So far in 2010, 86 banks have failed, including a dozen in Illinois. Yet only one bank, Chicago's ShoreBank, which has ties to the Obama administration, has been bailed out. The Hill is reporting this morning that four Illinois Democratic congressmen, including chief ShoreBank apologist Jan Schakowsky, are calling for the federal Troubled Asset Relief Program to dump more cash into ShoreBank. Would make it a second bailout?
Schakowsky doesn't care:
"It's so frustrating that billions of dollars are given to the big banks. Everybody is crying for credit, particularly in these needy communities. The big banks certainly aren't coming to the rescue here," Schakowsky said Thursday. "Here is a bank that has a long history, 37 years of serving these communities, and now there is some games being played that could end in the demise of this bank."ShoreBank wasn't just "serving communities," it was dropping cash into green business sinkholes, which impressed former White House green jobs czar Van Jones so much that he became a customer.
The first rule of capitalism is that businesses fail. ShoreBank had its chance, why are we depositing good money after bad money? Like an irresponsible relative who keeps returning to a rich uncle for "a little cash to tide me over," my guess is that ShoreBank will be back for a third bailout...and a fourth.
Schakowksy has no business sense. I'm sure that it hasn't occurred to her that the reason big banks haven't "rescued" ShoreBank is that they won't see returns on their investment.
Today is Friday, the day the Federal Deposit Insurance Corporation typically shuts down failed banks. Taxpayers will pay for the significant costs of the closures, but they won't be bailed out.
ShoreBank is different. Which has caught the attention of two Republican members of Congress, Judy Biggert of Illinois and Spencer Bachus of Alabama. They are calling for an investigation of the bailout efforts.
Related posts:
Anti-ShoreBank Tea Party
The ShoreBank cover-up
Why is Rep. Schakowsky so desperate to bail out ShoreBank?
Glenn Beck gives ShoreBank the blackboard treatment
ShoreBank bailout prompts call for Congressional probe
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