* Alexi Giannoulias told the Sun-Times today that his family’s bank may very well go under…
“The bank has always been well-capitalized and has always been prepared for a 10- to 15-percent, even 20-percent, decline in real estate values, which, that would be almost unprecedented, But I don’t think anyone, very few people could have foreseen a 40 percent drop in real estate values and that’s why we’re in the position we’re in,” Giannoulias said.
When pushed, Giannoulias conceded he had little hope for his family’s bank to survive, “And that breaks my heart. … It was my father’s whole life.”
Will the bank still be there in November for the general election?
“It’s quite likely that the bank will not be around,” Giannoulias said. “There’s not a lot of capital out there for somebody to find $60, $70 million [as federal and state regulators want the Giannoulias family to reinvest in the bank in the next two months]. I hope I’m wrong.”
He also owned up to his share of the problems…
“I take my share of responsibility for possibly concentrating too much in commercial real estate,” Giannoulias told the Sun-Times’ editorial board. “Obviously, it’s easy to look back four or five years and say that, but I think in my role, that’s part of what I should be doing. This is not something I’m shying away from. This is not something I’m hiding from. I’m here to answer as many questions as I possibly can.”
This does not sound like a guy who would be pushed out of the race if his family’s bank does, indeed, go under. Just the opposite.
*** UPDATE *** We have two press releases. The first is from the Illinois Republican Party…
Appearing before the Chicago Sun-Times editorial board this morning, Illinois Senate candidate Alexi Giannoulias denied he helped a former campaign staffer become Illinois’ top banking regulator get his job – a role that could ultimately determine whether regulators close the Giannoulias family’s Broadway Bank.
“Giannoulias denied having any role in getting his former campaign policy director in 2006, Brent Adams, his current post as Acting Secretary of Financial and Professional Regulation for the state of Illinois, which would have jurisdiction over Broadway Bank,” the Sun-Times reported.
On January 26, 2010, Broadway Bank entered a consent decree with the Illinois Department of Financial and Professional Regulation (IDFPR) and the FDIC. When banks are closed, the IDFPR makes the final decision to close and then names the FDIC as the receiver of the bank. IDFPR is headed by Brent Adams, whose official state biography shows he served as Giannoulias’ Policy Director in 2006. Additionally, Illinois State Board of Elections records show Citizens for Giannoulias paid Mr. Adams $500 in salary in July 2006.
“We already knew about loans to organized crime and Blagojevich insider Tony Rezko,” Illinois Republican Party Chairman Pat Brady said. “Now we see Broadway Bank’s fate in the hands of a Giannoulias insider. We deserve a full accounting of how the State of Illinois will deal with this obvious conflict of interest and why this conflict was never declared.”
The second is from Kirk for Senate…
***FACT CHECK***
Giannoulias Misleads Chicago Sun-Times on Risky Investments, Loans to Organized Crime
False Giannoulias Claim: “I would vehemently disagree that these are reckless or risky loans,” he said. The only reason Broadway Bank appears ready to collapse is because the bottom fell out of the real estate market, he said. (Chicago Sun-Times, “Giannoulias ‘clears air,’ denies risky loan-making, 3/3/10)
Get The Facts:
On January 26, 2010, the Illinois Department of Financial and Professional Regulation and the FDIC ordered Broadway Bank to “cease and desist from engaging in unsafe and unsound banking practices.” (www.idfpr.com)
From 2002 to 2006, Alexi Giannoulias increased Construction & Development loans from $80 million to $356 million – expanding such risky investments from 25 percent to 46 percent of the bank’s total loan portfolio. (Chicago Reader, Alexi’s Albatross, 12/3/09)
From 2002 to 2006, Alexi Giannoulias increased the bank’s brokered deposits (also known as “hot money”) fourfold to $640 million. The typical bank at this point was growing brokered deposits at about 9 percent a year. (“As Lender, Senate Candidate Impacted Bank Woes,” New York Times, 1/30/10)
When Alexi Giannoulias left the bank, the ratio of brokered deposits to total assets at Broadway was 68 percent, according to FDIC records. The average for all federally insured banks nationwide was 4.5 percent. (Chicago Reader, Alexi’s Albatross, 12/3/09)
False Giannoulias Claim: “The bank has always been well-capitalized.” (Chicago Sun-Times, “Giannoulias ‘clears air,’ denies risky loan-making, 3/3/10)
Get the Facts:
From 2006 through 2009, the Giannoulias family took over $100 million in dividend payments out of the bank – money that could have been used to shore up capital reserves. (Consolidated Reports of Condition and Income for A Bank with Domestic Offices Only)
In 2006, the bank set aside $2.2 million as a provision against loan losses, a safety measure that federal regulators require banks to take. Despite its large increase in risky loans, Broadway only doubled its bad-loan reserve in the time Mr. Giannoulias was there. (“As Lender, Senate Candidate Impacted Bank Woes,” New York Times, 1/30/10)
False Giannoulias Claim: But, Giannoulias said, he did his due diligence on those loans and never knowingly gave loans to people linked to organized crime. (Chicago Sun-Times, “Giannoulias ‘clears air,’ denies risky loan-making, 3/3/10)
Get the Facts:
In 2005, Alexi Giannoulias authorized $15.4 million in loans to a convicted mob bookmaker and pimp named Michael “Jaws” Giorango. (“Boulis kin, 2 felons own Martha’s site,” Miami Herald, June 18, 2006; “Loans cast pall over candidate; Treasurer nominee oversees mortgages to crime figures,” Chicago Tribune, April 9, 2006)
Alexi told the Chicago Tribune he once discussed Giorango’s criminal past with him. (David Jackson, “Giannoulias Speaks Up On Loans,” Chicago Tribune, 4/27/06)
Alexi Giannoulias said he traveled to Miami to inspect property the bank had financed for Giorango and met with him there. Giannoulias declined to provide details of that meeting. (“Giannoulias ‘Embarrassed’ By Remarks About Convicted Felon,” Chicago Tribune, 4/27/06)
In 2005, Alexi Giannoulias authorized a $3.6 million loan for Demitri Stavropoulos of Oak Brook, who was convicted in 2004 for his role as ringleader of a multistate sports bookmaking operation that grossed about $1 million a year. (David Jackson, “Loans Cast Pall Over Candidate,” Chicago Tribune, 4/9/06)
Stavropoulos was in federal prison in June 2005 when the $3.6 million Myrtle Beach loan was made. The inmate’s wife signed the loan papers as his ‘attorney in fact,’ land records show. (David Jackson, “Loans Cast Pall Over Candidate,” Chicago Tribune, 4/9/06)
- Carl Nyberg - Wednesday, Mar 3, 10 @ 11:13 am:
Of what is Giannoulias accused?
