In an unusual move, the FDIC allowed some of ShoreBank's executives to continue managing the restructured bank, now known as " Urban Partnership Bank. " The recently hired ShoreBank managers "did not contribute to the bank's problems," the FDIC said.
ShoreBank lost $39.5 million in the second quarter as its real estate loans soured. The bank had been under a so-called "cease and desist" order from the FDIC for more than a year, requiring it to boost its capital reserves.
The Bank was able to raise more than $146 million from several big Wall Street institutions.......... members of the newly chartered Urban Partnership Bank include Goldman Sachs Group Inc., Citigroup Inc, Morgan Stanley and Wells Fargo & Co.
The MacArthur Foundation also owns a share, the FDIC said.
The FDIC and Urban Partnership Bank also agreed to share losses on $1.41 billion of ShoreBank's loans and other assets.
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They say $75 million in anticipated funding never materialized from the fed's bailout funds for failing banks............betcha G/S got tax dollars to do the deal.....thanks to G/S insider, Rahm Emanuel.
I just hope there's no illegal conversions of federal funds going on here (/snix).
Isn’t this the bank that Beck said was a part of “crime Inc”? It has close ties to all the obama gang