Alexi Giannoulias' Broadway Bank Scandal Unfolds

As the Democratic candidate for Senate in Illinois, Alexi Giannoulias has been embroiled in a controversy surrounding his role in the near-collapse of Broadway Bank, a financial institution owned by his family. Although Giannoulias promised to address questions about the bank's questionable loans during his campaign, he has since refused to answer direct questions, instead claiming that he has already addressed the matter in the past.

The controversy began when the FDIC entered into a consent decree with the Giannoulias family's Broadway Bank, ordering them to raise more than $50 million. The decree came after reports that Giannoulias and his family removed $70 million in profits from the bank just before the real estate market collapsed, and that many of the failing loans and investments were authorized by Giannoulias while he was the bank's Chief Loan Officer.

Key Takeaways:

• Giannoulias' refusal to answer direct questions about his role in the collapse of Broadway Bank has raised concerns about his character and fitness for public office.
• The Broadway Bank scandal has become a major issue in the Senate primary, with opponents Cheryle Jackson and David Hoffman calling on Giannoulias to withdraw from the race.
• The NRSC has issued suggested questions for reporters to ask Giannoulias, including whether he misled voters during the primary election and whether he authorized loans to Michael "Jaws" Giorango, a known crime boss.
• Giannoulias' decision to remove millions of dollars from the bank has raised questions about his role in the bank's collapse and whether he will help to recapitalize the institution.
• The scandal has sparked a national debate about the character and qualifications of Giannoulias as a candidate for public office.

Statistics:

• The FDIC ordered the Giannoulias family's Broadway Bank to raise more than $50 million as part of the consent decree.
• The bank's failed investments and real estate holdings totalled over $70 million, with many of the failing loans and investments authorized by Giannoulias while he was Chief Loan Officer.
• The bank's Chief Loan Officer, Giannoulias, removed millions of dollars from the bank just before the real estate market collapsed.
• The NRSC has issued 8 suggested questions for reporters to ask Giannoulias about the scandal.

Sources:

• Associated Press, 1/29/10
• State Journal Register, 2/7/10
• Crain's Chicago Business, 1/27/10
• Chicago Sun-Times, 1/27/10
• NBC 5 Chicago, 1/29/10
• FOX News Chicago
• Springfield Journal-Register
• NRSC (National Republican Senatorial Committee)