That he erred in judgment in managing the bank?
That he did something unethical?
That he did something illegal?
- Will County Woman - Wednesday, Mar 3, 10 @ 11:13 am:
Alexi G. is just going to have to take his lumps over the banking issue. i don’t want to hear any whining about or crying from alexi g., his camp, or his supporters. he knew going into all of this that his bank was and could be a BIG issue/problem, and yet he chose to run anyway. so he will have to accept all that it entails. and if the republicans blow things out of porportion and distort for effect, oh well so be it. that’s politics for ya.
- E Pluribus - Wednesday, Mar 3, 10 @ 11:13 am:
Well, while we are at it, let’s get the bosses from CIT, AIG, Merill Lynch, Enron, GM and every other company that got run into the ground and give them seats in the Senate.
Alexi didn’t have any choice. Knowing the bank was going down he had to own up to it on a day when the president is giving a big speech on health care to try and minimize coverage, and hope that the lap dogs in the media will pat him on the head and say “Well, at least you tried.”
The real story here is that the ENTIRE basis for Alexi’s public career, his banking experience, is now clearly a load of bull. He and his family may have been caught off guard by the economy, but that’s why we trust bankers! To protect our money from risks we cannot see! Alexi is no Ken Lay, but he is certianly not a good businessman and admits it.
So a few years as state treasurer, with a decidedly mixed record should have us calmoring to send him to the Senate so he can serve as an Obama lap dog?
- raising kane - Wednesday, Mar 3, 10 @ 11:17 am:
I sure hope somebody is asking him about he and his family gutting the capitol from that bank to line their own pockets. When he says there isnt 60 or 70 million sitting around….there would have been if he and his family hadn’t taken an extraordinary payout recently. Crains documented that well, and I hope these newspapers read that article.
- Small Town Liberal - Wednesday, Mar 3, 10 @ 11:18 am:
Gee WCW, sounds like exactly what Alexi is doing.
- cassandra - Wednesday, Mar 3, 10 @ 11:21 am:
Smart move. Hanging crepe and apologizing, sort of.
It could work. And if the bank goes under soon, by November, Repub ads notwithstanding, it’s going to be old news.
- VanillaMan - Wednesday, Mar 3, 10 @ 11:22 am:
giannoulais now wants to be innoculated from this issue by putting it out there, and hoping that Kirk will wear out this issue by continually pouncing on it till voters are numb.
What Kirk has to do is let the Media keep this story alive, then see where it is by October. Kirk has other fish to fry in order to sell himself to Illinois voters. This should be considered a side issue until after Labor Day.
Remember, every Friday, this story gets replayed until the shoe drops. When that happens, it will make the news for a week or two. Then we’ll see what is left hanging on Giannoulais.
Kirk can remind voters how Giannoulais ran against banks and bankers during the Primary, painting himself as a guy who wasn’t like them. This way, Kirk can just use the hypocracy charge against Giannoulais as this bank drama gets played out.
But - you know how stupid campaigns are. I bet they think if they hammer Giannoulais over this now - they can somehow take a few poll leads and collect more cash for them to spend, (on themselves).
Kirk needs to avoid this.
- Lawman - Wednesday, Mar 3, 10 @ 11:23 am:
Has anyone asked about the millions the family took out of the bank that will probably be the cause of the bank failing?
Does the family plan to put back in the millions they took to help re-capitalize the bank or will they keep the money and let the taxpayers and FDIC clean it up.
- Adam Smith - Wednesday, Mar 3, 10 @ 11:24 am:
As expected, the Sun-Times gave Alexi a pass. It’s not his fault, it couldn’t be helped, etc. Funny, it seems that while more banks than ususal are failing, the vast majority are still in biz.
Carl, he is being accused of being an incompetent banker, that he had business relationships with people involved in illegal enterprises, and that he put short-term profits ahead of the long-term solvency of the bank. None of this is illegal, per se, but no one is accusing him of a crime. He is claiming he is deserving of election to the Senate. These issues are of clear and critical importance and in the minds of many will immediately disqualify him from consideration.
- downstate hack - Wednesday, Mar 3, 10 @ 11:24 am:
At least Scott Cohen’s business is still afloat.
- Brennan - Wednesday, Mar 3, 10 @ 11:25 am:
=I sure hope somebody is asking him about he and his family gutting the capitol from that bank to line their own pockets.=
About that Estate Tax…
About that $250,000 income threshold…
I know candidates have difficult waters to navigate, but sometimes they take on water through their own actions without really acknowledging it.
- bored now - Wednesday, Mar 3, 10 @ 11:26 am:
if broadway bank goes under, alexi will be able to stand up to mark kirk’s attacks by noting that his family’s bank didn’t get any of the hundreds of millions of dollars that mark kirk voted to bail out the big banks.
just goes to show that mark kirk cares more about wall street than illinois…
- Rob N - Wednesday, Mar 3, 10 @ 11:29 am:
Will County Woman says, “Alexi G. is just going to have to take his lumps over the banking issue.”
E Pluribus adds, “He and his family may have been caught off guard by the economy”
Yes, along with nearly every other banker in this country. The banking industry got caught up in a speculative whirlwind and failed to put the brakes on. (In other words, self-regulation doesn’t work.)
At most Giannoulias is responsible for a small portion of the bad debt. But as he’s already explained it’s not like his family withdrew the money to go party or buy yachts. They pulled it out to pay off his dad’s taxes when he died.
