WTF Is Up With This ShoreBank Sh*t?

If you, like JDA, are on any conservative mailing lists - official or otherwise - you have likely already seen the ShoreBank meme that's making the rounds implicating all manner of Obama goons in a scheme to rip off the taxpayer. In case you haven't, I hereby present it in its entirety while disclaiming that presentation of said meme does not constitute an endorsement on my part of information contained hereof. I have not investigated the "facts" presented nor so can neither confirm or deny any or all of its statements. Fair warning, it's completely TLDR. If you don't care, skip past this blockquote and we'll get to the summary shortly.

A small bank in Chicago called SHOREBANK almost went bankrupt during the recession. The bank made a profit on its foreign micro-loans (see below) but had lost money in sub-prime mortgages in the US. It was facing likely closure by federal regulators. However, because the bank’s executives were well connected with members of the Obama Administration, a private rescue bailout was arranged. The bank’s employees had donated money to Obama’s Senate campaign. In other words, ShoreBank was too politically connected to be allowed to go under.

ShoreBank survived and invested in many “green” businesses such as solar panel manufacturing. In fact, the bank was mentioned in one of Obama’s speeches during his election campaign because it subjected new business borrowers to eco-litmus tests.

Prior to becoming President, Obama sat on the board of the JOYCE FOUNDATION, a liberal charity. This foundation was originally established by Joyce Kean’s family which had accumulated millions of dollars in the lumber industry. It mostly gave funds to hospitals but after her death in 1972, the foundation was taken over by radical environmentalists and social justice extremists.

This JOYCE FOUNDATION, which is rumored to have assets of 8 billion dollars, has now set up and funded, with a few partners, something called the CHICAGO CLIMATE EXCHANGE, known as CXX. It will be the exchange (like the Chicago Grain Futures Market for agriculture) where Environmental Carbon Credits are traded.

Under Obama’s new bill, businesses in the future will be assessed a tax on how much CO2 they produce (their Carbon Footprint) or in other words how much they add to global warming. If a company produces less CO2 than their allotted measured limit, they earn a Carbon Credit. This Carbon Credit can be traded on the CXX exchange. Another company, which has gone over their CO2 limit, can buy the Credit and “reduce” their footprint and tax liability. It will be like trading shares on Wall Street.

It was the same JOYCE FOUNDATION, along with some other private partners and Wall Street firms that funded the bailout of ShoreBank. The foundation is now one of the major shareholders. The bank has now been designated to be the “banking arm” of the CHICAGO CLIMATE EXCHANGE (CXX). In addition, Goldman Sachs has been contracted to run the investment trading floor of the exchange.

One ShoreBank co-founder, named Jan Piercy, was a Wellesley College roommate of Hillary Clinton. Hillary and Bill Clinton have long supported the bank and are small investors.

Another co-founder of Shorebank, named Mary Houghton, was a friend of Obama’s late mother. Obama’s mother worked on foreign MICRO-LOANS for the Ford Foundation. She worked for the foundation with a guy called Geithner. Yes, you guessed it. This man was the father of Tim Geithner, our present Treasury Secretary, who failed to pay all his taxes for two years.

The former ShoreBank Vice Chairman was a man called Bob Nash. He was the deputy campaign manager of Hillary Clinton’s presidential bid. He also sat on the board of the Chicago Law School with Obama and Bill Ayers, the former terrorist. Nash was also a member of Obama’s White House transition team.

(To jog your memories, Bill Ayers is a Professor at the University of Illinois at Chicago. He founded the Weather Underground, a radical revolutionary group that bombed buildings in the 60s and 70s. He had no remorse for those who were killed, escaped jail on a technicality, and is still an admitted Marxist).

When Obama sat on the board of the JOYCE FOUNDATION, he “funneled” thousands of charity dollars to a guy named John Ayers, who runs a dubious education fund. Yes, you guessed it. The brother of Bill Ayers, the terrorist.

Howard Stanback is a board member of Shorebank. He is a former board chairman of the Woods Foundation. Obama and Bill Ayers, the terrorist, also sat on the board of the Woods Foundation. Stanback was formerly employed by New Kenwood Inc. a real estate development company co-owned by Tony Rezko.

(You will remember that Tony Rezko was the guy who gave Obama an amazing sweet deal on his new house. Years prior to this, the law firm of Davis, Miner, Barnhill & Galland had represented Rezko’s company and helped him get more than 43 million dollars in government funding. Guess who worked as a lawyer at the firm at the time. Yes, Barack Obama).

Adele Simmons, the Director of ShoreBank, is a close friend of Valerie Jarrett, a White House senior advisor to Obama. Simmons and Jarrett also sit on the board of a dubious Chicago Civic Organization.

