ShoreBank bailout protest draws about 30

Posted June 9, 2010 at 2:06 p.m.

By Becky Yerak | About
30 people showed up downtown at noon Wednesday to protest the expected
federal bailout of ShoreBank, the troubled South Side lender.

Last month, ShoreBank firmed up commitments for about $135 million in
new capital from such private sources as Goldman Sachs, Citigroup, Bank
of America, Chase and General Electric. With the private capital,
ShoreBank might also be eligible for about $75 million in money from the
U.S. Treasury. It’s  finalizing the deal.


The protesters included members of Tea Party Patriots Chicago as well as supporters of Joel Pollak, the Republican nominee for U.S. Congress in the 9th District of Illinois. He’s challenged Rep. Jan Schakowsky, a Democrat who pushed hard for federal help for ShoreBank.

Pollak said taxpayer dollars shouldn’t be used to bail out ShoreBank.

Also on hand was Isaac Hayes, Republican nominee for U.S. Congress in the 2nd District against Jesse Jackson Jr. He pointed out that nothing was done to help Chicago-based Park National Bank, which was known for its community activism but failed after the government decided to not give it any money from the Troubled Asset Relief Program. Dozens of other Illinois banks have also failed, he said.

“They have political friends in high places,” he said of ShoreBank.

“No Bailout. Audit ShoreBank,” read one of the few ShoreBank-related signs.

The White House has said it wasn’t involved in efforts to help ShoreBank.

 

3 comments:

  1. jack (me) June 9, 2010 at 2:21 pm

    Were Alexi and Demitrius there?

  2. Some facts June 10, 2010 at 12:05 a.m.

    “No Bailout. Audit ShoreBank,” read one of the few ShoreBank-related signs.
    Are these people serious? Commercial banks are one of, if not the most regulated industries on the planet. They are audited all the time by multiple entities.
    Every serious person knows that ShoreBank is one of the most respected lenders out there. They’ve been in troubled communities where other banks didn’t want to go. The big banks are helping with this capital infusion because they partner with ShoreBank to help their own Community Reinvestment Act compliance.
    If ShoreBank goes down, who will go and work with needy borrowers in the poor neighborhoods. Today’s protesters? I doubt it.
    There are lots of things to be unhappy about re the Obama administration. But complaining about ShoreBank is a nonsensical place to focus. ALL banks are “politically connected” to some degree. ShoreBank is about the last bank I would complain about.

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