FBN’s Charlie Gasparino just broke the news that Spencer Bachus, the ranking Republican on the House Financial Services Committee, will investigate the Shorebank bailout.
According to Gasparino, Bachus has asked President Obama to release “all records of communication – including emails, phone logs and meeting records- related to the ShoreBank negotiations that exist between the Administration and representatives of ShoreBank, and executives of the banks involved in the bailout.”
In a letter to President Obama, Bachus writes: “In a year in which hundreds of banks are expected to fail, it is good news that this troubled institution has managed to survive. The question that many are asking, however, is why did government-supported Wall Street banks decide to save ShoreBank rather than the numerous others that faced a capital shortage?”
Some of the nation’s largest banks including Goldman Sachs (GS), Citigroup (C), JP Morgan (JPM) and Bank of America (BAC), have agreed to pitch in about $140 million, which when combined with $75 million in federal aid, would prevent the FDIC from taking over the undercapitalized community lender known for its strong ties to Washington.
Full Gasparino Clip:
