Chicago

  • 14 May 2010 at 2:53 PM
  • Banks

Gasparino: Lloyd And The Dancing Blankfeins Might Not Save Chicago Bank

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Remember that story from a few hours ago about Chicago-based ShoreBank, which was set to be seized today if it didn’t come up with the necessary scratch to survive? And how Goldman Sachs, JP Morgan, Citigroup, Bank of America all stepped in at the last second to raise the money, led by Lloyd Blankfein who was personally working the phones and promising people “an all-access pass to Blankfein-ville” for opening their wallets? And it looked like things were going to be okay and Lucas van Praag had already commissioned the float for the inevitable parade of GS execs Saturday afternoon? Well Charlie Gasparino, because he hates feel-good stories, is here to ruin everything, reporting that the bank may very well go down for the dirt nap (alternatively, it might not, due to the fluidity of the situation). Sayeth Chaz:

“As of now Shorebank will not get bailed out. The consortium has not agreed to a final number. They are about $25 million short of the $125 million needed. From what I understand, the consortium of Goldman Sachs, JP Morgan, Citigroup, Bank of America do not want to give any more money.”

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  • 02 Oct 2009 at 12:03 PM

Caption Contest Friday

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[via NYT]

  • 14 Aug 2009 at 12:37 PM

Did Mesirow Shaft The City Of Chicago?

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ohboyareyouintrouble.jpgPerhaps the details of Mayor Daley’s reputation were not entirely explained to the deal team at Mesirow.

The Metropolitan Water Reclamation District of Greater Chicago, in a debt offering typical of President Barack Obama’s Build America Bonds, raised $600 million this week, relying on advice from Mesirow Financial Inc., a 72-year-old investment bank based in the city. Within 12 hours, the firm assured itself and investors a profit of at least 2 percent as the bonds appreciated as much as $25.82 for each $1,000 face amount, according to the Municipal Securities Rulemaking Board.

Wall Street fleecing financially naive municipalities is a practice as old as sin, but you would think Chicago had the wherewithal to protect itself a bit better from this kind of nonsense. Then again, perhaps we are selling the City short. In this context, one wonders how much overlap there might be between Mesirow and the City elders.
Even Mayor Daley Can’t Get Rates Taxpayers Deserve for Chicago [Bloomberg]