ShoreBank of Chicago has failed. Actually they were a dead bank for many months but apparently the FDIC waited until the Obama administration had a ‘deal’ to bailout the bank.
ShoreBank, the hometown bank of President Obama and once praised by the President for making loans to the poor and has ties to the Obama administration as Senior Obama adviser Valerie Jarrett served on a Chicago civic organization with the banks director. It should come as no surprise that ShoreBank was an Obama administration favorite.
And it appears the taxpayers have bailed out the now failed bank and don’t even know it. Bloomberg is reporting that the Tresuary handed over $70 million to facilitate the takeover bailout by the Urban Partnership Bank.
ShoreBank raised more than $145 million from the firms in May and the funds were placed in escrow pending a decision by the U.S. Treasury to provide another $75 million in bank bailout funds. (Bloomberg)
In the FDIC announcement this evening it is disclosed that ShoreBank will be taken over by the Urban Partnership Bank. You say you never heard of the Urban Partnership Bank, well there is a good reason why you never heard of it. Urban Partnership Bank was just recently created for the sole purpose of bailing out the failed Chicago ShoreBank.
And just what is the Urban Partnership Bank? It is name that represents such Wall Street firms like Goldman Sachs Group Inc., General Electric Co., JPMorgan Chase & Co., Citigroup Inc. and several philanthropic groups. Money raised by the Wall Street firms was put in escrow for the purpose of bailing out ShoreBank, but only if the Obama administration would guarantee the members of the Urban Partnership Bank against any significant losses in the acquisition of the now failed bank by establishing a loss sharing agreement.
You would think that after three years of the economic disaster this nation is still in we would have seen it all. Well apparently not, and the administrations promise of ‘no more bailouts’ was just talk and lies.
The official FDIC statement for what its worth…
ShoreBank, Chicago, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Urban Partnership Bank, Chicago, Illinois, a newly-chartered institution, to assume all of the deposits of ShoreBank.
The 15 branches of ShoreBank will reopen as branches of Urban Partnership Bank, including those in Detroit, Michigan, and Cleveland, Ohio, under their normal business hours, including those offices with Saturday hours. Depositors of ShoreBank will automatically become depositors of Urban Partnership Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of ShoreBank should continue to use their existing branch until they receive notice from Urban Partnership Bank that it has completed systems changes.{…}
As of June 30, 2010, ShoreBank had approximately $2.16 billion in total assets and $1.54 billion in total deposits. Urban Partnership Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of ShoreBank. In addition to assuming all of the deposits of the failed bank, Urban Partnership Bank agreed to purchase essentially all of the assets except for the marketable securities and fixed assets.
The FDIC and Urban Partnership Bank entered into a loss-share transaction on $1.41 billion of ShoreBank’s assets. Urban Partnership Bank will share in the losses on the asset pools covered under the loss-share agreement {…} (FDIC)
The Cowlitz Bank, Longview, Washington, was closed today by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank, Olympia, Washington, to assume all of the deposits of The Cowlitz Bank.
Bay National Bank, Baltimore, Maryland, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bay Bank, FSB, Lutherville, Maryland, to assume all of the deposits of Bay National Bank.
The Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of Ideal Federal Savings Bank. The bank was closed today by the Office of Thrift Supervision, which appointed the FDIC as receiver.
USA Bank, Port Chester, New York, was closed today by the New York State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with New Century Bank (doing business as Customer’s 1st Bank), Phoenixville, Pennsylvania, to assume all of the deposits of the failed bank.
Home National Bank, Blackwell, Oklahoma, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with RCB Bank, Claremore, Oklahoma, to assume all of the deposits of Home National Bank.
Peninsula Bank, Englewood, Florida, was closed today by the Florida Division of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Premier American Bank, Miami, Florida, to assume all of the deposits of Peninsula Bank.
First National Bank, Savannah, Georgia, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with The Savannah Bank, National Association, Savannah, Georgia, to assume all of the deposits of First National Bank.
High Desert State Bank, Albuquerque, New Mexico, was closed today by the New Mexico Financial Institutions Division, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First American Bank, Artesia, New Mexico, to assume all of the deposits of High Desert State Bank.