Nobody’s whining about these facts except the GOP because they think they can use it to take the spotlight off Mark Kirk’s campaign donations from the banking industry and Tony Rezko not to mention his schizophrenia on Bush’s big bank TARP bailout as Kirk vacillates between support, no wait, not support, no really, he did vote for it… (Is it an even numbered day or odd number? Maybe then we voters will know where Kirk stands on any given issue.)
And so far Kirk’s media team from Eric Elk to Susan “pinkslipped from the Trib” Kuczka have succeeded in ducking and weaving his own culpability in the banking deregulation meltdown.
- Adam Smith - Wednesday, Mar 3, 10 @ 11:31 am:
“his family’s bank didn’t get any of the hundreds of millions of dollars that mark kirk voted to bail out the big banks.”
You mean the money that has been paid back with interest? So by helping to keep the banking system from collapsing with bridge loans that have been paid back, Kirk is evil, but by helping run a community bank into the ground, Alexi is some sort of hero? Good luck with that one.
- BSPII - Wednesday, Mar 3, 10 @ 11:31 am:
For those of you asking questions about the bank dividends:
http://truthaboutalexi.com/the-bank/
- Stones - Wednesday, Mar 3, 10 @ 11:32 am:
I guess better now than later but this is going to be a major issue in the race.
I can imagine with these comments that there will be a run on that bank in the next couple of days. It might not last through the weekend.
- Carl Nyberg - Wednesday, Mar 3, 10 @ 11:33 am:
Adam Smith, how many banks went under before Broadway did?
Does this prove that all the executives and board members at those banks were less competent than Alexi Giannoulias and the rest of Broadway’s leadership?
Mark Kirk is an intelligence officer and cited his inside knowledge and skills as an intelligence officer as evidence that Iraq had WMD. Do you have concerns about Kirk’s competence as a member of Congress or as an evaluator of intelligence information?
- DuPage Moderate - Wednesday, Mar 3, 10 @ 11:36 am:
I have no issues with Alexi’s disaterous loans…a lot of very smart people made the same mistakes.
Bilking the bank of its capital by making dividend payments to insiders … that is inexcusable.
How much is this bad bank going to cost the taxpayers? A TON!
- OneMan - Wednesday, Mar 3, 10 @ 11:37 am:
The bank had a much larger stake in real estate than a lot of other banks.
Also as I understand it this wasn’t caused by home mortgages but commercial lending. Lending that in general should not be liar loans and should require more due diligence.
Since working for the bank is the ‘major’ thing he has done in his life (the longest time) it is a legitimate question.
- Bill - Wednesday, Mar 3, 10 @ 11:41 am:
Adam,
The gov’t still owns 60% of Citibank and about 80% of AIG with no prospect of being paid back anytime soon. It is true that some banks repaid their TARP loans just in time so that they could resume giving their executives multi-million dollar bonuses.
- Bill - Wednesday, Mar 3, 10 @ 11:42 am:
==Alexi took tens of millions of dollars out of the bank in the past 3years==
That’s a lie!
- Will County Woman - Wednesday, Mar 3, 10 @ 11:44 am:
more so than Mark Kirk, when I referred to “the republicans” i’m think the national GOP or the senate campaign GOP folks. this is a high stakes senate race for both sides. I expect national GOP political operatives to rightly exploit this issue—they have to. and alexi g has ties to obama which makes it all the more necessary and fair game for the national GOP. i have no sympathy for alexi g.
- Brennan - Wednesday, Mar 3, 10 @ 11:44 am:
@OneMan
I’d encourage you to read about the lending practices of Washington Mutual for just one example of how you create a banking crisis. However, if you’re a commercial bank and the federal funds rate is 1% the Fed is practically begging you to find borrowers.
http://www.nytimes.com/2008/12/28/business/28wamu.html
- Loop Lady - Wednesday, Mar 3, 10 @ 11:44 am:
Even before this admission, I find little about Alexi that could have compelled me to vote for him in the primary…he is certainly a nice fellow, but has no business running for this seat, based on his public accomplishments…I feel he is jumping the gun politically as did his mentor, Barack did in running for the POTUS…the Obama White House will not be happy when Alexi’s dealings with Tony Rezko/Blago trial ensues…
- Chicago Cynic - Wednesday, Mar 3, 10 @ 11:49 am:
Alexi ain’t going anywhere and it’s too bad. He will not be able to inoculate himself with these efforts, but it is the right move.
Alexi is being accused of being a 33 year old kid who has failed in the only two real jobs he’s ever had. Banker and Illinois Treasurer. As banker he got greedy and now the bank will have to be bailed out. As Treasurer he presided over the loss of $150 million in Bright Start and then lied about it for months.
And how exactly does any of that experience make him qualified to sit in the United States Senate at the age of 33?
- Jake from Elwood - Wednesday, Mar 3, 10 @ 11:49 am:
Fed Up-
Please cite your sources for your rather scurrilous statement.
Bill-
That is a rather simplistic answer to a very complicated set of circumstances. A more reasonable explanation is that not all banks are as bad off as Citi. Remember, some were forced in.
Back to Rich’s question at hand: Alexi is going nowhere, bank failure or not. One wonders if he is actually hoping for an earlier timing so this issue can be old by the time Nov. comes…
- Rich Miller - Wednesday, Mar 3, 10 @ 11:51 am:
fed up’s comment has been deleted for being so false as to be laughable.
- Louis G. Atsaves - Wednesday, Mar 3, 10 @ 11:52 am:
Democrats smirked when banks began to fail last year and blamed Republicans. Even Alexi ranted against “Wall Street” bankers who took money out of failing banks as bonuses and dividends.
While he ranted, he accepted a large dividend and his family took out $70-85 in dividends. Now the bank needs to be capitalized by roughly that amount or it will fail and its remaining assets and liabilities transferred elsewhere.
A bank partly owned by the Democrat now running for U.S. Senator is failing and Democrats are working up excuses for the failure.
Sorry kids. This one will dog him until November. And it should.
- Louis G. Atsaves - Wednesday, Mar 3, 10 @ 11:52 am:
Sorry. Should have added “million” after those figures.
- Will County Woman - Wednesday, Mar 3, 10 @ 11:56 am:
for what it is worth, i agree with VM that Mark Kirk should not exactly carpe diem right now. maybe just a tad bit, but not go full throttle right now. but once the bank goes down, assuming it does, let the nationals have at this full throttle. let them go to town and dine out on it.
