Commerce loans part of Phila. probe

Investigators are looking into a $30 million line of credit and several home loans to city officials, all issued by the bank.

By Cynthia Burton, Emilie Lounsberry and Rose Ciotta

Inquirer Staff Writers


Federal investigators are examining a $30 million line of credit the city received from Commerce Bank last year for Mayor Street's ambitious plan to revitalize neighborhoods, and are scrutinizing how the bank was chosen to provide the loan.

Authorities also have been asking questions about several Commerce mortgages given to Philadelphia officials, including Street and then-City Treasurer Corey Kemp.

Nothing bars the mayor or any other city official from getting a mortgage from a bank that does business with the city.

The line of credit has emerged as a focus of the wide-ranging FBI and IRS investigation of alleged corruption in city government.

more: http://www.philly.com/mld/inquirer/news/local/8707624.htm