Congressional Republicans Calling For Investigation Into ShoreBank Bailout

Tyler Durden's picture

Yesterday we pointed out how insolvent South Chicago bank ShoreBank was rescued in the last minute by a consortium of banks led by Goldman Sachs, after early unwillingness to provide rescue funding to the bank was overcome once the President allegedly got involved. Today we learn from Fox Biz' Charlie Gasparino that congressional republicans, led by Spencer Bachus, are calling for an investigation into what could turn out to be another crooked scam to bail out an administration darling, because GM and Chrysler were not enough, even as over 70 banks have failed year to date, which however do not have the privilege of being in the president's very good graces.

Some excerpts from Gasparino:

On Bachus calling for an investigation into the Shorebank bailout:
“The congressional republicans are now going to call for an investigation into the bailout of Shorebank. As you know all these private sector banks came in at the last minute and threw in about $150 million. GE Capital, not exactly a bank, gave $20 million as well. Mr. Bachus thinks it’s suspicious so he is calling for an investigation.”

On why Bachus is targeting Shorebank:
“These are all banks that received substantial federal money. And he’s looking for why they are doing it [bailing out Shorebank].”

On when the investigation will happen:

“He’s [Bachus] writing the letter to the President today.”

On the White House’s stance:
“They’ve denied any political pressure.”

On the political pressure to bailout Shorebank:
“They [the banks] did tell me that they wouldn’t have given money to the banks unless there was some sort of political overtone. There was no reason to bail this out other than its connections.”