- Adam Smith - Wednesday, Mar 3, 10 @ 11:57 am:
MEMO
TO: Alexi Apologists
FROM: Democratic National Senate Committee
RE: Excuses for Broadway Bank
Please continue to engage in frothing class warfare and seek to divert attention from the collapse of Broadway Bank by screaming about bonuses paid to bankers who took TARP money.
The voters will naturally assume that all bankers are Republicans, even though some of the biggest bonus babies are huge Dem funders.
They also won’t figure out that the bankers who took TARP money mostly have saved their banks, while Alexi and his family raided the Broadway piggy bank to keep their family fortune in tact contributing greatly to the bank’s imminent failure.
Given the track record of Illinois voters, they will fall for this diversion hook, line and sinker.
We may be able to fool the voters into thinking that a failed banker is just what the Senate needs right now.
- Niles Township - Wednesday, Mar 3, 10 @ 11:58 am:
While this is smart for Alexi to deal with this by going the boards in the first week of March, it doesn’t change this Dem’s mind, I’m voting for Kirk.
- Lakefront Liberal - Wednesday, Mar 3, 10 @ 12:01 pm:
“Alexi took tens of millions of dollars out of the bank in the past 3years as profits and now even he is admitting the taxpayers will have to pay for this.”
From http://truthaboutalexi.com/the-bank/
“Alexi received $2.5 million in dividends in 2007 and 2008, and more than $1 million went to pay taxes.”
“The FDIC does not use taxpayer dollars. If the bank fails, the only people to lose money on the bank will be the Giannoulias family. FDIC chairwoman Sheila Bair has publicly said that the fund has the necessary resources to weather the growing storm of bank failures.”
Here are some of the sources they cite:
•UBPR Report, Broadway Bank December 31, 2003 Uniform Bank Performance Report
•UBPR Report, Broadway Bank June 30, 2008 Uniform Bank Performance Report
•Alexi Giannoulias personal income tax returns; publicly released 11/25/09
•Consent Order DB No. 2009-DB-92; FDIC-09-573b
•New York Times, “At FDIC, Bracing for Wave of Failures”, February 23, 2010
If FedUp has proof of his/her statements I suggest he/she post it or refrain from making these statements.
- bored now - Wednesday, Mar 3, 10 @ 12:01 pm:
adam, you are free to defend mark kirk’s vote to bailout wall street, if you like. i can only laugh at your reference to tarp making money when you are quick to ignore the fact that the funds that the treasurer’s office invests for the state have made a similar profit!
i eagerly await kirk’s defense of his bailout of the big boys, especially as he seems to be rooting for the demise of one of illinois’ community banks…
- Brennan - Wednesday, Mar 3, 10 @ 12:03 pm:
I wonder if the press is contacting David Hoffman right now. I think Hoffman would run away with it in race against Kirk.
- 60611 - Wednesday, Mar 3, 10 @ 12:04 pm:
No matter what someone thinks about Mark Kirk and Alexi Giannoulias, with the way the Senate is run these days, this election is about giving Mitch McConnell another vote in the Senate. More than ever before, voting in federal elections today is not about the candidate, but the party. It will be close, but I don’t believe Illinois is currently ready to elect a Republican to the Senate.
- Chicago Cynic - Wednesday, Mar 3, 10 @ 12:05 pm:
Dupage,
The bank won’t cost taxpayers a penny. It is insured by the FDIC which, while a quasi-governmental organization, is actually funded by banks themselves.
And I hate to say this, but Bill is right. Alexi got somewhere between 2.5 and 10 million, depending upon how you slice it. The Reader did a comprehensive analysis that showed the number closer to 10. But nobody suggests it’s tens of millions.
- Chicago Cynic - Wednesday, Mar 3, 10 @ 12:07 pm:
60611,
That’s generally true, but Alexi may prove to be such a fatally flawed and unqualified candidate that we wind up electing a Republican anyway.
- Adam Smith - Wednesday, Mar 3, 10 @ 12:10 pm:
Like I said (I guess the sarcasm is lost on humorless liberals), keep it up with your claim that Alexi’s personal incompetence as a banker is going to be less troubling to voters than the TARP program is.
If your response to Broadway’s failure, Alexi’s role in that failure, his business record with shady characters and how it reflects on his qualifications is to simply scream “But Kirk voted for TARP!” it’s going to be an early night on Nov. 2.
And Bored, since you are on your high horse, TARP was a pretty big help for Chase which employes a heck of a lot more people in Illinois than Broadway. No one is rooting for Broadway to fail as you imply. Broadway is going to fail (or even possibly survive) becasue of the actions of Alexi and his family, and he must be held accountable. And since you and your allies are not familiar with the word, you will find “accountable” in the dictionary. Check it out.
- vole - Wednesday, Mar 3, 10 @ 12:15 pm:
Political mea culpas always inspire some skepticism. We are all watching from the outside. Only the insiders know the full story. And in almost all cases, are we outsiders satisfied that we ever get the full picture. Perfect example was Obama’s citing of his lack of judgement in dealing with Rezko on the property purchase. Another was the Clinton involvement in Whitewater. Nothing illegal on their parts, but many doubts remained about the true story.
The one aspect of all of these deals and relationships that does bother me is that almost all of these political characters’ attempts to fly with the high and the mighty, partly as an attempt to secure their fortunes and attain their stature among the moneyed elites. It is this identification with the upper class and how this impacts their political philosophy and their need to maintain the money ties for political viability that is most troublesome.
- Will County Woman - Wednesday, Mar 3, 10 @ 12:18 pm:
60611, it is worth noting that Mark Kirk is a moderate republican and Illinois likes moderate republican. it was not that long ago, within the last decade, that we had a republican in the U.S. senate. I don’t recall much about Peter Fitzgerald with respect to whether or not he was moderate per se, but I do recall that he didn’t walk lockstep with his party and it caused it him to lose their support.
As moderate dem, I like the idea of balance. You guys have Durbin. I think we’re better off as a state when there is balance.
