Thursday, August 5, 2010

ShoreBank unlikely to get U.S. bailout money: report

ShoreBank Corp. is unlikely to get $75 million in federal bailout funds it needs to survive, Bloomberg News reported Thursday morning.

The South Side bank, which specializes in lending money in lower-income neighborhoods in Chicago and elsewhere, is under regulatory orders to raise capital to shore up a balance sheet shredded by losses on real estate loans.

The bank negotiated with leading Wall Street banks for an infusion of $145 million. But that money was contingent on federal authorities kicking in an additional $75 million. Without the federal funds, the deal with Wall Street would collapse, setting the bank on a course for failure.
There are those who are ok with this and of course those who won't be!

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