Some of the nation’s largest banks have agreed to contribute enough money to save Chicago-based ShoreBank, an undercapitalized community lender with strong Washington ties.
According to FBN’s senior correspondent Charlie Gasparino, with new commitments from several major banks like Goldman Sachs (GS), which agreed to contribute $20 million to the bailout effort, as well as Citigroup (C) and JPMorgan (JPM), General Electric’s (GE) GE Capital will also contribute $20 million to the rescue effort, ShoreBank Corp. of Chicago is certainly on its way to exceeding its goal of raising $125 million in capital from private sources.
In total the banks, including BofA (BAC), Morgan Stanley (MS) and Wells Fargo (WFC), have agreed to contribute $140 million to bail out the ailing bank which is also hoping to receive as much as $75 million from the U.S. government in assistance in order to recapitalize its operations.
An announcement on the bailout is expected Tuesday morning.
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