ShoreBank Successor Named Crooked Contractor to Board

It’s only been four months since the FDIC seized the Obama-favored ShoreBank, changed management, adjusted some of the director oversight, and kept the machine running as Urban Partnership Bank. But it turns out a name change makes no difference when it comes to institutions born, raised and protected under Chicago politics. Crain’s Chicago Business reports:

Urban Partnership Bank, the successor to ShoreBank, late last week hastily withdrew the application it had submitted to state banking regulators to name as one of its directors Donald Beal, owner of Arrow Lumber Co., the South Side firm just barred from doing future business with the city after admitting to defrauding it.

Arrow Lumber is a customer of Urban Partnership Bank, a bank spokesman confirmed. The new lender was financed by a host of Wall Street giants like Goldman Sachs Group Inc. and formed in August to take over the

Chicago Bosses Indicted by Federal Grand Jury

A federal grand jury in Chicago returned an indictment Aug. 4 against two union bosses for engaging in a pattern of criminal activity that included fraud, soliciting kickbacks, money laundering, and illegal currency transactions. The criminal indictments were returned against John Serpico and Maria Busillo, both executives of the Central States Joint Board. CSJB is a labor group that administers pension and health-welfare plans for eight Chicago-based local unions, including LIUNA. Serpico also heads the Ill. Int’l Port Authority and has been a major political patron of Ill. Govs. James Thompson (R), Jim Edgar (R) and George Ryan (R) as well as Chicago Mayor Richard Daley (D).

Serpico was CSJB president from 1975-94 and is still a consultant. Serpico was also a LIUNA vice president until he was forced to resign as a component of DOJ’s effort in 1995 to rid the union of corrupt influences. Busillo is the current …