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* Usually, when a politician is accused of something, they get hit with big headlines. If they’re cleared, they often just get a tiny story…
A Cook County judge ruled Monday that state Treasurer Alexi Giannoulias did nothing wrong when, in 2002, he approved a $1 million bank loan to an 86-year-old woman described by her family as “feeble-minded.”
That woman, Loren Billings, initially applied for the loan with co-borrowers who have a history of fraud allegations against them, her family said. After Giannoulias raised concerns, they were taken off as co-borrowers and he approved the loan.
Billings, who once ran the city’s Museum of Holography, then gave nearly all the funds to those same people, representing a firm called GnXpert Neural Technologies.
The Billings family said they expected Giannoulias and his family’s Broadway Bank to protect a woman who was in no frame of mind to apply for such a loan, but Judge Sophia Hall ruled Giannoulias and other bank officials did everything they were supposed to do before approving the loan.
There will be an appeal, so this isn’t going away. But the judge’s decision is still very good news for Giannoulias’ future.
posted by Rich Miller
Tuesday, Apr 1, 08 @ 8:41 am
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When this first came out it did not strike me as having any leggs. Glad to see he was cleared. I still say if the family was that concerned about her decision making process the burden was on them to have a guardian appointed, not on Giannoulis to protect her where the family had otherwise failed to do so.
Comment by Ghost Tuesday, Apr 1, 08 @ 9:02 am
What he did was wrong, but I guess it wasn’t illegal. This won’t go away.
What happened raises questions about Giannoulais that courts may be unable to decide. Naturally we give leeway to bankers on these issues, but should we give this kind of leeway to aspiring politicians? What is good enough for a banker, shouldn’t necessarily be good enough for a state leader.
For too long we have sat back and let lawyers dictate laws as though laws are some kind of proof or some kind of truth. Anyone who has studied law knows that the law is the law, and justice is justice. Sometimes we can see one accomplished through the other, and othertimes we do not.
As voters, we need to set higher standards than legal ones. While an act may be legal, or “not illegal”, it doesn’t mean it is OK.
Mr. Giannoulais may pass this off as an error in judgement, but I hope he doesn’t pretend that what he did was right. It wasn’t. He was there to stop someone getting hurt, but he didn’t. This raises questions, doesn’t it?
Comment by VanillaMan Tuesday, Apr 1, 08 @ 9:03 am
It raises questions about what kind of society VM wants to live in where personal reposibility for our own acts can be shunted off and we can blame bankers and business for our or our families poor judgment. In VM world I guess the govt operates as a big brother controlling al of our lives to protect us. I prefer a world where we do not think a private business has some responsibility to protect us, particuarly where her family was perfectly content to let her manage her own affairs. She made a bad decision aout an investment, but it was her money left in her control by her family. But I suppose if you want a nanny state run by big Govt then you can jump on board with VM, who is seeking neither law nor justice by letting a family who supposedly new about the infirmaties of its member off the hook so it can go after a business instead.
Comment by Ghost Tuesday, Apr 1, 08 @ 9:16 am
What he did was wrong, but I guess it wasn’t illegal
That makes a good epitath for Illinois?
I’d like to see an aggressive reporter dig around in the background of that company mentioned above, as well as into the background of the judge making this decision.
Let’s see, we have these co-borrowers with fraud allegations, so take them off the loan, and we’ll make it.
Wouldn’t common sense and rational business practice dictate that such a loan is dead letter on its face?
By taking them off the loan, Giannoulais in effect protected the fraudulent co-borrowers. Billings is on the hook, the co-borrowers are not.
The judge was clearly wrong here, but then, this was Cook County. Where can a person go to get a fair trial agianst a Cook County institution and elected Democrat office holder?
Comment by Bruno Tuesday, Apr 1, 08 @ 9:22 am
Ghost,
You are making a strong ideological case for “caveat emptor,” which is a reasonable tack to take here.
The facts here, OTOH, don’t pass the common sense test. Co-borrowers with records of fraud show up on a loan. A prudent institution nixes the entire loan, end-of-story, find another borrower.
