“No Man’s life liberty or property is safe while the legislature is in session”.

- attributed to NY State Judge Gideon Tucker



Thursday, May 20, 2010

The Curious Case Of ShoreBank of Chicago

Since stories about large New York financial institutions chipping in to help avoid the closure of a modest bank in Chicago named Shore Bank, I've been wondering what would lead so many titans of finance to help some insignificant little Midwest bank.

This morning's Wall Street Journal provided the likely answer- corruption.

Framing a grinning mugshot-drawing of our First Rookie, the article stated,

"In letters to the White House, the lawmakers questioned whether the big banks are curring favor with the Obama administration at a time when many are under federal scrutiny. The lawmakers also asked whether the White House has been pressuring the big banks to help.

The White House denied putting pressure on bankers."

According to the piece, no less an august person than Lloyd Blankfein

"was personally making fund-raising calls to other banking executives, seeking private-sector pledges totaling $125 million for the failing community-development lender, Chicago's ShoreBank Corp."

Further on in the Journal article, various other denials are noted on the part of administration mouth pieces. They allege that all contact occurred between Treasury, regulators and the bank, not the White House.

Well, sure. I mean, does anyone really think Wonderboy is personally calling Lloyd Blankfein to suggest he help rescue ShoreBank? Or even one of his henchmen?

Everyone's smarter than that. All that need have occurred is for Rahm Emanuel to mention to Geithner that it sure would be a good thing if ShoreBank could be kept open.

I believe in espionage circles, this is what is known as 'using a cutout.'

There's never a direct, traceable link between the highest corrupt official and the people doing the actual questionable actions.

So it is here.

Because if you think Lloyd Blankfein just got out of bed one morning and decided his good deed for the day was to save a small community bank in Chicago, well, Lloyd probably has a few CDO's to sell you, too....

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