SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
US Senate Sunday roundup

Sunday, Jan 31, 2010

* The Alexi Giannoulias campaign was probably hoping to change the subject this morning

Democratic Senate candidate Jacob Meister dropped out of the race with two days to go and endorsed rival Alexi Giannoulias.

Meister, a lawyer who is openly gay, made his announcement this morning at a Giannoulias rally in Chicago.

Meister was having difficulty gaining much traction in the race. A recent Tribune poll showed him garnering only 1 percent of support.

During debates, Meister has defended Giannoulias against attacks made by rival David Hoffman. He also has taken exception to comments Hoffman has made about being the only candidate to be married with children. He said such comments were insulting to gays who are unable to legally marry.

Meister’s one percent means zip, and he dropped out so late that he’ll still be on the ballot, but a “fresh” story like this could step on the “older” story about the family bank problems.

At times, Meister almost looked like a stalking horse for Giannoulias. Cheryle Jackson said as much today

“This was not a surprise,” Jackson said of Meister’s move. “This is something we knew all along, that he was in the race to help the treasurer. That being said, he was only pulling 1 percent at best. So I think it was inconsequential.”

Meister responds

But Meister called “preposterous'’ the suggestion that he was a Giannoulias pinch-hitter from the start.

“The suggestion that I was in any way recruited or in cahoots with Alexi or anyone in his camp is ridiculous,'’ Meister said.

* Complicating matters for Giannoulias today was the fact that a New York Times columnist wrote a brutal piece in today’s edition

Alexi Giannoulias would be nothing in Illinois politics if not for Broadway Bank. Now the near-failure of that family-owned bank is threatening to make him a political non-entity again.

More…

The [family bank’s] move into real estate coincided with a headlong push into brokered deposits. This is quintessential hot money — large amounts that jump from bank to bank, each bank offering the lure of high interest, which the banks then must fund by making ever-riskier loans.

During Mr. Giannoulias’s time at the bank, brokered deposits catapulted fourfold, to $640 million. The typical bank at this point was growing brokered deposits at about 9 percent a year. Mr. Giannoulias’s bank was increasing its load by as much as 48 percent in a single year. Broadway Bank’s brokered deposits reached 80 percent of total deposits in 2006.

No one knows for certain how big a role Mr. Giannoulias played in these decisions. As Broadway’s top lending officer, he must have influenced the move into construction lending. As a connected family member, he was probably present during discussions of the hot-money play. Certainly, he took part in the family’s decision to take out some $70 million in dividends from the bank in 2007 and 2008, even as it careened toward a consent decree with the F.D.I.C.

But the column was a whole lot of false conjecture, according to the campaign

Giannoulias has admitted to making loans over the years that, in hindsight, he would not have made. He has pointed out that 700 community banks around the country have entered into consent decrees in recent years.

Giannoulias emphasized he has had no role in running the bank for four years. He is a 4 percent non-voting stock owner. The decree requires the Giannoulias Family re-capitalize the bank. Will Giannoulias chip in? “If they ask, of course I’ll help out,” he said.

The family withdrew $70 million from the bank in recent years — primarily to pay debt on Giannoulias’ father’s estate, Giannoulias’ campaign has said. Only a small fraction of that went to Giannoulias

Still

Among the loans Giannoulias has gotten heat for:

* More than $10 million from 2001 to 2005 to alleged Father & Son Russian mobster team Lev and Boris Stratievsky. Father Lev has passed away. Son Boris is in jail facing money-laundering charges. Broadway funded development projects some on the South Side — that tenants and city attorneys complained were roach motels. Broadway has been unable to collect on the loans.

* About $12.9 million to convicted bookmaker Michael Giorango for a Miami Beach hotel and a Hollywood, Fla., restaurant, among other ventures, according to Crain’s Chicago Business. Broadway has sued Giorango and his partner, Demitri Stavropoulos, convicted of running a betting operation in Chicago, seeking to get the money back. Giannoulias initially downplayed his relationship with Giorango, noting the loans to him started before he joined the bank. Later he said he went to Miami to meet Giorango and inspect the property, and that another $3 million loan to Giorango was for a South Carolina casino.

* Related…

* AP: Meister drops out, backs Giannoulias for Senate

* Hoarse or not, Senate candidates step up pitch

* Democratic Senate candidates warn of GOP tide

* Reuters: Could Illinois’ Senate race copy Massachusetts?