Comment by Bruno Tuesday, Apr 1, 08 @ 9:28 am
The judge was clearly wrong here, but then, this was Cook County. Where can a person go to get a fair trial agianst a Cook County institution and elected Democrat office holder?
My apologies to all concerned. Upon reading it, I find this statement to be over the top, and hereby retract it.
Sorry.
Comment by Bruno Tuesday, Apr 1, 08 @ 9:31 am
What the subprime lenders are doing is legal as well.
Comment by Wumpus Tuesday, Apr 1, 08 @ 9:53 am
Not getting caught in a very loosely regulated industry is not much of an accomplishment!
Comment by Bailey Building & Loan Tuesday, Apr 1, 08 @ 10:07 am
I still say that Alexi may be the state’s only hope for a credible Blago challenge in 2010, assuming that Lisa would hold out for a national position. Maybe a President Obama could clear the way by finding a do-nothing federal job for our
Blago to voluntarily depart into.
So this is a step in the right direction. An Alexi win would also be a step in the right direction towards throwing out all the hacks and revamping all those state agencies that Blago has been so busy ignoring or, worse, destroying. Maybe Alexi could find some competent hacks with brains to run them, at least.
Comment by Cassandra Tuesday, Apr 1, 08 @ 10:14 am
A loosely regulated industry? Give me a break.
Giannoulias followed the rules he was given. If he made a mistake in judgment, he made a mistake. It happens. I’m so sick of people who expect their elected officials to be saints. I have more hope for someone who makes a mistake and learns from it than someone who has never before made a mistake in their life.
And let’s be truthful, the plaintiffs in this case probably wouldn’t have filed suit if Giannoulias wasn’t the treasurer. I’m sure they filed looking for a quick settlement.
Comment by Bill S. Preston, Esq. Tuesday, Apr 1, 08 @ 10:52 am
Apples to oranges, folks. Loan officers are paid to make loans. AG was a loan officer. He’s also a human being, and a young one at that. While perhaps his decision in this isolated case is questionable, it cannot be concluded as representative of the manner in which he operates. Furthermore, one would expect that he’d be more risk-averse as a politican as opposed to a banker.
Comment by The Doc Tuesday, Apr 1, 08 @ 11:08 am
It’s almost impossible to win a lawsuit against a bank for negligence. Winning a lawsuit doesn’t mean he’s “cleared” of a moral lapse or a great error in judgment; it just means that a judge found that he didn’t violate any banking or other laws in making the loan, AS A LOAN OFFICER.
I agree that too much hay was made out of the case to begin with (obviously in order to smear the guy), but since it’s now out there in the public domain, I think that fair questions still remain as to whether using similar judgement (or lack of judgement) in government is desirable or beneficial to the residents of this state. Of course, nobody’s perfect, and a little digging into the pasts of other politicians would like turn up more than a little “dirt,” too.
Comment by Snidely Whiplash Tuesday, Apr 1, 08 @ 11:14 am
Ghost - I don’t know where you think I’d support government intervention concerning this case.
I believe that a banking business should be operated in a manner that considers what is best for it’s clients. Mr. Giannoulais’ bank DID’NT. You don’t need a government to watch Mr. Giannoulais, you just needed someone with a conscience.
What Mr. Giannoulais failed to do was be a good banker. Now he is a state treasurer.
It isn’t a good sign to have a case like this for any state treasurer. If a state treasurer has a banking background, it is preferable to see a record of consciensious client-focused work, not this.
No, it isn’t illegal - but it was wrong.
We all know it was wrong. But some people want to justify his poor work by blaming the situation on others. Yes, we can do that. Yes, the family should have done something to prevent this.
It is too bad that when this situation arose, there wasn’t a loan officer that cared enough to do their job. But it wasn’t illegal.
Sad.
