Friday, May 14, 2010


Goldman [Sachs] Drives to Save Chicago Bank.

"Goldman initially declined to invest in ShoreBank" a politically-connected Chicago-based bank (Chicago is the home of President Barack Obama) "whose efforts to expand lending in poor communities have high-profile supporters in Washington [D.C.] and Chicago". Wrote the Wall Street Journal in "Goldman Drives to Save Chicago Bank" Friday, May 14, 2010, page C1.  After such declination, the Goldman Chief Executive Officer, politically-battered Lloyd Blankein, whose bank has been indicted by President Obama's Securities and Exchange Commission (SEC)*, has somehow changed his mind and, seeing the wisdom of saving ShoreBank, "discussed...[with] Federal Deposit Insurance Corp." Chairman, Obama-appointee, Shiela Bair, about Goldman Sachs investing in ShoreBank. 

One of the most important so-called regulators of the U. S. banking industry discussed an investment with indicted and Congressionally-hated investment bank to save a politically-correct, Washington, D.C.-favored failing ban?.  Further "investors" included a gaggle of Wall Street names such as Bank of America, Citigroup Inc. and J. P. Morgan (the latter two under investigation by Obama's federal prosecutors -- Manhattan U. S. Attorney's office and the SEC.)

"I'm told that Mr. Blankfein...has used his good (sic) offices to try and further this deal" said Bill Brandt, chairman of the Illinois Finance Authority, who later described Goldman as a "marvelous organization".  Brandt being childhood friends of ShoreBank's CEO George Surgeon.

President -- then Senator -- Barack Obama heaped praise on ShoreBank during a "fact-finding" trip to Nairobi.

ShoreBank was an early supporter of the 1977 Community Reinvestment Act which mandated that banks wanting to expand needed to loan money to people who could not afford to pay it back.  Some have blamed the Act and subsequent Democrat Congressional moves to force Fannie Mae and Freddie Mac into sup-prime and similar Alt-A lending with directly leading to the "sub-prime meltdown" and this present deep Recession.

Not that this is relevant, but Goldman and its employees donated $1,000,000 to President Obama's election; ShoreBank could only afford to cough up $12,500.

But now Goldman is investing a reported $20,000,000 and leading the investment group to save ShoreBank and perhaps purchase some slack from the Democratic Congress and President Obama.

The future of an America led by Barack Obama is his idea of a managed economic society.  It's who you know, it's who you buy, that will win the "competition" (but a better, more clear term might be "corruption".)

*[According to World Socialist Web Site, "The Goldman Sachs indictment. 19 April 2010.The Securities and Exchange Commission (SEC) filed a civil case Friday against giant investment bank Goldman Sachs charging 'fraudulent misconduct' in relation to $1 billion of worthless sub-prime mortgage securities Goldman palmed off to its clients in 2007.  The SEC’s submission to New York’s Southern District Court provides a devastating glimpse into the criminal activities of a financial oligarchy that was not only indifferent to the destructive social consequences of its operations, but eager to profit from a crisis precipitated by its own speculative activities...]

Interesting, on Monday, May 14, chief cheerleader for ShoreBank, Illinois Democrat Representative Jan Schakowsky said the the bank has "demonstrated beyond question that banks can be profitable at the same time they invest in low-income neighborhoods".  Certainly that's why, Ms. Rep. Schakowsky, that's why the Democrat power brokers need to extort $125,000,000 from the politically-unpopular banks and another $75,000,000 from taxpayers and China through the U. S. Government's Troubled Asset Relief Program to bail out "profitable" ShoreBank.  Typical of Democrats, Rep. Schakowsky is stupid.

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