Payback is sweet. One of Obama's favorite Chicago banks, Shorebank, is on the verge of failure after a bank consortium of Goldman, JPMorgan, BofA and Citi is 25 million "short" of providing the needed rescue funding, according to Fox Business' Charle Gasparino. As Charlie reports, the consortium has secured commitments of only $100 million so far, and it is unclear if they will provide even another penny, despite the administration's explicit demands that the bank be "supported." Of course, to theabovementioned banks $25 million is less than they spend on strip clubs per month, so that this amount could be a gating issue is nothing but a political statement. As Charlie points out: “As of nowShorebank will not get bailed out. The consortium has not agreed to a final number. They are about $25 million short of the $125 million needed. From what I understand, the consortium of Goldman Sachs, JP Morgan,Citigroup , Bank of America do not want to give any more money. The banks tell me there is a degree of political pressure to give money but I think at this point they are tapped out. They just had the meeting an hour ago, they had $100 million raised, they are $25 million short. And what they are telling me is they are not giving any more money.” Now that bailouts are a political decision, you better have your money in a bank that is liked by the Chief Executive: more fromGasparino "But I will tell you this, the banks themselves are telling me that there is a degree of political pressure being applied by the Obama administration to bail this out…so we could get a last minute bailout…This is a very politically connected bank.” After the government has provided the banks with $25 trillion, the banks have a problem with returning the favor with the same number ex-six zeroes.
We have the feeling that if Shorebank does indeed fail, then the Obama-Wall Street war is about to go "scorched earth."