Friday, May 14, 2010

Goldman Sachs, others race to save ShoreBank

Chicago Breaking Business:
ShoreBank, the ailing South Side bank, continues to try to raise more than $120 million in capital on its own from new and existing investors, sources familiar with the situation said.

Regulators recently began looking for a healthy buyer for the undercapitalized Chicago-based lender, but it's racing against the clock to try to raise money to remain independent.

Goldman Sachs, U.S. Bank, Citibank and State Farm are among the new investors that have made tentative commitments.

Citi and Goldman in particular have expressed a willingness to make significant commitments, kicking in at least $10 million apiece. Goldman Sachs, which has come under national criticism for its business practices leading up to the financial meltdown, might be willing to step up with at least $20 million, a source familiar with the talks said.

Existing investors such as Chase and Bank of America, as well as charitable foundations, also are weighing additional investments.
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