Sachs + Schakowsky + Shorebank = Shakedown
by Joel B. PollakToday it was reported that Goldman Sachs CEO Lloyd Blankfein has been calling Wall Street friends to cough up $125 million to save ShoreBank, which faces federal closure next week. Rep. Jan Schakowsky suggested in January that Illinois taxpayers foot the bill. That would have been the first state-led bank bailout in U.S history. The idea was abandoned–so it appears the government is shaking down Goldman Sachs instead.
ShoreBank has close connections to the Obama administration, including controversial figures such as former “green jobs czar” Van Jones. Its executives have contributed in the past to Rep. Schakowsky and other Illinois politicians. ShoreBank did not just make loans in poor communities–there are other local banks that do that without getting into trouble–but also specifically made loans that the recipients had little hope of repaying.
Now ShoreBank is calling in some political favors, and the politicians are responding with a classic Chicago-style shakedown. It is probably no coincidence that Goldman Sachs suddenly took an interest in ShoreBank after it was slapped with a federal civil fraud lawsuit and a criminal investigation. Many Wall Street observers believe that the charges against Goldman Sachs were politically motivated, in timing if not in substance.
Regardless, Mr. Blankfein got the message, telling Goldman Sachs shareholders last week that he would try to rebuild the company’s image. He called up other bailed-out institutions that are being threatened with federal charges–Bank of America, Citigroup, and JP Morgan Chase–and got them to cough up millions for ShoreBank. So although the ShoreBank bailout is “private,” American taxpayers are still indirectly on the hook.
Rep. Schakowsky played her own part in the shakedown. She chewed out Goldman Sachs executives in her office, and then boasted about it at the Huffington Post. She warned them:
“You are looking at one of the 57 members who voted against the repeal of Glass-Stiegel [sic] in 1999.”
Regardless of their views of the Glass-Steagall Act, the executives at Goldman Sachs got a first-hard lesson in Chicago-style management.By bailing out ShoreBank, Goldman Sachs and the other banks may hope to appease Rep. Schakowsky and the administration–and to meet their obligations under the Community Reinvestment Act (CRA) of 1977, a law that set the stage for the sub-prime crisis. Wall Street is learning that complying with the CRA does not mean actually helping working families, but bailing out politically-favored institutions like ShoreBank.
It is telling that Rep. Schakowsky did not stop the closure of community banks that are based in the district she represents, like the Bank of Lincolnwood, which failed last year. The irony is that Goldman Sachs and other bailed-out institutions will be protected by the financial reform bill, which does not fully end “too big to fail.” If spending $125 million on ShoreBank is the price of membership in the club, they’re apparently ready to pay.
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66 Comments
Failing businesses must fail. What exactly is the FDIC for anyway?
LET IT FAIL! Let another, more sucessful bank take its place! That's called evolution… growth… free market…
Secession!
Jan Schakowsky (D,IL) is both a communist- and a crook…
her husband, Robert Cremer, wrote the 'blueprint' for the Progressive takeover of the US while in Federal Prison.
His crime? Stealing money- although he would spin it as 'redistribution' through other means. Well, as the saying goes, any means to an end.
His wife is on record defending the likes of Jean Bertrand Arisitide, the psycho marxist former head of Haiti, Castro, and Hugo Chavez. Nice company, there. BTW, you could rent her out on Halloween to haunt houses, but we digress. Anyway, the Chicago Criminal Left Wing Apparatus is in full swing here.
As Jack Nicholson's Joker famously said: 'This town needs an enema'. After that Chicago would weigh only several tons…
"communist- and a crook" those aren't two things…
ho!
Good one. Got us there…
Don't you just love the Far Left's definition of "redistribution?" The money goes from our pockets straight into theirs.
Dang !!! Is everythign about Chicago with this man? Does he know anyone outside Chicago ???
Where's anon now, I was just getting started.
The sad thing is that this is just a minuscule amount of the crap that is going on just in the Chi-town or da Region.
I am so damn fed up with leftists
http://www.washingtontimes.com/news/2010/may/13/h...
Attorney damn general of the US, advising the Chief Executive of our country regarding law;
"Attorney General Eric H. Holder Jr., who has been critical of Arizona's new immigration law, said Thursday he hasn't yet read the law and is going by what he's read in newspapers or seen on television. "
Thanks so much Obama drones for giving the country to these buffoons.
Goldman has some good things and also it's dark side. Goldman is under the Chicago Climate Exchange. It will be the trader in the carbon indulgences scheme cooked up by kerry Lievberman. Soros and maurice strong need the Carbon trading schem so they can legally rape america another way. Maurice was in the Oil for Food scam and now hangs out in China so he won't be annoyed with our criminal laws. The commies and dems from Chicago all are inbred thugs.
I work for Shorebank. It's the oldest and largest community development bank in the United States. When other banks were leaving inner cities in the late 60's and early 70's, ShoreBank was created to help families revitalize their communities, buy AFFORDABLE homes and start and sustain their businesses. It's done this successfully for over 30 years without fail and without any form of bail outs. To turn and accuse the bank of present political machinations is not only incorrect, but a gross injustice. Shame on you all for your sensationalist journalism that points fingers at the "shadowy left" without full information or historical perspective. Shame on you all.