- Brennan - Wednesday, Mar 3, 10 @ 12:24 pm:
WCW: Peter Fitzgerald is an honest, decent man. The better news is he knows how to run a bank. It’s just not in Illinois. It’s in McLean, VA. It’s Chain Bridge Bank.
Fitzgerald recused himself from votes on the confirmation of Alan Greenspan to another term.
=”I even recused myself from Alan Greenspan’s reconfirmation vote as Federal Reserve chairman,” Fitzgerald says. “Greenspan wanted to know why I was the only one who wouldn’t vote for him.”=
Fitzgerald held stock in many bank holding firms.
Thank you Peter for Patrick Fitzgerald.
- Amalia - Wednesday, Mar 3, 10 @ 12:30 pm:
ditto to Loop Lady!
- north shorer - Wednesday, Mar 3, 10 @ 12:33 pm:
To Rob N,
I was following your comment all the way until you had to make the “gratuitous insult and rabid comment” about Susan Kuczka. She was one of the Tribune casualties. But to put that in your thread was a bit gratuitous.
- JonShibleyFan - Wednesday, Mar 3, 10 @ 12:34 pm:
“I think Hoffman would run away with it in race against Kirk.”
I always enjoy when people talk about how a candidate who couldn’t win the Primary would somehow walk away with the General.
- DuPage Moderate - Wednesday, Mar 3, 10 @ 12:37 pm:
Chicago Cynic - the FDIC is bankrupt. Wait until they have to take over Amcore and a litany of other banks that nobody wants to touch with a 10 foot pole.
Who is going to have to bail out the FDIC?
- Louis G. Atsaves - Wednesday, Mar 3, 10 @ 12:53 pm:
“The bank won’t cost taxpayers a penny!”
Like magic, the FDIC and the bank which takes it over grows a few dollar bills and thus, no harm, no foul! That is one big relief! Now I don’t have to worry about anything anymore when it comes to failing banks!
But wait! Don’t banks charge fees so that they can pay the FDIC for this? And who pays for those fees? Taxpayers and those who bank with banks?
So someone pays after all. And it is still us?
Imagine that!
- Anonymous - Wednesday, Mar 3, 10 @ 12:53 pm:
Great analysis and advice, V-Man.
- Deep South - Wednesday, Mar 3, 10 @ 1:05 pm:
Alexi is smart to get his out there now…to control the message rather than let someone else run with it.
Scott Brown was “supposed” to be 41…turns out he’s 61. I think Kirk will probably be 62…at least most of the time.
The right wing is all ga-ga over these guys until they realize they’re RINOs. Gotta love it.
- R.T. - Wednesday, Mar 3, 10 @ 1:08 pm:
Putting the above talking points from both campaigns aside, this was a smart move by Alexi to front off the pending failure of the bank today. It might take a little of the sting out of the hit he’s gonna take when and if the FDIC moves in. A media feeding frenzy will ensue if that happens.
If the Feds take over the bank, Alexi’s immediate concern has to be whether or not a Dem party big wig (like Durbin, Ried, Bill Daley, or a “senior White House source,”) is quoted in a newspaper story encouraging him to “re-evaluate” the viability of his candidacy. That will start a vortex that might not necessarily suck him out of the race, but it will consume Alexi’s candidacy and likely turn Illinois into a “safe” GOP pick-up. Good luck raising money after that.
Given the attempts last Summer to recruit Madigan, Dart, and others into the campaign, it’s clear the Dem Senate Campaign Committee has always seen Alexi as a probable loser. The question is do they want to try to force him out if Broadway fails. That could be very messy and I don’t think they’ll do it without an okay from the White House — and I don’t think that okay will come. We will see.
One thing is for sure, if I worked on the Kirk campaign I would have a camera crew stationed outside of each Broadway Bank branch every Friday to capture video of what will be billed as a “federal raid.”
- Anonymous - Wednesday, Mar 3, 10 @ 1:11 pm:
===
The right wing is all ga-ga over these guys until they realize they’re RINOs. Gotta love it.
===
I’ll bet that you’ll probably be surprised at some point, Deep South, as to how much the Conservatives and Moderates decide they have in common during this election–and how much of that is actually going to appeal to Is and Ds, too. You’ll see.
- VanillaMan - Wednesday, Mar 3, 10 @ 1:21 pm:
Scott Brown was “supposed” to be 41…turns out he’s 61. I think Kirk will probably be 62…at least most of the time.
That’s useless spin.
- fed up - Wednesday, Mar 3, 10 @ 1:26 pm:
Rich I apolagize the 70 million went to his family as a whole not just him. And the FDIC beacause of the amount of bank failures is being backstopped by the US treasuray thats the taxpayer.
- Ghost - Wednesday, Mar 3, 10 @ 1:33 pm:
=== Has anyone asked about the millions the family took out of the bank that will probably be the cause of the bank failing? ===
Yes, and the question was answered. The withdrawl was triggered by income tax payments the Death of Alexi’s father. neither the conomy or Alexi caused the tragic passing of his father. The bank share holders had to pay from the banks income 41 million in taxes and fees. So the 70 million went to pay the governemtn for the services itprovides, and the reamining 29 mil was distributed as required by law.
Alexi investment decisions are a fair topic. We should look at the 9% of the loans and ask if those were good decsions, if not they are just as fair game as intelligience officer Kirk tweeting information whil on duty about security matters from DC.
- Ellen Beth Gill - Wednesday, Mar 3, 10 @ 1:41 pm:
If Alexi has to take his lumps, Mark Kirk should too. Kirk was against any suggestion of reasonable financial reform. Just this past spring when all the problems in lending were known, Kirk voted to exempt high cost mortgage loans from predatory loan laws, but high cost mortgages ARE the very predatory loans that needed regulation. Kirk also voted against holding loan packagers liable for deceptive practices and he voted against requiring lenders show that borrowers were able to pay back loans sold to them. During the Bush years, Kirk did absolutely nothing to reign in loose lending practices. As for financial reform, Kirk pushed to repeal reforms enacted in Sarbanes- Oxley. You cannot have it both ways arguing that one small community bank is at fault for all our financial industry woes and saying nothing about Kirk’s stint in Congress supporting everything that was done to create the problem and against anything suggested to reign it it. Kirk’s hands are not clean in this.