Van Jones sits on the board of ShoreBank and is one the marketing directors for “green” projects. He also holds a senior advisor position for black studies at Princeton University. You will remember that Mr. Van Jones was appointed by Obama in 2009 to be a Special Advisor for
Green Jobs at the White House. He was forced to resign over past political activities, including the fact that he is a Marxist.

Al Gore was one of the smaller partners to originally help fund the CHICAGO CLIMATE EXCHANGE. He also founded a company called Generation Investment Management (GIM) and registered it in London, England. GIM has close links to the UK-based Climate Exchange PLC, a holding company listed on the London Stock Exchange. This company trades Carbon Credits in Europe (just like CXX will do here) and its floor is run by Goldman Sachs.

Along with Gore, the other co-founder of GIM is Hank Paulson, the former US Treasury Secretary and former CEO of Goldman Sachs. His wife, Wendy, graduated from and is presently a Trustee of Wellesley College. Yes, the same college that Hillary Clinton and Jan Piercy, a co-founder of Shorebank attended. (They are all friends).

Interesting? And now the closing…

Because many studies have been exposed as scientific nonsense, people are slowly realizing that man-made global warming is nothing more than a money-generating hoax. As a result, Obama is working feverishly to win the race. He aims to push a Cap-and-Trade Carbon Tax Bill through
Congress and into law.

Obama knows he must get this passed before he loses his majority in Congress in the November elections. Apart from Climate Change he will “sell” this bill to the public as generating tax revenue to reduce our debt. But, it will also make it impossible for US companies to compete in world markets and drastically increase unemployment. In addition, energy prices (home utility rates) will sky rocket.

But, here’s the KICKER (THE MONEY TRAIL).

If the bill passes, it is estimated that over 10 TRILLION dollars each year will be traded on the CXX exchange. At a commission rate of only 4 percent, the exchange would earn close to 400 billion dollars to split between its owners, all Obama cronies. At a 2 percent rate, Goldman
Sachs would also rake in 200 billion dollars each year.

But don’t forget SHOREBANK. With 10 trillion dollars flowing though its accounts, the bank will earn close to 40 billion dollars in interest each year for its owners (more Obama cronies), without even breaking a sweat.

It is estimated Al Gore alone will probably rake in 15 billion dollars just in the first year. Of course, Obama’s “commissions” will be held in trust for him at the Joyce Foundation. They are estimated to be over 8 billion dollars by the time he leaves office in 2013, if the bill passes this year. Of course, these commissions will continue to be paid for the rest of his life.

Some financial experts think this will be the largest “scam” or ”legal heist” in world history. Obama’s cronies make the Mafia look like rank amateurs. They will make Bernie Madoff’s fraud look like penny ante stuff.

VERY interesting, huh?

Now, we do have a few facts here including the insinuation that the entire idea of carbon credits is basically a way to generate profits off of yet another fantasy paper market. Unlike current paper markets, however, carbon credits are not really based on a viable commodity (gold, bacon) but based on this made-up idea about pollution being a commodity that can be traded and, subsequently, securitized. I mean that's the point of a carbon trade, right? To be able to package and partition it off just like any other "asset"?

The interesting part about the story of ShoreBank is its seizure August 20th by the FDIC. Using the FDIC's completely legal bad asset laundering system, ShoreBank executives were allowed to dump the bank's garbage at the FDIC's door and start fresh. The newly-formed Urban Partnership Bank - a co-op of the same former ShoreBankers that hammered in the final nail into the bank's coffin - entered into a loss-share agreement with the FDIC on $1.41 billion of the bank's assets and will pay a .50 percent premium for the good stuff. Urban Partnership Bank will not, however, be taking ShoreBank's marketable securities or fixed assets so here's to hoping the FDIC can find a greater fool to unload that shit on.

Said WSJ about this "strange" resolution whereby ShoreBank management were sold the failed bank at a discount with the bulk of its crap unloaded on the FDIC:

Mr. Farrow will be president and chief executive of the new institution, said a person familiar with the situation. David Vitale, a ShoreBank board member, will become chairman. Messrs. Farrow and Vitale arrived at ShoreBank after regulators ordered the bank to raise its capital levels significantly.

The decision to sell to management is a rare move by the Federal Deposit Insurance Corp., which generally bars investors who own more than 10% of the failed bank from bidding on its assets. The FDIC also typically wants to know if bidders have "ever been an officer or director of a failed institution" and "participated in a material way in one or more transactions that caused a substantial loss to any such failed institution," according to an FDIC document.

The structure of the deal "is unusual," said Atlanta banking attorney Chip MacDonald. But it "may have resulted in FDIC getting a better price and lower cost resolution" if "the management team was not responsible for the failed bank's problems," he said.

Of course therein lies the issue: operating in the red, the FDIC needs to be conscious of the best decision for its pocketbook, not what leaves the taxpayer with the smaller burden to shoulder when the deal closes. If you believe the FDIC caused reckless behavior before just imagine what sort of monkey business goes down now that the legitimatized criminals know that Sheila's hands are tied?

