Shorebank Emerges As Urban Partnership Bank

CHICAGO (GaeaTimes.com)- The failure of Chicago’s Shorebank has created sensation in the market and media. On Friday the banking entity was seized by the Federal regulators. They handed over its remaining good assets to the management team who decided to reopen it as Urban Partnership Bank. The management team that joined the bank not many days back agreed to a loss-share transaction. The new leaders of the entity are David Vitale and Bill Farrow, both earlier First Chicago Corp. executives. David Vitale said in a statement that Urban Partnership Bank will offer the customers access to monetary services. It will carry forward Shorebank’s legacy to provide economic support to underdeveloped areas. The new entity will apply for becoming a Community Development Financial Institution. It will cater to the needs of minority communities and those belonging to the lower income groups. It will also take part in environmentally friendly development.

ShoreBank started its journey in 1973. The new entity, Urban Partnership Bank will have a new board of management as it has been reported. The 15 branches of the former ShoreBank will start functioning as Urban Partnership Bank branches and it will be applicable for the ones in Cleveland and Detroit. The depositors of ShoreBank will be allowed to use their debit cards and issue checks as usual.

The new managers have the backing of major banks and financial entities. The important investors in Urban Partnership Bank are Bank of America, GE Capital Equity Investments, JP Morgan Chase, Citigroup etc. ShoreBank Corp.’s subsidiaries namely ShoreBank International and ShoreBank Pacific can continue as usual.