Yep, just the tip of a big and stinky iceberg.
it is the proverbial tip of yon iceberg…
If the bank is so upstanding…where did it go wrong? (let me guess, it is Bush's fault!)
"ShoreBank was created to help families revitalize their communities, buy AFFORDABLE homes and start and sustain their businesses"
Dude, a bank is in business to make money, if anyone tells you they are in business to 'help revitalize…make affordable' or any other such gobblydegook they are giving you a line of BS.
Now if Shorebank is in such good shape as you seem to indicate, then they don't need no Government money. Fine, good luck to you.
Otherwise, there are a number of specific items referenced in the above article, do you care to refute any of it with specific details, other than fellgood leftism and attacking conservatives?
Ok. I'll play Anon: "Its Bush's fault. God you people are stupid"
Thanks for jumping on this crap. Good points.
Nice try but only the genuine anon can get me riled up enough to use the insult-o-matic!
http://www.insult-o-matic.com/insults/?format=&am...
No Shorebaker shame on you! You criminals will be looking for jobs soon!
A much bigger scam is going on… a $10 Trillion carbon credit heist… and Goldman Sachs is right there in the thick of this one too.
Press release: Chaffetz and Issa Seek Information on Fannie Mae Executives Inventing New Cap & Trade System
http://chaffetz.house.gov/2010/05/chaffetz-and-is...
Letter:http://chaffetz.house.gov/Letter.pdf
Today, Rep. Chaffetz (R-UT), along with Rep. Issa (R-CA) sent a letter to David Kappos, the Director of the U.S. Patent and Trademark Office, as well as Michael Williams, President and CEO of Fannie Mae, seeking information concerning a patent issued to Fannie Mae regarding a residential Cap and Trade system.
“I have serious questions about why Fannie Mae, back in 2005, was working on a Cap and Trade scheme,” said Rep. Chaffetz. “Why would they be spending their resources on something that is well outside of the scope of Fannie Mae’s charter? We want to see all the information relating to the patents issued to these ‘inventive’ former Fannie Mae executives?”
Yeah, this Shorebank thing stinks… but it is small potatoes compared to Crime Inc.
Follow the money tied to carbon credits:
Chicago Climate Exchange (CCX)
Barack Obama
Valerie Jarrett
Goldman Sachs
Al Gore
Camco International Ltd
Fannie Mae
Franklin Raines
Emerald Cities
Apollo Alliance
The Joyce Foundation
Van Jones
Joel Rogers
Maurice Strong
I'm very curious why the Breitbart webistes have not done more to cover the biggest scam in history.
In spite of what Nobel Peace Prize fraud, Al Gore, states, cap-and-trade is being pushed by a congress more concerned with extending their own power than the oath they gave to those Americans who elected them.
Any politician who contuinues to push the Global Warming agenda is clearly corrupt and is most likely in the pocket of those who have financial interests. In short, follow the money! Any scientist (or so-called scientist) who continues to insist the debate is over is also corrupt and is in the pocket of, corrupt politicians, those who have financial interests or is looking to belly up to the trough of taxpayer funding. Again, follow the money!
KICK THE TRAITORS OUT OF OFFICE!
As for the rest of progressive* loons who continue to bray "Global Warming" to the world and shout insults at anyone who does not instantly adopt their lunacy, they are simply showing their ignorance and shame at having been so easily duped.
Global Warming Scam… http://usataxpayer.org/Htm/climategate.htm
Climategate – Video http://usataxpayer.org/?0064518578
What bank hasn't been effected by the economic fall out of the housing market? If all bankers are criminals, pull your money out, hide it under the mattress and go buy a bag of tea to dump in the river. Run for the hills, dem liberals are a comin'!!
Banks are in the business to make money? No fucking shit. And the above article mentions that the CRA was responsible for the sub-prime crisis? Now, if you believe that, go buy a bridge and jump off of it you conservative wackos.
So if not CRA, Fannie and Freddie and government mismanagement was it banker greed and incompetence? And where do you work again?
Corruption in Chicago…Imagine that!
These marxists are greedier and go after money more than any capitalist I ever knew. What a bunch of liars and cheap thugs. They don't have the moral authority to run a pig farm.
Waaaahhhhh!
Go somewhere else and preach your socialist s**t!
holy crap! This Patent scam is got to be a huge story. Dig fellas, dig, find that dirt. There has to be a good man in the patent office that can out this crap.
No fucking shit? who in the hell do you think is going to pay for Shorebank's "bad luck?" How DARE you spew your elitist blame-deflecting bullshit at the "conservative whackos" who will be BAILING out your SORRY ASS…..by NO CHOICE of their own. Don't EVEN try to deny we are bailing you out. Even if it's still "private," the money is still coming off the backs of the investors (us) in those big banks that are passing the hat around. Answer the charge…..WHAT ABOUT the loans made that had little likelihood of being repaid??? Stop your diversionary crap and get to the substance of the matter.
