a director of the bank, and President Obama himself has singled out the bank for praise inlending to low-income communities.But the bank has made its share of bad bets, and some of the Wall Street firms that have given money havesaid they've received political pressure to contribute to the bailout of a business that under normalcircumstances would have been left
It's still unclear how much the federal government will contribute to save the bank because it's unclear exactlyhow much
is needed to save the institution, which without the bailout would have been taken over by the FDIC.
An announcement on the bailout is expected Tuesday morning.