- Posted by Rich Miller        


No Comments

Be the first to comment.

Sorry, comments for this post are now closed.


* Rauner announces new appointments
* Reader comments closed for the weekend
* Unemployment rate falls again, IDES not impressed
* "The Governor’s Axe"
* *** UPDATED x1 - Former aide says report coming *** Quinn shirked final constitutional duty
* Question of the day
* Umm... Huh?
* Unclear on the concept
* Rauner roundup
* Another possible Kirk foe emerges
* *** UPDATED x2 - ACLU responds *** Calm down
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Tablet lessons Samsung needs to learn this year
        * Samsung developing a wearable sensor to detect strokes
        * Samsung Galaxy Note Edge review rebuttal: Worth the weird
        * Windows Holographic, BlackBerry’s app entitlement, hackers hacking your calls | Pocketnow Weekly 132
        * California DMV changes course, reverses registration policy change for rideshare drivers
        * The Week in iPad Cases: Hard Candy's shock-absorbing case, the latest collection from Rebecca Minkoff, and more
        * Amazon offers discounted Prime membership to celebrate Golden Globe win

        * Microsoft’s announcements show a company turning the corner
        * Need a podcast player for Chromebook? Try smarterPod
        * Resumazing Scores Your Resume Based on a Job Posting
        * As Ad Business Shifts to Machines, AOL Restructures Its Sales Staff in a Major Reorg
        * Declining sensor costs open up new consumer applications
        * Apple Shipped 73 Million iPhones in Q4, Apple Watch To Debut in March (Report)
        * Half of U.S. Phone Activations in the Fourth Quarter Were iPhones (Report)

        * Emptying the SoxFest notebook
        * White Sox honor, remember Mr. Cub at SoxFest
        * Flowers: 'My job to lose' behind plate for White Sox
        * White Sox add baserunning legend Coleman to staff
        * Rick Hahn, Conquering Hero
        * Memories of '05 championship rekindled at SoxFest
        * Back at home, Samardzija ready to get down to business

        ...............


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        January 2015
        December 2014
        November 2014
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Anti-bailout party the favorite as Greeks cast .....
        * Erickson: Rauner can't cut his way out of state.....
        * Day of reckoning?..
        * Tom Kacich: Plenty of reform bills already file.....
        * Rauner can't cut his way out of state's financi.....
        * Editorial: Chicago politicians need to visit Ce.....


        * Airlines cancel 85 flights at Chicago's O'Hare amid wet snow
        * Chicago's mayoral candidates address women's issues at forum
        * Chicago mayoral candidates discuss elected school board
        * Ex-Major League Baseball player Ted Lilly accused of fraud
        * 'Deadheads' ask to camp out during band's Chicago concerts
        * Logan County rejects wind farm plan
        * Authorities say 1 dead in suburban Chicago house fire
        * Proposed Illinois legislation would ban powdered alcohol
        * Banks remembered as ambassador of baseball and Chicago
        * Rose, Butler score 20 each as Bulls top Mavericks 102-98

        * Statehouse Insider: Gov. Rauner sounding a lot like primary candidate Rauner
        * Veterans voice opinions about future of Oak Ridge war memorial site
        * 85,000 temporary driver's licenses issued to immigrants
        * Proposed Illinois legislation would ban powdered alcohol
        * Quinn leaves office without writing final statement
        * AG Madigan blocks Lottery termination agreement
        * Number of Illinois households on food stamps still rising
        * Numbers of Illinois households on food stamps still rising
        * U of I president concerned about future of higher ed
        * Rauner previews 1st-year priorities: Cut taxes, Medicaid

        * 'Mr. Cub' Ernie Banks dies at 83
        * How CME is looking to buy its way into foreign markets
        * Need to furnish your new office? Look no further
        * Hospitals full of empty beds
        * This hospital system plans radical surgery to solve its vacancy problem


          * Woman hurt after car slams into bus stop, rolls over on Northwest Side
          * 4 cops injured after 2 squad cars collide in Little Village
          * 2 hurt in crash on Lake Shore Drive
          * Man fatally shot in Gary
          * 7 hurt in shootings Saturday
          * Man injured in shooting in Elgin
          * Police seize over $1 million worth of marijuana
          * No bombs on planes in Atlanta after threats, which prompt response by Chicago police
          * Mother, daughter charged with attacking school officials
          * Man charged with assaulting boy, 10


