FROM:
http://www.freerepublic.com/focus/f-news/2499580/posts
http://www.chicagotribune.com/business/ct-biz-0424-broadway-bank—20100423,0,1669391.story
Broadway Bank’s Failure A Twin Blow For Giannoulias
Chicago Tribune ^ | April 24, 2010 | Becky Yerak
Posted on Saturday, April 24, 2010 7:57:44 AM by raptor22
Broadway Bank, the family-owned lender that helped launch U.S. Senate candidate Alexi Giannoulias’ political career, was seized by government regulators Friday night, one of seven Illinois institutions taken over and sold to healthier companies.
The failure of Chicago-based Broadway, which was unable to raise the $85 million it needed to remain independent, was anticipated, and its worsening health has weighed on Giannoulias’ Democratic bid for President Barack Obama’s old Senate seat. The bank had been struggling in recent years with real estate loans gone bad, losing $75 million last year.
Giannoulias worked for his father at Broadway before entering politics, and during his 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.
(Excerpt) Read more at chicagotribune.com ...
“The Giannoulias family took out nearly $70 million in dividends from the bank in 2007 and 2008. Demetris Giannoulias, Alexi’s brother and Broadway’s chief executive, has said most of the money was used to pay corporate taxes and for estate planning after the 2006 death of family’s patriarch, Alexis Giannoulias.”