Comment by VanillaMan Tuesday, Apr 1, 08 @ 11:49 am
Cassandra, Lisa Madigan is not going to hold out for a federal position. She’s going to be governor, and a very good one. I hesitate to put such high expectations on her, but let’s face it — the kid’s got it.
Comment by wordslinger Tuesday, Apr 1, 08 @ 11:51 am
VM - Should we all assume that you’ve never had a lapse in judgment before? If Giannoulias were proving himself to be a bad or mediocre public servant, then your argument might be better. But let’s not crucify a promising young guy who, from the stories I’ve read, seems to be the only one accomplishing much of anything in his office, for doing what he was expected to do as a loan officer - make the loan.
Comment by Bill S. Preston, Esq. Tuesday, Apr 1, 08 @ 12:00 pm
wordslinger - Lisa may make a good (and boring) governor, but I would guess that anyone who runs against her will make a strong political family dynasty argument - painting her as a member of the W/Hillary/Daley/Stroger/Jackson/Lipinski/etc crowd. Unless, of course, her dem opponent is Hynes.
Sorry, I know this isn’t a governor thread…
Comment by Bill S. Preston, Esq. Tuesday, Apr 1, 08 @ 12:09 pm
We have hundreds of men and women capable of doing the job Giannoulais has. Becoming an elected official doesn’t make someone above anyone else, especially in a democracy. It doesn’t make them more moral, more intelligent, more ethical or superhuman.
You seemed to be charmed by his youth? Why? Exactly how could someone hold superior judgements WITHOUT experience? What do they base their judgements on - an episode of ‘Oprah’?
Your posting is double-talk. You try to pass off a fiscal disaster he created like he merely purchased single ply toilet tissue instead of double ply. Then you annoint him as something special. He isn’t. He works FOR US!
Mr. Giannoulais is a public servant. He was blessed by enough votes in a campaign so that he could perform the state treasurer’s duties as described in our state constitution for the limited term we have set.
It is time we start demanding that power hungry politicians fulfill their promises while doing the jobs we elected them to.
Either we are in control or they are. Do you civic duty citizen and demand better!
Comment by VanillaMan Tuesday, Apr 1, 08 @ 12:36 pm
Bill S., if by “boring” you mean hard-working, inspired, empathetic, tough and smart, sign me up. I think Illinois could use a “boring” governor right about now.
Comment by wordslinger Tuesday, Apr 1, 08 @ 12:45 pm
heres what I see: the most interesting part of this is AG’s connection to Obama, Alexi is Barck’s guy…Mike Madigan will use this ruling if he must against Alexi should he attempt to wrest the gubenatorial slot away from Lisa…if she wants it… Madigan is on the BO bandwagon now, but would not appear onstage with Alexi at a recent Dem Day at the State Fair…Check out Alexi’s State Board of Election website campaign contribs…writing checks to himself for $800,000…those are the kind of friends to have if you are Barack…just because you are rich and connected doesn’t make you qualified to be Treasurer, indeed, what if this was IL business instead of a private matter?
Comment by Anonymous45 Tuesday, Apr 1, 08 @ 12:49 pm
VM - Fiscal disaster? I think that’s quite the overstatement. And I in no way suggested that Giannoulias is more moral, intelligent, or ethical than the next person. In fact, I was arguing nearly the opposite. While it’s necessary to hold public officials to some high standard, it is unfair to expect them to be saints. And I labeled him as ‘promising’ because he’s met and exceeded the standard that you yourself said the people should hold their elected officials to - “fulfill their promises while doing the jobs we elected them to.” Hybrids, bright start, the hotels. I’m not sure how I could fulfill my civic duty, as you say, and demand more from a treasurer.
WS - That was exactly what I meant by boring. I mean, what would we all have to talk about? Rich would lose his shirt!
Comment by Bill S. Preston, Esq. Tuesday, Apr 1, 08 @ 1:06 pm
Just how “feeble-minded” did this woman appear, or act, when she was obtaining this loan? Was she behaving a bit confused, or was she totally in La-La Land? This seems like asking gun store owners to judge whether or not someone who has just walked into their store is mentally ill, or may become mentally ill.
