A day after financial companies banded together to rescue ShoreBank in Chicago with a $140 million investment, two Republican lawmakers are asking President Obama about his involvement.
In a two-page letter, Rep. Spencer Bachus of Alabama, the ranking Republican on the House Financial Services Committee, and Rep. Judy Biggert of Illinois accused the administration of putting pressure on investors to rescue the $2.3 billion-asset community development bank when so many other banks have failed. They requested all records among the administration, ShoreBank, its advisers and the firms that invested. "There is no way a bank without ShoreBank's political connections would receive this kind of attention," Bachus said in a press release Wednesday. Rep. Darrell Issa, R-Calif., also sent a letter Wednesday to the White House.
A White House representative said administration officials "have not met with ShoreBank regarding support measures for their bank, nor has the White House made [requests] of financial assistance to other financial institutions for ShoreBank."