- Will County Woman - Wednesday, Mar 3, 10 @ 1:44 pm:
LOL! Is it just me or are the Alexi G people in a tizzy today? Concerned/worried much??????
lumps…
- dupage dan - Wednesday, Mar 3, 10 @ 1:46 pm:
@CC,
=The bank won’t cost taxpayers a penny. It is insured by the FDIC which, while a quasi-governmental organization, is actually funded by banks themselves.=
I get a kick out of that. As though the banks pay for that FDIC insurance out of their own pockets. It’s free? Taxpayers don’t pay” Weeeeeeeeeeeee!
Really? The banks pay for that? Really?
NOT - the banks pass that cost onto us, silly.
- QUinn T. Sential - Wednesday, Mar 3, 10 @ 1:48 pm:
{This does not sound like a guy who would be pushed out of the race if his family’s bank does, indeed, go under.}
The voters will take care of this little detail.
- dupage dan - Wednesday, Mar 3, 10 @ 1:48 pm:
I should really read lower posts before I post. Redundancy is not funny.
- Ghost - Wednesday, Mar 3, 10 @ 1:53 pm:
Lol is it just me, or are the Kirk people in a bitt of a tizzy today??? Woried/concerned much??!??
lumps….
- fed up - Wednesday, Mar 3, 10 @ 1:56 pm:
Rich you often criticized my mention of Alexi ties to loans to organized crime figures. But it seems he has been friendly to those with well know criminal ties.
- Anonymous - Wednesday, Mar 3, 10 @ 2:07 pm:
It’s just you, WCW. Others are trying to have a discussion without laughing at one another.
- bored now - Wednesday, Mar 3, 10 @ 2:18 pm:
adam, i find it curious that you are eager to hold alexi accountable (i have no problem with holding him accountable for things he’s actually done) but you’re not inclined to do the same isn’t to be true for mark kirk.
perhaps the relevant word in the dictionary is hypocrisy.
there is absolutely no question that community banks in this country are under extraordinary stress, and quite a few are not likely to survive. it’s also true that the federal government expects banks to treat mob figures just like ordinary customers, because they have been far more successful in tracking money going through our banking system and prosecuting them for their crimes using that knowledge.
but we are supposed to give a pass to one of the main sponsors of our immoral invasion of iraq? yeah, right.
the difference between alexi giannoulias and mark kirk here is that alexi is willing to talk about these issues. kirk hides in the safety of the beltway, among all the other co-dependents of george bush’s disastrous policies who want nothing more than to filibuster president obama’s agenda. i understand why kirk has to attack alexi: he can’t stand on his own two feet. he’s never been able to, and he’s not likely to start now. he hid from his constituents as a congressman, and he’ll hide from illinois forevermore.
alexi has been open to answering the questions people have about his candidacy. i certainly wish he had done so sooner, but politics is a pretty crappy business, and few people really like to get down in the mud where people like kirk dwell. you can’t blame alexi for wanting to run a more positive, issues-oriented campaign that ignored kirk’s personal attacks. but at least alexi has honor. kirk is likely to fly off and campaign “at the front lines” in order to avoid the people of illinois and its press…
- Adam Smith - Wednesday, Mar 3, 10 @ 2:36 pm:
Bored,
Thanks again for proving how pathetic and desperate your camp is. Now it’s about Iraq? Amazing.
But you are right about Kirk. How dare a person elected to represent voters in Congress spend all that time “hiding” in Washington. He should be skipping votes and committee meetings. I’m sure you would never criticize that.
I keep telling myself that I’m going to get back to work today, but you keep positing these ridiculous arguments I just can’t resist.
- wordslinger - Wednesday, Mar 3, 10 @ 2:42 pm:
For Alexi, Broadway Bank is a Big Bowl of Bad (note the alliteration).
For negative TV spots, it’s absolute gold: a sinister cast of characters, hinky loans and then…. bust.
At least he had the sense to bite the bullet with the press now. But it’s going to be real tough to overcome.
- dupage dan - Wednesday, Mar 3, 10 @ 2:44 pm:
bored now,
=but we are supposed to give a pass to one of the main sponsors of our immoral invasion of iraq? yeah, right.=
Kirk wasn’t the only one who sponsered the war in Iraq. President Bush had the majority support of Congress. Even from the guy who was for it before he was against it. And so, to head you off at the pass - yeah, we all know you think Bush lied. Yadayadayada. Everyone else in the know world believed Saddam had those weapons. Even Iraqi’s believe it.
It is time to move on. Bush is not the president anymore. Comparing AG to MK in that regard doesn’t even compute.
BTW, how has Alexi’s campaign been going, lately? Lots of late nights at the campaign office, I hear. You should take a break from all that before the campaign heats up in the summer.
- Anonymous - Wednesday, Mar 3, 10 @ 2:46 pm:
bored, Kirk is out campaigning for Senate, representing his current Constitutents, and in front of the media on a very regular basis, so I don’t think it’s fair to say he’s “hiding”.
- bored now - Wednesday, Mar 3, 10 @ 2:48 pm:
so it’s acceptable to attack democrats for things that happen before they served in public office, but unacceptable to criticize republicans for policies they aggressively promoted WHILE in office during the same time period?
again, i think the word we need to look up is hypocrisy. i am, of course, thankful that you can’t resist (i sure hope you’re advising kirk’s campaign)…
- bored now - Wednesday, Mar 3, 10 @ 2:53 pm:
a republican member of my wife’s family down in taylorville mentioned kirk’s refusal to take questions from would-be constituents and used the word hiding.
i’m pretty sure that i’m (unexpectedly) on kirk’s press list, and i haven’t noticed his making himself available for questions. but, hey!, maybe he’ll start to talk to people soon! we can always hope.
and, sorry, dan, i couldn’t give you any insight as to how alexi’s campaign has been progressing. i see what you see: that he’s ahead in the polls. if tom and company are spending late nights at the office, good for them! this seat is too important to allow it to slip away to another republican who will obstruct the president’s agenda…
- dupage dan - Wednesday, Mar 3, 10 @ 3:03 pm:
bored,
I am counting on Kirk to obstruct the president’s agenda. Your post was just so over the top I was sure you had to be a shill, er, I mean, staffer.