The family was probably upset because the 86 year old woman’s estate would be on the hook for the loan and it would dig into their inheritance.
Comment by Dirt Guy Tuesday, Apr 1, 08 @ 1:24 pm
===heres what I see: the most interesting part of this is AG’s connection to Obama, Alexi is Barck’s guy…Mike Madigan will use this ruling if he must against Alexi should he attempt to wrest the gubenatorial slot away from Lisa…if she wants it… Madigan is on the BO bandwagon now, but would not appear onstage with Alexi at a recent Dem Day at the State Fair
Madigan did share the stage at the State Fair with Alexi. I was there in incredible heat, yet the Speaker was not sweating. I believe him to be an alien, but that’s another discussion. He also didn’t answer who his favorite Beatle was. As far as I’m aware they aren’t best buddies or anything, but they work together professionally now.
Comment by archpundit Tuesday, Apr 1, 08 @ 1:57 pm
Archpundit: “they work together professionally now” and what that means is? Madigan did not share the stage with Alexi prior to his winning bid for Treasurer. He made a small spectacle of that fact in 2006 unless you were drinking that watered down beer served and it impaired your memory…if I am not mistaken. Madigan was backing another gentleman for the post, and did not take well to Barack’s backing of Giannoulias…Madigan is a different breed than the youngsters pushing their way into Springfield these days with their good looks, coolness, lingo, and bulging campaign coffers…
Comment by Anonymous45 Tuesday, Apr 1, 08 @ 3:55 pm
===Either we are in control or they are.===
They are.
Comment by Bill Tuesday, Apr 1, 08 @ 4:08 pm
Bill shoots, Bill scores!!!
Comment by Snidely Whiplash Tuesday, Apr 1, 08 @ 4:28 pm
Anon45 - Are you new to the state? Speaker vs. Giannoulias is about as old as people who use ‘youngsters’ and ‘lingo’ in the same sentence…
Comment by Bill S. Preston, Esq. Tuesday, Apr 1, 08 @ 4:46 pm
There is an element of truth to both Preston, Esq’s and Dirt Guy’s analysis. (Although I disliked both Bill and Ted’s Big Adventure and Joe Dirt.)
The family is probably having thoughts about an inheritance, the loan was a judgment call and the loan officer is now a high-profile politician who does not need this complication in his life.
GenXpert Neural Technologies?
Aldous Huxley would be proud of that one.
Comment by Touhy Tuesday, Apr 1, 08 @ 4:47 pm
C’mon now Touhy, our adventure was excellent, not big. Big was Pee Wee’s adventure.
Comment by Bill S. Preston, Esq. Tuesday, Apr 1, 08 @ 4:53 pm
If he had denied the loan to 96 year old Roberta McCain he would have had hell to pay.
He should get a pass on this loan.
Comment by True Observer Tuesday, Apr 1, 08 @ 4:59 pm
Sorry, Mr. Preston. I wasn’t really into movies in the 80s. Or now, for that matter.
I apologize to you again due to the fact that there are quite a few Pee-Wees in Springfield and Chicago and won’t make that same titular mistake again.
I’ve got a great closing line here comparing Paul Reubens (both in and out of character) to some of those individuals but I’m in a relatively good mood today.
Comment by Touhy Tuesday, Apr 1, 08 @ 5:30 pm
I am just wondering how many people have control over their elderly parents and how easy or possible is it to tell them they no longer have control over their own possessions. How gaga does your parent have to be before you take action? What if the ‘family’ of this 86 year old woman didn’t consist of a huge supportive family complex but instead of a single person? In hindsight, of course, we can all look back and realize the year, the week, the day that action should have been taken.
There are laws protecting the elderly. Elderly who have no ‘family’, no protectors or those who don’t think that they need protectors. Where are those laws? Does this woman lose her home, her business? Would this law have protected this woman if the loan officer was not now State Treasurer?
Comment by Anon45 Wednesday, Apr 2, 08 @ 12:16 pm