Goldman Sachs (GS) CEO Lloyd Blankfein is playing a direct role in helping to arrange a $125 million rescue for a South Side Chicago community lender, which provides loans to lower-income communities.
People familiar with the matter tell Financial Times that Mr. Blankfein has been making phone calls personally to gather support for a deal for the Chicago-based ShoreBank that would see some of the country’s biggest financial firms help the lender avoid bankruptcy.
The FDIC began seeking potential bidders late last week for ShoreBank, in case the ailing bank is unable to raise capital on its own.
According to FT, under the terms being discussed, Goldman would inject about $25 million into the bank and Citigroup (C) about $20 million. Other potential investors include Bank of America (BAC), Morgan Stanley (MS), JPMorgan (JPM), US Bancorp (USB) and State Farm as well as some non-profit organization that are already investors in the bank.