In May, Goldman Sachs was ready to chip in on the $125 million needed to save ShoreBank, which drew most of its business from providing "equal opportunity loans" to small business owners and would-be homedebtors who couldn't get qualified elsewhere. Well shit, perhaps if they couldn't get loans from anyone but ShoreBank they shouldn't have had loans in the first place! Solvency isn't racist, it's a simple equation of assets > liabilities.

Goldman Chief Executive Lloyd Blankfein has discussed the Wall Street bank making an investment in ShoreBank Corp. with Federal Deposit Insurance Corp. Chairman Sheila Bair, according to people familiar with the situation. He has also telephoned other bank executives as ShoreBank tries to raise $125 million it needs to forestall a possible takeover by the FDIC, people familiar with the discussions say.

What?! The GS rats suddenly grew a heart and wanted to save the bank for the greater good of the underserved in Chicago? Yeah fucking right, if you believe that I also have a bridge to sell you, as well as some CDOs consisting of other bridges I have sold to equally moronic asshats like yourself.

All of this is supposedly being investigated by those geniuses in Congress so my guess is absolutely nothing will happen and life will go on as usual, scam or no scam. We'll see how far this carbon credits crap goes but for now I think it's safe to call the above meme a little over-hyped and definitely doused with paranoid lighter fluid. And coming from yours truly that's saying quite a bit.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Anonymous said...

"In May, Goldman Sachs was ready to chip in $125 million to save ShoreBank, which drew most of its business from providing "equal opportunity loans" to small business owners and would-be homedebtors who couldn't get qualified elsewhere.

I’m aching and itching to make a “equal opportunity loan” (chuckle) ‘cause I’m on a major league whitey guilt trip. I need to make reparations. (snicker, snicker)

Like I said, assets and liabilities aren't racist, they're facts.

But God forbid someone actually say "Fuck you, you don't get a loan because you don't have the assets to cover it if you decide to blow off your end of the bargain, bitch." because that could be construed as racist.

Obama gonna pay my mortgage!

Anonymous said...

I'm not passing this through spell check so don't bust my balls on it if you spot a typo:

What happens in the real world: Lenders become scared shitless about establishing policies that may be based upon fact or their own historical experience if those policies even come close to discriminating against a certain group of people. That could be minorities, women, old people, etc. They become scared shitless over establishing a policy of not lending in a particular area. They become scared shitless over lending to a schmuck who went bankrupt in the past. Even when the reasonable decision to do so could be based on facts (translation - realized loan losses). The regulations don't make any sense in the practical world. Remember the link I sent you about the 95 year old bitch facing foreclosure who had 20 or 30 more years left to pay on a house that she had previously owned free and clear but she had the great idea of "putting her equity to work" for the purpose of remodeling her bathroom or paying off her Mastercard? Back in the old days, if a 95 year old widow came in to make a 20 year loan she would have been asked if she had lost her fucking mind but in today's brave new world, you have to follow a bullshit reg written by pinheads who are far removed from the real world.

from Reg B

(b) Purpose. The purpose of this regulation is to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract); to the fact that all or part of the applicant's income derives from a public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The regulation prohibits creditor practices that discriminate on the basis of any of these factors. The regulation also requires creditors to notify applicants of action taken on their applications; to report credit history in the names of both spouses on an account; to retain records of credit applications; to collect information about the applicant's race and other personal characteristics in applications for certain dwelling-related loans; and to provide applicants with copies of appraisal reports used in connection with credit transactions.

Anonymous said...

"all or part of the applicant's income derives from Public Assistance"

That one always killed me. People on welfare borrowing money.... what could possibly go fucking wrong????? We are just so fucking stupid as a people I'm beginning to think that we are getting what we deserve.

Anonymous said...

"or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act"

I worked for one outfit many, many moons ago that had a straight up policy: Any applicant who had ever been bankrupt can be shown the door. The Head Ape there had a major Jones on for anyone who'd ever been bankrupt and he more or less said GFY to any regulator who questioned him on it. Another outfit had a more subtle approach, don't nuke 'em for going bankrupt but turn it down for the resulting bad credit on the credit report - it got the job done but I liked the more direct and honest approach. Personally, I know you can in fact make a loan to a former BK but you better be damned careful about it - it helps to get a relative cosigned on the note - hopefully a big, no nonsense swinging dick who can whip the borrower's ass at Thanksgiving Dinner should he fail to pay on time. That will make that mother fucker walk the line (to borrow a Johnny Cash lyric).

Anonymous said...

Like I said, assets and liabilities aren't racist, they're facts.

