Biggert: Did Obama Use Clout to Bail Out Bank?

May 20, 2010

(AP/Charles Dharapak)

An Illinois lawmaker is asking whether President Barack Obama used his political connections to help save ShoreBank in Chicago.

In a letter to the White House, Republican Representative Judy Biggert of Hinsdale says she wants documents related to at least $125 million raised from Wall Street banks and others.

She says that money will keep the community lender from collapse and help it qualify for millions of federal dollars.

BIGGERT: The taxpayer has a right to know whether this particular bank is being saved on its merits or on its political connections, and I hope we find that it's on its merits because it's a bank like all the others that is a bank that we hate to see go.
 
Major banks like Goldman Sachs, J.P. Morgan Chase and Bank of America reportedly have kicked in millions to help keep ShoreBank afloat.

Biggert wants to know if the White House exerted any political influence in raising that capital.

She says, so far, the White House has sent a statement saying it has not spoken with ShoreBank.