ShoreBank May Face Closure After Failing to Win Federal Funds
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ShoreBank Corp., the unprofitable Chicago lender to low-income communities, may be forced out of business after failing to win $75 million of federal bailout funds, three people with direct knowledge of the matter said.
ShoreBank raised more than $145 million in May from General Electric Co. and banks including JPMorgan Chase & Co. and Goldman Sachs Group Inc. That money was contingent on more federal funding that is now unlikely to be released, the people said, speaking anonymously because the matter is private.