Chicago Sun-Times
A dialog between Sun-Times opinion writers and our readers

Should more be done to save community banks?

| 3 Comments | No TrackBacks

The FDIC is on a pace to close more banks this year than the 140 it closed nationwide last year. The most recent banks to close in Illinois are the Arcola Homestead Savings Bank on June 4 and Elmwood Park's Midwest Trust & Savings Bank on May 14.

Last year, 21 banks closed in Illinois. So far this year, 12 have closed in Illinois.

Chicago's ShoreBank was close to being on that list and still is on tenterhooks even after applying for funds from the recently terminated Troubled Asset Relief Program.

Last month, local Tea Party leader Steve Stevlic led a protest against any bailout for ShoreBank. "The reason that ShoreBank is being bailed out with taxpayer money is because of their political connections," Stevlic said.

But others have voiced concerns about a years-long trend of large banks gobbling up community banks. And ShoreBank supporters point out that the bank has a long history of benefitting the community -- which is both the strength of community banks and one reason it is able to attract capital now.

Follow BackTalk on Twitter@stbacktalk

No TrackBacks

TrackBack URL: http://blogs.suntimes.com/cgi-bin/mt-tb.cgi/33703

3 Comments

Baring outright fraud we need to do all we can to save or sustain our community banking network. While in need of repair and a change in how they do business our community banks are the only logical link to local businesses and professionals that need capital, merchant services and a guiding hand into the world wide commerce market. bankalchemist.

ShoreBank is not a well run community bank that fell on hard times. Shorebank is a poorly run community bank that made loans based on political connections and is trying to cash in on those political connections at the expense of the taxpayers.

ShoreBank extended a $10 million line of credit to Trinity Unity Church, which purchased a million dollar mansion for Rev. Jeremiah Wright. How is that helping an underserved community?

Every dollar spent to save mismanaged ShoreBank is a dollar not spent on investing in the commmunity and creating real jobs. The community ShoreBank claims to serve needs more jobs, not more bailouts.

Absolutely no taxpayer bailouts for banks!

Regarding Southshore, how much are they really in debt and will we be throwing a bread crumb to a hungry hog?

Is Southshore willing to 100% open their books to the public, the same public they want bailout money from? The answer is that they will not open their books to the public.

If they fail, then let the market allow another group of investors to take over the bank, who will manage it profitably. It is the risk that individual investors assume by not doing their homework and investing in banks like these, and it is the media's job to expose funny business going on at the bank.

Leave a comment

About this Entry

This page contains a single entry by Thomas Frisbie published on July 7, 2010 4:50 PM.

Lawsuit sets stage for U.S.-Arizona battle over immigration was the previous entry in this blog.

How can a Happy Meal make us so unhappy? is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.