Chicago-based ShoreBank, known for making credit available in underserved communities, has been hit with a cease and desist order from the Federal Deposit Insurance Corporation, the federal agency charged with insuring deposits and regulating the liquidity of member banks. The order, which requires ShoreBank to to buttress its capital holdings and improve its asset quality and earnings and develop a plan to improve its liquidity, hasn't yet been made public. Nevertheless, it appears that ShoreBank is suffering from the same stagnant economic climate that has hobbled the rest of the banking industry. "We all got hit with a more severe recession than anyone - either here or in Washington or on Wall Street recognized," ShoreBank Chairman and co-founder Ronald Grzywinski told Crain's. While the bank asserts that it is "well-capitalized" by industry standards, it does have a plan in place to raise $30 million in capital. The bank already has a $4 million commitment. more ›