* Democratic US Senate candidate Alexi Giannoulias unveiled his financial services reform plan today and, as expected, was peppered with reporters’ questions about his own family’s bank…
But he immediately was hit with questions about Broadway Bank, which faces huge defaults on loans for high-profile real estate deals, many of them out of state, even though Broadway is considered a neighborhood institution.
“You saw greed everywhere,” Mr. Giannoulias said in response to a question about Broadway. A moment later, he conceded that he personally approved loans for projects in Florida, New York and other states. But “hundreds” of community banks are dealing with similar woes that have driven many of them to insolvency, he added.
“I don’t think anyone even as smart as you could have foreseen” the near-total collapse of the economy and real estate market, Mr. Giannoulias said.
Mr. Giannoulias did not directly talk about what will happen to Broadway. But he said his brothers who run it are “concerned about the future. . . .I hope they can make it through.”
That forecast doesn’t sound good. I’m a bit surprised that the banking stuff didn’t find its way into the AP story. Then again, the AP didn’t even bother to cover the banking reform stuff, focusing instead on Blagojevich. Progress Illinois has a summation of Giannoulias’ plan…
…the application of commercial banking regulations to non-bank lending institutions (think mortgage brokers and payday lenders) and the creation of a Consumer Financial Protection Agency, a public exchange on which derivative transactions would be conducted, and an emergency bailout fund bankrolled by firms deemed “too big too fail.”
David Hoffman’s campaign responds…
Mr. Giannoulias continues to tout his experience as a banker, but based on his record he has no credibility. As Vice President and Chief Loan Officer of Broadway Bank, he was directly involved in several questionable loans. Further, he and other owners of the Broadway Bank received $70 million in dividends, just as the financial collapse was taking place, which has left the bank on the edge of insolvency.
Rather than offering warmed over proposals, he should come clean and let voters know whether he intends to put his portion of the $70 million back in the bank to avoid it being taken over by the FDIC.
That’s not as hard of a hit as I expected.
*** UPDATE *** From a press release…
Statement from Tom Bowen, campaign manager for U.S. Senate candidate Alexi Giannoulias:
“The only candidate who is funding his campaign with bank money is David Hoffman. His holdings in JPMorgan Chase and Citigroup were protected by the very TARP money and system Hoffman rails against. Now Hoffman has put $500,000 of that money into his campaign. Bailout dollars saved Hoffman’s investments and now he’s using that money to fund his campaign.”
[ *** End of Update *** ]
* Like Congressman Mark Kirk before him, Republican gubernatorial candidate Andy McKenna is also backing away from his earlier over the top remarks on the proposed sale of Thomson prison…
He said when it comes to turning northwestern Illinois’ Thomson Correctional Center into a federal prison he is not certain that either Quinn or President Obama have “explained the betterment of this move.”
“I see it as it being appropriate for it to be used as a federal prison but so much is being made of what prisoners be going to it that nobody is focusing on the jobs that would be created and how many,” McKenna said.
When the story first broke, McKenna sent out this statement…
“As governor, I would not support this extreme plan and I call on the General Assembly to act swiftly and decisively to put a halt to Governor Quinn’s attempts to put terrorists in our neighborhoods.”
Quite the sea change in attitude.
McKenna also stressed his outsiderdom in a recent visit to Pontiac…
McKenna, the former state Republican Party chairman, feels he will be bringing a new face to Springfield and by doing so can get a lot more done.
“I don’t have a crew that is already in Springfield with deals being made. There are a lot of good people in the race for governor but I, with no ties, can bring a new dimension,” McKenna said.
Um, Andy, didn’t House GOP Leader Tom Cross endorse you? Isn’t that a ready-made crew in Springfield?
* Speaking of Mark Kirk…
A resolution that may come before RNC members in Jan. would have the effect of eliminating several prominent GOP recruits from receiving party money.
The resolution, offered by IN national committeeman Jim Bopp and nine fellow RNC members, would forbid the national party from spending money on candidates who do not meet at least 8 of 10 criteria set down as party principles.
Those principles include opposing abortion rights, opposing same-sex marriage, opposing the stimulus package and cap and trade bills and supporting surges in Iraq and Afghanistan and gun rights, among others.
Kirk would be excluded from being helped, but don’t expect that resolution to pass.
* Democratic US Senate candidate David Hoffman scored a pretty big endorsement today…
Chicago City Clerk Miguel del Valle said Tuesday the political climate for Democrats is rough and “it’s going to get rougher.” Del Valle says he supports Hoffman because voters want a fresh face.
Del Valle says Hoffman has the best chance of beating Republican Congressman Mark Kirk.
Hoffman says he supports comprehensive immigration reform “as quickly as possible.”
* Democratic gubernatorial candidate Dan Hynes has a new veterans education plan…
Hynes said his proposed legislation would require public colleges and universities to admit veterans over other students, if all other factors are equal. And veterans would get a bump in their ACT scores of several points, though Hynes said he didn’t know exactly how many yet.
A bump in their ACT scores? That kinda rubs me the wrong way. I don’t think we should be messing with those scores. Give veterans some additional cash, pave the way a bit for their entry, but we should probably leave their entrance exam scores alone.
* State Rep. Julie Hamos has a new TV ad in her 10th Congressional District bid. Rate it…
* Related…
* Chicago Democrat Doyle running for treasurer
* The challenge to Ill. Rep. Deb Mell’s petitions
* Foster talks jobs, economy while visiting Aurora’s Hesed House