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| Economy |
| Giannoulias family races to avoid collapse of its bank |
| 2010-02-28 |
| The clock is ticking, and the real estate deals gone south are piling up, at Broadway Bank, the lending institution owned by the family of U.S. Senate candidate Alexi Giannoulias. Many U.S. banks are struggling amid the worst financial crisis since the Depression. Almost monthly, at least one Illinois lender has collapsed, seized by the government because of poor performance, often due to real estate loans turned sour. At once-successful Broadway, headquartered in a former car dealership in the Edgewater neighborhood of Chicago, the situation has turned awful at an inopportune time for the Illinois treasurer. Less than a week before Giannoulias' Democratic primary election victory earlier this month, the scope of the problems at Broadway became clearer after a regulatory order was made public saying the bank has just three months to get its financial house in order. Broadway's struggles have put Giannoulias on the defensive as Republicans eyeing Barack Obama's old Senate seat question what role he played in the bank's problems. Giannoulias, a friend of Obama's who is facing U.S. Rep. Mark Kirk, the GOP nominee, in the November race, has repeatedly said he hasn't worked at the bank in four years. Still, the situation could become more politically harmful and provide more ammunition for the GOP if the family-owned bank is taken over by the federal government before Election Day. Broadway's chief executive, Demetris Giannoulias, Alexi Giannoulias' older brother, told the Tribune the family must raise at least $85 million by the end of April to stave off government seizure. Demetris Giannoulias said he doesn't expect the government to drag its feet on shutting the bank if capital-raising efforts come up short. "Regulators aren't cutting us any slack," said Demetris Giannoulias, 38, whose father founded the bank in 1979. Because you're an embarrassment. Have the young nephew start your car every morning ... |
| Posted by:Fred |
| #2 The 'struggle' was caused by Alexi and his sibs taking $75 million out of the bank when their father died and about a million a pop each year since then. Sure looks like looting, might even be criminal. |
| Posted by: Waldemar Gleamp1150 2010-02-28 11:19 |
| #1 Couldn't have happened to a better Democrat. Violins for ya pal. |
| Posted by: Galactic Coordinator Flating1790 2010-02-28 07:47 |