Goldman Sachs CEO Lloyd Blankfein, center, listens as President Barack Obama addresses the Business Council in Washington, May 4, 2010. (AP Photo/Susan Walsh)
Tribune staff report | Troubled Chicago lender ShoreBank has received recent interest from Wall Street giant Goldman Sachs for several reasons.
The Tribune reported Wednesday that ShoreBank has generated little interest among strategic buyers, according to banking industry insiders, but it is counting on an infusion of about $75 million in capital from the U.S. Treasury. First, it must line up more than $120 million in capital from various banks. As the Tribune reported, existing investors such as Chase and Bank of America, as well as charitable foundations, are weighing additional investments in ShoreBank.
But Goldman Sachs is a more recent sign-on — the bank agreed to commit about $20 million to ShoreBank.
ShoreBank has strong ties to Washington. The
Wall Street Journal reported Friday that President Barack Obama drew attention to ShoreBank’s micro-lending
efforts while traveling in Nairobi as a senator. And
co-founder and now president Mary Houghton offered advice on small-business lending to the president’s mother, who worked on similar
issues in Asia.
Fox Business Network reporter Charlie Gasparino, who reported Friday
afternoon that ShoreBank is short about $25 million of the $125 million
they need to avoid an FDIC takeover, also noted that Valerie Jarrett, President Obama’s senior adviser, served on the board of Chicago Metropolis 2020. Chicago Metropolis 2020 is a civic organization which was run by Adele Simmons, a director at ShoreBank.