Friday, August 6, 2010

ShoreBank facing failure?

Courtesy of Chicago Business Today with regards to yesterday's news that ShoreBank may not receive any federal bailout funds. In this video host Lisa Leiter speaks with Crain's reporter Steve Daniels. Duration is just over four minutes.

UPDATE 12:31 PM Greater Chatham Alliance send out a link to this Sun-Times article about ShoreBank's impending failure:
The clock is ticking closer to midnight for Chicago's ShoreBank Corp.

The South Shore-based lender, renowned nationally for its support of low-income borrowers, could be closed within days by federal regulators. It has failed to secure a $75 million federal bailout as a follow-up to $145 million it raised in May from Wall Street's biggest players.

A source said ShoreBank has control of the private capital only until today, but may announce a deal for a short-term extension of the commitment. The extension could allow the bank a few more days to hunt for additional equity.

ShoreBank has been trying to raise at least $200 million. The federal bailout was a crucial piece, but banking industry experts said the Federal Reserve has been put off by continued declines in the institution's financial condition.

The bank lost $39.6 million the first six months of the year, according to a report it submitted to regulators. In 2009, it lost $119 million.

The report showed ShoreBank being hammered by bad loans to apartment buildings with five or more units. It said it had $103 million in loans to such properties on which no payments are being made.
Chathamites might care somewhat because ShoreBank's earlier incarnation bought out the old Independence Bank @ 7936 South Cottage Grove Avenue which is now a branch of ShoreBank today.

No comments:

Post a Comment

PLEASE READ FIRST!!!! Comment Moderating and Anonymous Comment Policy

While anonymous comments are not prohibited we do encourage you to help readers identify you so that other commenters may respond to you. Either read the moderating policy for how or leave an identifier (which could be a nickname for example) at the end of the comment.

Also note that this blog is NOT associated with any public or political officials including Alderman Roderick T. Sawyer!