Why is Rep. Jan Schakowsky trying to use Illinois taxpayers’ money to bail out ShoreBank?No word yet from convicted felon fundraiser Robert Creamer on this one.
Rep. Schakowsky and fellow Illinois Democrat, Sen. Dick Durbin, have pressured state officials to meet with the bank to discuss a $100 million bailout.
This would apparently be the first bank bailout by a state government–not just in Illinois, but in any state.
The reason ShoreBank is in trouble is quite simple: it made too many bad real estate loans, and fell below the capital requirements required by regulatory authorities.
Its political supporters point to its mission of helping borrowers in low-income communities. But ShoreBank is hardly the only struggling bank to serve those customers.
Why is Rep. Schakowsky only helping ShoreBank? After all, when the Bank of Lincolnwood failed last year, Rep. Schakowsky did not save it–and that bank, unlike ShoreBank, was in her own district.
The answer may lie in the history of campaign contributions by ShoreBank executives and employees.
Federal Election Commission records reveal that ShoreBank executives and employees gave thousands of dollars to Rep. Schakowsky and Sen. Durbin.
They also gave heavily to Barack Obama’s presidential campaign. Indeed, Crain’s Chicago Business reports that “President Obama and the first lady are former neighbors of ShoreBank executives.”
Tuesday, January 19, 2010
Rep. Schakowsky's ShoreBank Bailout
Big Government reports on Comrade Schakowsky:
