CHICAGO, IL (May 15, 2010, 2010) – Rep.  Jan Schakowsky (D-IL) today called on federal regulators, not-for-profits investors and Wall Street banks to leave no stone unturned to assure the survival of ShoreBank – the community development bank that invests heavily in Chicago’s low-income communities. Congresswoman Schakowsky released the following statement:

“For all but one of the last thirty-four years, ShoreBank, Chicago’s groundbreaking Community Development Financial Institution (CDFI), has turned a profit.  It demonstrated beyond question that banks can be profitable at the same time they invest in low-income neighborhoods. ShoreBank did not get into financial trouble until the recklessness of Wall Street caused the collapse of our economy and the housing market.

“The big Wall Street banks that caused this economic crisis received hundreds of billions of dollars in taxpayer bailouts.  It would be a tragedy for Chicago neighborhoods if some of the chief beneficiaries with the greatest capacity to help end up riding off into the sunset while an institution that provides credit to underserved communities is allowed to collapse.

“If ShoreBank is allowed to fail, no one else is going to step up to provide critically needed credit to many of Chicago’s neediest communities.  That would be a devastating blow for those neighborhoods, their homeowners and businesses – and to the Chicago area’s economic recovery.

“Time is running out. This is not just about a business deal.  The big Wall Street banks have a moral and economic obligation to step up and make certain that ShoreBank can continue serving Chicago’s low-income communities for years to come.  Some of those banks have agreed to take this obligation seriously.  Others have not.

“Federal Regulators, not-for-profit investors in ShoreBank, and the big Wall Street banks have to redouble their efforts to leave no stone unturned in assuring the survival of ShoreBank and the success of its mission of investing profitably in low-income communities.”