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Home Front: Politix
FDIC closes Chicago's Broadway Bank
2010-04-24
Broadway Bank, the family-run lender that helped launch U.S. Senate candidate Alexi Giannoulias' political career, was one of seven Chicago-area institutions seized by the U.S. government Friday and sold to healthier companies.
Done on a Friday afternoon and reported on Saturday. That's the way you bury bad news, and this is bad for Obama and the Dhimmicrats. Giannoulias is way connected in Chicago. The family bank, which is what the Broadway was, loaned money to Tony Rezko and other notorious folks. It was rumored to be mobbed-up. Giannoulias makes money even as the FDIC seizes the family jewels. This will be all over the news in the fall election.
The failure of Broadway, which was unable to raise the $85 million it needed to remain independent, will cost the Federal Deposit Insurance Corp. $394.3 million.

Giannoulias worked for his father at Chicago-based Broadway before entering politics, and the bank's struggles in recent years with real estate loans gone bad have weighed on Giannoulias' Democratic bid for Barack Obama's old Senate seat.

During Giannoulias' successful run for state treasurer in 2006, he used his banking experience as one of his chief qualifications. But in the Senate race, he has tried to distance himself from the bank's troubles.
Which won't work.
If Mr. Giannoulias actually wins, his voters will deserve what they get. The question then is, how many of the votes will have been cast by legitimate voters.
Unfortunately we will all get what they deserve.
"This is a difficult day for bank employees, for my family, for this community and for all those who built businesses and protected their savings with the help of this bank," Chief Executive Demetris Giannoulias said in a statement. "We fought to carry out the vision my father had when he founded Broadway Bank 30 years ago, but our bank -- like many businesses -- has struggled during these challenging times."

The Tribune reported earlier this month that the $1.15 billion-asset bank, founded in 1979, loaned a pair of Chicago crime figures about $20 million during a 14-month period when Giannoulias was a senior loan officer.

Giannoulias' Republican opponent, Mark Kirk, has hammered on the bank issue, prompting Giannoulias to accuse Kirk of negative campaigning. "He has essentially campaigned on one thing and one thing only -- Broadway Bank," Giannoulias said.
It always is negative when your opponent comes after you ...
But even fellow Democrats have taken shots at Giannoulias and Broadway. Asked recently whether the bank's problems would affect Giannoulias' Senate race, Democratic House Speaker Michael Madigan joked: "I'm glad I don't have any deposits there."

Broadway has only four branches, including its 5960 N. Broadway headquarters.
Posted by:Steve White

#9  When Barry finally leaves office (if he ever does) I'll buy a new car or two. Never owned one before, but it will probably be a Toyota...since the government seems to feel they need weekly whippings....... they go right, I go left. They go up, I go down.
Posted by: Besoeker   2010-04-24 14:30  

#8  Besoeker, very good estimating. Since the current spate of bank closings began in 2007, Georgia is the champ with 38 banks. In Georgia's defence, it should be noted that it was historically a unit bank state without branching, so it probably still has lots of little banks with low barriers to entry. California has 26 closures, Florida and Illinois 25, Minnesota 11 and then it drops to single digits.

Someone else can do Escalade sales.
Posted by: Nimble Spemble   2010-04-24 14:03  

#7  I believe the State of Georgia have established the unenviable record for first and second mortgage related, failed banks. We've probably set national sales records for Cadillac Escalades as well.

Could there be possibly be a connection?
Posted by: Besoeker   2010-04-24 12:22  

#6  Hal, thanks for the correction. Duly noted.
Posted by: Steve White   2010-04-24 12:12  

#5  http://www.fdic.gov/bank/individual/failed/banklist.html

This is a useful list of the failed banks, which is updated about every Friday. I've bookmarked it, and actually refer to it more often than you'd think.
Posted by: Anonymoose   2010-04-24 12:03  

#4  We've had a few "all Illinois" days. The FDIC seems to rotate its shutdown crews around the country and it makes sense to concentrate resources. There have been a few "all Georgia" and "all Nevada" weekends. I doubt there's politics involved there, or even in the other Illinois banks, but the POTUS will be thoroughly tied into this and the soon to start Blago trial.
Posted by: Halliburton - Mysterious Conspiracy Division   2010-04-24 09:08  

#3  However, this Fridaw was an all Illinois shut down with 7 Illini institutions biting the dust. Be interesting to know what went on at the other 6 that will be covered by the Giannoulias/Broadway announcement.
Posted by: Nimble Spemble   2010-04-24 08:38  

#2  More interestingly the bank was closed immeditely AFTER the Obama administration announced that the stink was on Giannoulias and the president would NOT be going to Illinois to support the campaign of his hoops shooting pal.

Broadway Bank in Chicago, whose wealth helped finance GiannouliasÂ’s successful 2006 bid for state treasurer, has been operating since January under a consent agreement with the Federal Deposit Insurance Corp. because of commercial real- estate loan losses. Bad loans included money to such figures as convicted prostitution ring operator Michael "Jaws" Giorango. Loans were also made to convicted influence peddler Antoin "Tony" Rezko, who also was a fund-raiser for Obama.

More Tony, sing more! Tell us about Barry's first sweatheart town home loan from Broadway Bank.

Posted by: Besoeker   2010-04-24 08:13  

#1  Very minor point Steve - the FDIC always seizes and closes banks on Fridays. It gives them the weekend to clean up and prepare the new owner to reopen the following Monday.

Unlike so much of what the government does, these are actually very precise and well run operations, with extreme confidentaility, extensive preparation and coordination, and severe professionalism.

It prevents last minute looting by staff/owners, and smoothes the transition for innocent customers.

All that said, Lexi and crew knew this was coming years ago, and successfully paid themselves huge "dividends", which is essentially the case Kirk will make. It will be interesting to see if US Atty Fitzgerald gets in the act with fraud charges - since the family basically gutted the place "during these challenging times" rather than fold up honorably.
Posted by: Halliburton - Mysterious Conspiracy Division   2010-04-24 05:57  

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