Danny Davis

Political Pressure Saved ShoreBank Management

Geithner photoAmong other things, it looks like the Chicago lobbying to save ShoreBank paid off. Earlier this month I discovered a letter sent by Windy City power player and big Democrat donor Lester McKeever, Jr., to Treasury Secretary Timothy Geithner, which urged his intervention. "It is my hope," McKeever wrote, "and one shared by others who care deeply about its most vulnerable communities, that the ShoreBank recapitalization plan with investment coming from the U.S. Treasury will enable it to continue servicing its customers and fulfilling its mission."

Can Chicago Lobbying Save ShoreBank?

Shorebank logoProbably not. Seems like the more that presidentially-prized ShoreBank gets extensions from private financial institutions (Goldman Sachs, Citigroup, etc.) and from its federal regulators (the FDIC and Federal Reserve), the deeper in the hole it finds itself. Earlier this week the Chicago Tribune reported:

ShoreBank’s capital deficiency worsened in the second quarter, according to newly submitted financial results to regulators, and the Chicago-based lender now needs to raise at least $190 million just to meet targets set out in March by state and U.S. banking regulators….

Blagojevich Aide Harris Pleads Guilty, Agrees to Testify

John HarrisIf former Illinois Democratic Governor Rod Blagojevich thought his problems were behind him, the worst lies ahead. Late in January the state legislature voted to impeach and expel him from office. But it's not just his job but also his freedom that may be lost, thanks to pending testimony from his former chief of staff, John Harris. Harris yesterday pleaded guilty to a federal corruption charge. And whatever details he spills in court aren't likely to make the Service Employees International Union (SEIU) look much better than Blagojevich. Nor are they likely to enhance the reputation of President Barack Obama.

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