ShoreBank rescuers OK more time to line up federal aid

Crain's Chicago Business reports:

The coalition of Wall Street firms and big banks pledging $150 million to rescue ShoreBank Corp. have agreed to a three-week extension of their deadline for the community bank to obtain accompanying federal bailout funds.

The $2-billion-asset lender in low-income urban neighborhoods had until today to line up the federal funds, but the Federal Reserve Board’s reluctance to back the rescue continues to cause delays.

Under the new extension, ShoreBank has until Aug. 6 to win the needed $75 million from the Treasury Department’s Troubled Asset Relief Program, according to people familiar with the matter.

The struggles of a politically run economy.