General Electric (NYSE: GE) said Tuesday that it will invest roughly $20 million in ShoreBank, joining several other big banks, such as Bank of America (NYSE: BAC) and JP Morgan (NYSE: JPM) in an attempt to save the bank from a government takeover.
ShoreBank Corp. of Chicago, a troubled community lender with strong Washington ties, has received commitments from several banks in its efforts to raise private capital in order to stay solvent. GE is the latest to pledge money, bringing the total amount raised to at least $135 million.
ShoreBank aimed to raise a minimum of $125 million in order to recapitalize its operations, while still seeking about $75 million in government assistance.
Located in Chicago, ShoreBank serves low and moderate income communities in the area, helping to build those areas. However, surging unemployment, especially in low income areas has weighed on the bank and its loan portfolio.
According to reports earlier in the week, Bank of America and JP Morgan have both committed $15 million to the bank, while Citigroup (NYSE: C) has pledged $20 million.
