Politically connected community lender ShoreBank, despite its ties to the Obama White House, reportedly won’t be able to survive a government takeover and the eventual liquidation that the bailout was designed to prevent.
An analysis by the Federal Reserve Board, one of ShoreBank’s regulators, has concluded that the bank needs much more than the approximately $140 million it has raised, Fox Business Network's Charlie Gasparino reported.
People with knowledge of the analysis told Fox that the Fed believes in order to remain solvent, ShoreBank would need much more money — at least $300 million and probably more because of the toxic nature of ShoreBank’s balance sheet.
ShoreBank has close connection to officials in the Obama administration.
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