- Anonymous - Wednesday, Mar 3, 10 @ 3:12 pm:
I’ve seen many candidates in my time get whisked away by staff or volunteers because of other scheduled events. Let’s hope your relative has another opportunity soon to say hello or ask a question.
- Carl Nyberg - Wednesday, Mar 3, 10 @ 3:39 pm:
How many forums will Kirk do in the nine months between the primary and general election where he takes questions from anybody who walks in the door?
Forums that are publicized in advance?
I’ve questioned Kirk one-on-one and it doesn’t play well. He’s condescending. He’s dismissive of people who don’t agree with him. He’s not a likable guy.
Kirk may have a knack for bamboozling people in the media. But how many people in the media are competent to question Kirk on his military record, foreign policy or financial sector regulation?
- Prognosis Negative - Wednesday, Mar 3, 10 @ 3:41 pm:
Bored,
You wrote, “it’s also true that the federal government expects banks to treat mob figures just like ordinary customers, because they have been far more successful in tracking money going through our banking system and prosecuting them for their crimes using that knowledge.”
What are you talking about? You just lost some credibility.
- Downstater - Wednesday, Mar 3, 10 @ 3:42 pm:
I’ve served on a community bank board for more than 20 years. The bank failures can be classified in two categories; those that failed due to bad lending practises, and those that failed with poor investments.
Alexi’s bank is in trouble because of the lending activities which were heavily weighted in development type loans.
By comparison, many banks have failed because they had investment dollars in items like GM Bonds, or Fannie Mae or Freddie Mac stock.
Banks that fail because of the incredible failures of investments are less culpable than those like Broadway, where risky bets were carefully calculated.
I find it incredible that Alexi ran for Treasurer solely on his experience as a banker. So, as he runs for the Senate, his sole experience is shown to be a complete failure - for the bank too.
The experience of Broadway Bank should be the sole issue of whether Alexi should be a senator. After all, it was the only resume item he presented to be Treasurer.
- bored now - Wednesday, Mar 3, 10 @ 3:51 pm:
a conversation i had with a person who worked for the federal reserve in dc. i asked about this whole thing in 2006, and i was basically told that the feds wanted banks to treat mobsters like regular customers because that was how we catch them…
- Anonymous - Wednesday, Mar 3, 10 @ 3:58 pm:
Wow Tribune story on Clout Street said that Alexi couldn’t remember what he had said to them in 2006, so “he would have to check his past statements before saying any more because he doesn’t want to give inconsistent answers.”
- Bill - Wednesday, Mar 3, 10 @ 4:00 pm:
Way to go, bored!
I’m proud of you.
Let ‘em have it.
- Pre - Wednesday, Mar 3, 10 @ 4:05 pm:
Anonymous - and it looks like he said that after being reminded thats not what he said in 2006.
–In answering questions about Broadway’s loans to Giorango, Giannoulias said Giorango had a relationship at the bank before he worked there full-time after his graduation from law school. But in offering his latest explanation of his contact with Giorango, Giannoulias today at first contended he was unaware of Giorango’s criminal history.
That contradicted Giannoulias’ comments in 2006 to the Tribune, in which he acknowledged knowing Giorango had a criminal background.—-
http://newsblogs.chicagotribune.com/clout_st/2010/03/giannoulias-seeks-to-blunt-damage-says-family-bank-likely-to-fail.html
- The REAL Anonymous fka Anonymous - Wednesday, Mar 3, 10 @ 4:06 pm:
(Anon 3:58 just reminded me that I need to remember to use my new handle.)
Anon 3:58, I believe that was part of one of his recent interviews that’ available online. They provided the statement to him, and I believe he referred back to the original statement he’d made.
- RJW - Wednesday, Mar 3, 10 @ 4:11 pm:
I think the Republican Party response is disgusting. I don’t know Brent Adams nor have I ever worked for him but I hear nothing but good things about him. To drag his name through the mud is unnessary. And to bring up he was paid $500 by Alexi’s campaign?? So what?? I’m sure that $500 has secured his loyalty. I am so sick and tired of the nastiness of campaigning these days in terms of dredging other, unrelated people through the mud. Attack the candidate all you want. All others are out of bounds in my opinion.
- dupage dan - Wednesday, Mar 3, 10 @ 4:15 pm:
Prognosis Negative,
You missed that one, pal. While I don’t agree with bored, I got that point in his agologia.
Is that AG’s defense? That he was working w/goons ’cause the feds wanted him to do it?
- 10th Indy - Wednesday, Mar 3, 10 @ 4:25 pm:
Real -
A new clout street story posted at 3:30 with this
“In answering questions about Broadway’s loans to Giorango, Giannoulias said Giorango had a relationship at the bank before he worked there full-time after his graduation from law school. But in offering his latest explanation of his contact with Giorango, Giannoulias today at first contended he was unaware of Giorango’s criminal history.
That contradicted Giannoulias’ comments in 2006 to the Tribune, in which he acknowledged knowing Giorango had a criminal background. When reminded today of his past comments, the treasurer said he would have to check his past statements before saying any more because he doesn’t want to give inconsistent answers.”
You would have thought he’d check his past statements in preparing for the ed-board blitz.
- Rob N - Wednesday, Mar 3, 10 @ 4:27 pm:
Anon 3:58 has a silver tongue, “Wow Tribune story on Clout Street said that Alexi couldn’t remember what he had said to them in 2006, so “he would have to check his past statements before saying any more because he doesn’t want to give inconsistent answers.””
Wow?
And if he HAD given an inconsistent answer how many nanoseconds would it have taken for you to point it out?
Sheesh.
The Kirk Kool-aid is flowing today.
- The REAL Anonymous fka Anonymous - Wednesday, Mar 3, 10 @ 4:34 pm:
“The Kirk Kool-aid”….
Obviously, not everyone drinks Kool-aid, Rob–as I’m sure you know and I probably didn’t need to point out to you. lol
- Brennan - Wednesday, Mar 3, 10 @ 4:51 pm:
Alexi couldn’t remember what he had said when the Sun-Times Editorial Board spoke to him before the primary.