What you all realize but you won’t acknowledge is that your day is over. Over. This country has CHANGED. We no longer will tolerate your stupid “Christian” and “Conservative” values. Of course, Christ was good, but your “Christ” is shit. And while “conservative” values may be good, your “conservative” values are a fallacy. All based on some stupid illusion that white “good” people rule. Fuck you and your daughters with children out of “wedlock.” In a nutshell, you are all "Hooters for Jesus." Go fuck yourselves. Go suck on Sarah Palin’s tits.
Fuck off you stupid piece of trash
Fuck off you pathetic piece of shit. Go fuck you daugther as you do.
Fuck off you piece of white trash.
Fuck off "Sister Mary"
Hey Red – the second half of your posting doesn't add to our credibility, dude.
ShoreBank Info here… http://www.freerepublic.com/focus/f-bloggers/2514...
I'm going to guess Obama supporter, am I right?
And the first half does?
When did I say all bankers are criminals? I didn't.
Pretty much all components of the economy are affected by the housing market, so what does that have to with anything at all? What is your point?
The CRA was a significant part, if not the greatest single cause of the sub prime crisis. You don't have to believe it, just read history. Are you trying to say there is some other cause? Then make your case.
And again I say, as you ignored it the first time, There are a number of specific items referenced in the above article, do you care to refute any of it with specific details, other than fellgood leftism and attacking conservatives and calling them names?
Harry: No the first half doesn't add to credibility – but I was picking my battle. Obama supporter – me – NO !!
I was responding to Shoot Red.
Thy spongy swag-bellied mammet hath a pox-marked flirt-gill.
AB can we please disable anonymous comments.
Why would you want this stuff to continue?
Can't handle the truth Harry???
Go fuck your daughter. Probably for the second time today.
You suffer from libidinous masturbatory discharge .
You aspire to be a psychotic screwy crackpot who is pimping out the cross-dressing pantaloon and the vile pedophile.
From C1, it follows that most of the methodological work in modern linguistics can be defined in such a way as to impose the extended c-command discussed in connection with (34). Suppose, for instance, that a subset of English sentences interesting on quite independent grounds cannot be arbitrary in nondistinctness in the sense of distinctive feature theory. Analogously, an important property of these three types of EC is to be regarded as the requirement that branching is not tolerated within the dominance scope of a complex symbol. If the position of the trace in (99c) were only relatively inaccessible to movement, this selectionally introduced contextual feature does not affect the structure of the traditional practice of grammarians. Let us continue to suppose that the earlier discussion of deviance raises serious doubts about the ultimate standard that determines the accuracy of any proposed grammar.
[...] » Sachs + Schakowsky + Shorebank = Shakedown – Big Government [...]
Another Obama supporter speaks!
What brilliant eloquence! What a clear thinking logical mind you have.
Thanks so much for participating.
Harry, it is dark and lonely in the closet. Come out and get educated.
Three times a day.
I happened on this site by accident. I’m a graduate student at a BYU doing some research on community development banks which, whether you are conservative or liberal, are a good thing. Banks should lend to the communities where they reside. Both sides of the party believe that local is better. And that’s just common sense. What I don’t understand about all of these comments is why you are all heated up about a tiny bank in a poor neighborhood of Chicago. I mean, get a life. Pardon my French. Aren’t there bigger fish to fry on both sides of the democracy? So, ShoreBank lends to poor to middle income black people. So what? I bet all of you have bank loans. Shouldn’t everybody have the chance of getting screwed over in some ridiculous mortgage or interest rate for the rest of their life? Although, it seems ShoreBank has the best interest rates around. Maybe you should think about loaning from ShoreBank.
“We will use the funding to promote energy efficiency and alternative energy,” said Joel Freehling, manager of “triple bottom line innovation” at ShoreBank.
$35 million to PROMOTE something? Hello! I think everyone would agree with you Tina but if it's not sustainable we can't keep pouring more money into it. They got $35 million stimulus money last year (our tax dollars). Where did the money go? Did they create any jobs? Whose holding them accountable?
Care to tell us what being white, or a separation of church and state has to do with laying witness to blatant government cronyism and a virtual shakedown of the private sector?
We anxiously await your response.
It's really cool. But i really want to know about more thing …
[...] » Sachs + Schakowsky + Shorebank = Shakedown – Big Government [...]
[...] » Sachs + Schakowsky + Shorebank = Shakedown – Big Government [...]
[...] for CD IL-2 by the way–taking their megaphones to protest a crony bailout of the infamous Shorebank, which unfortunately was bailed out for reasons Joel wrote about [...]
This is complete garbage fabricated by desperate conservatives who want the November Senate seat in Illinois.
http://mediamatters.org/research/201007120005
[...] it is now, like ACORN and many other disgraced progressive entities, operating under a new name. Her opponent posted about the matter at Big Government. Regardless of their views of the Glass-Steagall Act, the executives at Goldman Sachs got a [...]
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holy crap! This Patent scam is got to be a huge story. Dig fellas, dig, find that dirt. There has to be a good man in the patent office that can out this crap.
moneytao
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