"C's" in lending


and the one that many people in this business today haven't a fucking clue about:


in pussy language:
"Although certainly the least quantifiable, character may well be the most important assessment that the lender can make about the prospective borrower" - blah, blah, blah

in Jeffspeak:
Tiger don't change his stripes.

Anonymous said...

Thank you for your courage in printing this article. It is shocking and what I always suspected to be true about the "players" in our government. I always would think all this mess in the budgets and "lost" money was a big farce when any CPA could easily see the Fed gov's books are cooked. That's why they do not want them online.
Keep it coming.

Anonymous said...

This is the problem with blogs. One idiot reads an article and then repeats the information without doing one ounce of independent research or verification. Having a disclaimer that says "I haven't verified if any of this is true" is more than cowardly, it's downright dangerous.

Do some simple work and check your facts. Oh...I'm sorry, that would require too much effort. Plus, it might not support the point you're trying to make. Yeah, I'll just write TLDR over stuff and remove any responsiblity from using my brain to actually SCREEN the garbage I am now sharing with more people.

Weak. Absolutely weak and pathetic.

The bank did not profit on its foreign micro-loans. The bank is an Illinois chartered bank and does not lend money outside the US.

The article "quoted" is so inaccurate. I guess it was another blog post so I shouldn't expect much better.

Know what the other problem with blogs is, Anon? Cowards like you can show up and leave comments "Anonymously", pick and choose what pieces of an article you want to bitch about and then run away to go rip on the next blogger or writer or whomever. But I do give you credit for being the first coward prick I've had whine at me in a long time who can actually spell so your parents must be proud.

HAD YOU READ THE FUCKING ARTICLE instead of being so incensed by the fact that I don't have time to research 75 different facts in a meme making the rounds (this isn't Snopes, you asshole, I have a life) you would have realized that I presented it because it's making the rounds and wanted to clear up the parts that I could clear up. As I clearly stated. But obviously that's not good enough and I should spend hours researching "facts" that are obviously not factual... mmm hmm, that sounds like an excellent use of my time. You must be unemployed with a shit ton of time on your hands.

And really? All that and the best you can do is say they didn't make foreign micro loans? hahahaha. When did I say they did?!

Don't tell ME that, I already identified what sort of "business" they specialized in in the article that you didn't read. "Equal opportunity loans".

Next time you want to talk shit A) sign your work and B) don't hide your IP like a little bitch. What are YOU hiding? Maybe I should do some research on THAT.

Mark said...

I knew, I just KNEW, by the second paragraph that the goldman rats (I refuse to capitalize that fucking name)would show up.

Whenever there is a whiff of bullshit, a goldman rat tail is waving.

Anonymous said...

Sorry JDA, I didn't realize your whole entire blog was quoting someone else's poorly written drivel. My bad. You get credit for simply passing on crap with a huge disclaimer that you didn't read it.

Yes, my parents are quite proud. And yes, I'm a coward because in the age of the internet I don't feel like signing my name to something so silly as a posting to a blog. So you have a fake name and post a picture that doesn't show your face. Good for you.

Anonymous said...
Anonymous said...

Give us your poor, your unclean, your huddled masses and ..... we'll figure out a way to make 'em a loan backed by Uncle Sam.... What bullshit. And, where did this fabulous business plan wind up? DY-NO-MITE!!!!!

Jimmie JJ Walker

Anonymous said...

So, JDA - wanna go short on silver and do something really big - let's all join hands, sing Kumbaya and take advantage of the vast investment opportunities that exist in America's inner city communities??..... you go first and I'll be right behind you.

Before you answer, be sure to think about the masturbating bum on the Muni or the derelict taking a shit in public....

Anonymous said...
Anonymous said...

"Although Urban plans to continue serving inner-city neighborhoods, the executives said the business model has to change"

naaaaaahhhhh - go with the old Shore Bank Vince Lombardi Playbook.... what could go wrong???

Anonymous said...

"But Northern Trust Corp., the Chicago-based bank, lent him $1,500, and the son of a teacher mother and a teacher-turned-utility worker father was on his way to a master's degree in management from Northwestern University in 1979."

Well...that is truly fucking touching. I'm getting little tears welling up in my eyes...Did it occur to this genius that his first year of schooling only cost $1,500???? Not $40,000???? Maybe that is one key difference in "then" vs. "now"??????

I hate Baby Boomers (and I'm one of them even though I hate to admit it - only by birthdate and nothing else, though) So fucking obtuse...

Anonymous said...

"A rigid 20% down payment requirement is going to unnecessarily prevent the middle-class, first-time home buyers from getting affordable mortgages," Sen. Kay Hagan (D., N.C.) said in an interview.

Cry me a fucking river.

"The ability to plan in advance for the orderly resolution of a systemic entity is key to ending 'too big to fail,' " Ms. Bair said.

this clusterfuck was long in the making. You were probably listening to NKOTB or BSB when all these damned do-gooders were trying to make housing affordable