Daily Archives: August 25, 2010

No TARP funds for Shorebank

Shorebank in Chicago was closed by regulators last Friday. This bank, which has been prominent for its commitment to the needs of local business and low-income clients, was closed “after Wall Street backers failed to rescue the institution.” Over the past 2 years the federal government has lavished hundreds of billions of dollars on major Wall Street institutions while allowing small, local banks to fail. One must wonder why. According to a Reuters report:

“… the [Shorebank] bank, which was put on the ropes when the recession hit its lower-income borrowers especially hard, was unable to secure the funds it was seeking from the government’s Troubled Asset Relief Program, or TARP, it needed to match private-sector pledges.”

Read the full report here.