Liberty on Tap since 1984
While many similar financial institutions have been allowed to fail, Chicago-based ShoreBank is getting propped up by the Obama Administration, which allegedly pressured Goldman Sachs, Citigroup and others to send some cash to the community development lender. This, according to news reports, would then enable ShoreBank to qualify to receive $75 million in TARP funds. The Central Illinois 9/12 Project has outlined in detail the various connections that the president and his associates have had with those who are tied to the bank. So too has Republican Congressional candidate Joel Pollak, who is challenging Illinois Rep. Jan Schakowsky (who has passionately recommended the bailout of ShoreBank) in November.
I've weighed in over at the National Legal and Policy Center with a "remember when" piece, about how the two top directors for the Community Development Financial Institutions Fund were caught steering nearly one-third of CDFI's 1996 awards to ShoreBank entities -- also known at the time as "Clinton's favorite bank" -- with no records explaining why they were granted the money. Rep. Spencer Bachus, Alabama Republican, has requested records related to the White House's alleged pressure on the big banks to help. He was the one who led the investigation into CDFI/ShoreBank back in 1997-1998 as well.