I can’t remember everything I have said or written. Who can?
- Adam Smith - Wednesday, Mar 3, 10 @ 5:02 pm:
So Alexi was working undercover for the FBI trying to root out mob money laundering by doing business with racketeers?
You Alexi flacks will want to give him a medal next.
Please, please, please keep this up. Now it’s not just political idiocy, it’s downright entertaining!!!!
- LincolnLounger - Wednesday, Mar 3, 10 @ 6:16 pm:
Thank God Hoffman didn’t win the primary.
- Tell the Truth - Wednesday, Mar 3, 10 @ 6:48 pm:
IMO it’s a direct result of the fractional banking
system. There may be as many as 3,000 more banks
in the same shape.
Why, after billions in bailouts and trillions of
$ in deficits, that will be paid for by you and
your decendants, would you not support Ron Paul’s
HR 1207 and Audit the Fed?
- Park - Wednesday, Mar 3, 10 @ 6:50 pm:
This story will not go away. IMHO, we’re looking at another Jack Ryan situation (without the sex).
I give the over/under for his withdrawl as candidate at April 30th.
But no, I don’t think the D’s will do as bad picking a replacement.
If I’m wrong, I buy a round. But I just see this coming. It will be tough if the D’s have to pick two statewide candidates after the primary.
- 365-24-7 - Wednesday, Mar 3, 10 @ 7:43 pm:
Bored Now,
How much do your knees hurt? Lock Jaw?
- The REAL Anonymous fka Anonymous - Wednesday, Mar 3, 10 @ 7:52 pm:
===
And so far Kirk’s media team from Eric Elk to Susan…Kuczka have succeeded….
===
Sorry. I missed this earlier. Isn’t Susan Kuczka the new (fairly new) spokesperson Kirk hired?
I didn’t know she was from the Tribune. (Or, did I, but forgot?)
- Anonymous - Wednesday, Mar 3, 10 @ 8:41 pm:
You know, in general, if you know you’re telling the truth, you usually don’t have to check what you said before.
By the way, I’m not a Kirk team member. Hoffman sure would have been a stronger candidate than Alexi. But we already knew that.
- Arthur Andersen - Wednesday, Mar 3, 10 @ 9:57 pm:
bored now, do you have any more cool Outfit stories to tell us?
Even Bill din’t buy that line of hooey.
- The REAL Anonymous fka Anonymous - Wednesday, Mar 3, 10 @ 10:25 pm:
You have to admit, though, AA, it was kind of entertaining. lol
- Rob_N - Wednesday, Mar 3, 10 @ 10:52 pm:
REAL Anon fka Anon says, “Sorry. I missed this earlier. Isn’t Susan Kuczka the new (fairly new) spokesperson Kirk hired? I didn’t know she was from the Tribune.”
Among other beats, Kuczka covered the 10th District Congressional campaigns (Seals v Kirk).
She had a history of being rather sympathetic to the Kirk cause in her writing for the Trib. In fact, Rich can speak for himself on it if he likes but in 2008 he dissected Kuczka’s article about the Seals gas station event by pointing out she appeared to pour heavy amounts of pro-Kirk spin into it, calling her reporting “way out of whack” and contrasting her article to a far more neutral one about an Indiana GOP candidate who did a similar event. (A comparison I also made at the time.)
- Rob_N - Wednesday, Mar 3, 10 @ 11:06 pm:
Rich,
Did you remove my reply to North Shorer or did the post just not make it online?
–
North Shorer,
By way of reply to your comment to me, please see my response to REAL Anon just above. Ms. Kuczka was fairly obviously helping Mr. Kirk even as she worked as a “reporter” for the Trib. And yes she was part of last year’s mass of layoffs at the Trib and quickly landed on her feet with Kirk’s campaign team.
It’s not clear why you would consider pointing out Mr. Kirk’s deep ties into Illinois media to be gratuitous, insulting or rabid.
Hiring someone with experience inside the largest media group in the state who is also sympathetic to your campaign is a smart political move. It calls into question the neutrality and validity of the Trib’s reporting on Kirk (and by extension Giannoulias) but it is smart politics.
- bored now - Thursday, Mar 4, 10 @ 6:26 am:
(sorry for the late replies, i was at toni’s thing last night)
adam, you seem to be having trouble understanding english (or common sense). i didn’t say (or infer) that alexi “was working undercover for the FBI trying to root out mob money.” you made that up (which explains why you’re so entertained!).
i was concerned enough about madigan’s insinuation in 2006 that alexi had participated in something illegal (by providing loans to mobsters) that i actually asked several people i knew who would know about such things (someone who worked at the fed, someone who was janet reno’s right hand person). i know, i know, you’d never think of verifying an accusation like that (and, since illinois is the center of the universe, i’m sure you can’t imagine talking to anyone who lives outside the state). just another difference between us.
i don’t know if alexi deserves a medal (what kind of medal do you want to give him?), but he does deserve your vote. after all, he never claimed there were weapons of mass destruction in iraq! alexi didn’t buy dick cheney’s hooey. we have proof of mark kirk’s bad judgment and his willingness to fall under the spell of bad people.
just as we have proof of alexi giannoulias’ political independence of the powers that be right here in illinois!
365-24-7, i’m sorry, i just don’t understand what you’re trying to say. i suppose that you’re trying to insult me, but i just don’t get it. i *do* understand that my support for an independent democrat who will beat mark kirk in november is probably frowned upon by the madigan loyalists and the republicans who read the blog, but y’all seem to have learned how to deal with *my* independence here (i’ll never forget being told by a madigan boy that a state rep. race in peoria was more important than the presidency!).
arthur, not really familiar with the mob references. that’s why i have to ask people who actually know stuff. i didn’t grow up here and we don’t have “cool” associations with the mob down in florida where i grew up. i know, i know, that means i don’t get the inside jokes. at least i don’t allow them to tear down an honorable man. it’s a tough life to have been raised in an ethical environment. i’ll just have to live with it…
- Anonymous - Thursday, Mar 4, 10 @ 7:55 am:
Hmmm, Kass seems to have read Alexi’s comments the same way I did.