          * Study projects Illinois deficit growing to $14 billion by 2026
          * Chicago Cubs legend Ernie Banks, 1st black player in team history, dies
          * M.E.R.C.Y. Celebrates 15 Years Amid Financial Challenge
          * Springfield Airport Will Make Another Attempt To Add Gambling
          * Potential Pension Case Holdup
          * Listen to State Week - January 23, 2015
          * Art Beat: Pirates, Local Tunes & Movies Galore
          * Speaker Madigan: How Can Illinois Prevent A Sandy Hook?
          * Frerichs Keeping Rutherford Investigation Under Wraps
          * Collecting On Line Sales Tax & A Springfield Manufacturer Expands On WUIS/SJR Business Report


          * Our Opinion: Vision should be a key theme in Springfield mayor's race
          * Bernard Schoenburg: Campaign contribution gets them talking in Ward 7
          * Angie Muhs: SJ-R, WMAY want to involve readers in Springfield primary
          * Andy Shaw: Settle in for a dramatic first act at the Illinois Capitol
          * Quote of the Day: Sunday, Jan. 25, 2015
          * Statehouse Insider: Gov. Rauner sounding a lot like primary candidate Rauner
          * Statehouse Insider: Gov. Rauner sounding a lot like primary candidate Rauner
          * Veterans voice opinions about future of Oak Ridge war memorial site
          * 85,000 temporary driver's licenses issued to immigrants
          * Proposed Illinois legislation would ban powdered alcohol


          * Employers get creative to find skilled workers
          * Idea to tax college savings plans draws fire
          * Storm system moving into Central Illinois; some snow expected
          * Crime blotter 1/26/15
          * SIC to offer virtual training for miners
          * Flick: Lucca, Beningo's ... Mother Murphy's
          * Neighborhood watch: Crimes of the week
          * Off the beat: Hotshots has a new metro-east location
          * Erickson: Rauner can't cut his way out of state's financial mess
          * Immigrant driver's licenses top 85,000


          * Former COD trustee: Breuder was offered $2 million buyout in 2009
          * Neighbors mourn woman killed in Barrington-area fire
          * Heroin recovery treatment 'a partnership, a collaboration,' counselors say
          * Families warm to ice carving demonstrations in downtown Wheaton
          * Man shot while walking along Elgin street

          * Rep. Schakowsky Introduces Bill to Impose ...
          * Rep. Jan Schakowsky Statement in Support o...
          * Rep. Jan Schakowsky Statement in Oppositio...
          * House votes to undo Obama immigration acti...
          * Rep. Schakowsky Introduces Bill to Establi...
          * Schakowsky Introduces the Public Option De...
          * Rep. Jan Schakowsky Statement on Vote Agai...
          * Rep. Jan Schakowsky Statement Against the ...
          * Renewed Voting Rights effort urged - San D...
          * Rep. Jan Schakowsky Statement on Martin Lu...

          * Feinstein, Durbin, Gillibrand Applaud New ......
          * GOP drops ‘civil rights and human rights’ ......
          * Obama Endorses Emanuel in Forthcoming Radi......
          * Senate Subcommittee Nixes ‘Civil Rights an......

          * Why are Republicans attempting to thread t......
          * 'Likud politicians instructed to emphasize......
          * Playing politics with climate change in th......
          * Ex-Obama aide says president not tough eno......

          * John Dillon: 2015: The more things change.
          * Sunday morning in Florida.
          * Mailer In the 6th Ward Aldermanic Race
          * State Lawmaker Proposes Red Light Camera Ban
          * We’ve moved!
          * In The Lyons Of Fire
          * BGA Backs New State Disclosure Effort
          * Budget Crisis Task Force Examines Illinois’ Debt Woes
          * To Cut Costs, Suburbs Eye Police Dept. Merger
          * State’s High Court Hears IG’s Case


          * Rauner announces “Turnaround Team” - Stellar team to help turn Illinois around
          * Commerce Department to Review Proposals for Enterprise Zones - Program Promotes Job Growth in Communities Across the State
          * Governor Rauner signs Executive Order for Minority and Veteran Empowerment
          * Governor Rauner Announces Second Round of Appointments
          * Representative Duckworth, US Army Iraq Veteran Honored With The Abraham Lincoln Veteran Champion Award




              Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller