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* Banks closer to the brink
Local banks’ cushion to absorb losses is shrinking fast, pushing a growing number to the point where they must raise additional capital or face the prospect of failure.
At the end of 2008, 16 local banks had bad loans on their books that equaled or exceeded their loan reserves plus their equity, up from just three banks last spring, according to Virginia-based data provider SNL Financial. Many more were in an only slightly less precarious position, including Broadway Bank, owned by the family of Illinois Treasurer Alexi Giannoulias.
* Ex-Rezko partner bankrupt
His creditors are a “who’s who” of Rezko’s world, including:
• • A company owned by Nadhmi Auchi, the Iraq-born billionaire who took control of 62 acres in the South Loop that Rezko and Mahru hoped to develop.
• • Joseph Cacciatore, a lawyer and developer who says he’s owed $5 million from the South Loop project.
• • John Thomas, a developer and FBI mole who helped authorities document the repeated visits former Gov. Rod Blagojevich and President Obama made to the offices where Rezko and Mahru ran their Rezmar Corp.
• • Fortunee Massuda, a podiatrist who invested millions in Rezmar projects.
* New Medicaid income limits help disabled stay on the job
* Homeless student numbers on the rise
Across the Chicago suburbs, a 67 percent increase in homeless students during the two years that ended in June reflects a faltering economy. Some districts are reporting their first homeless students. In Chicago, the schools expect to top last year’s record number of 10,642 homeless students.
* Homeless kids lack school to call home
* Going for the gold: Does Chicago’s transportation system stack up?
* RTA Chair Not Asking State to Solve Revenue Shortfall
Illinois lawmakers last year voted to raise some sales and real estate taxes to help balance the books at the Chicago Transit Authority, Metra and Pace. Because of the economic slump, those tax revenues are coming up short. But don’t expect transit officials to lobby Springfield for another bailout.
REILLY: The state couldn’t help us, and we’re not about to ask the state to help us.
REILLY: The legislature did very well by us, and it’s our job to get through these tough times.
* Mass-transit ‘doomsday’ looms yet again
The total estimated CTA shortfall — $213 million — dwarfs the $158 million deficit the CTA faced in its 2008 budget until state lawmakers and Chicago aldermen raised taxes dedicated to transit in 2008, averting a partial shutdown of the agency.
* Tax Drop Means Transit Trouble
* Metra sees record ridership for 2008
* Midwestern SEIU official resigns
A high-ranking Midwest officer of the Service Employees International Union, who had been serving as trustee of a financially troubled local, has resigned after being accused of billing the labor organization for $9,000 in personal expenses.
The Chicago-based Byron Hobbs, who also sat on the union’s national board, is the latest of several SEIU officials to lose their positions or otherwise come under scrutiny for alleged financial improprieties. Among them is Tyrone Freeman, former president of the union’s largest California local, who is the target of a federal criminal investigation.
Hobbs could not be reached for comment.
He was executive vice president of the SEIU’s 90,000-member Illinois-Indiana healthcare local, and was overseeing a St. Louis chapter that the union had placed in trusteeship.
* Ex-Ald. Troutman to be sentenced today
* Preckwinkle poised to challenge Stroger
With the exception of U.S. Rep. Jesse Jackson Jr., Chicago’s black political class monolithically backed Stroger. Now Preckwinkle poses a potential dagger to the heart of Stroger’s electability. She could vanquish the racial conundrum that black voters are compelled to support tired and incompetent black officials in order to “keep the seat.”
Preckwinkle, who has already pulled in backers such as Cook County Commissioner Jerry “Iceman” Butler and 5th Ward Ald. Leslie Hairston, is in heavy meeting mode. She has already buttonholed “40 or 50″ pols, she says, including 20 aldermen, county commissioners in Chicago and suburban townships. Preckwinkle, who vows to pitch every committeeman in the county by June, has hired campaign consultants and is spending 25 to 30 hours a week dialing for dollars. She’s starting from scratch.
* 26-year-old chairman plots Cook GOP rebirth
* Chicago Suburban Democrats Throw Homeless Man off Ballot
* Two independents kicked off Kankakee mayoral ballot
By identical 3-0 votes Friday afternoon, the Kankakee Electoral Commission knocked both independent mayoral candidates off of the April 7 ballot.
Candidates Nickey Yates Sr. and Dexter Thompson both said they are considering taking their cases to the Kankakee County Circuit Court to seek reversal of the city commission’s decisions.
Yates, a political unknown in 2005, became the Democratic primary nominee and ran a surprisingly close race against Mayor Don Green as he won his fourth four-year term.
“Dogs bark and cats meow,” Yates said after the approximate 25-minute hearing. “You can’t make a dog meow. This was the decision I expected. They already had their minds made up.”
* Time to hang it up: New cell fine may not help
* Pedestrian deaths in Chicago are up despite safety measures
Fifty-six pedestrian fatalities were logged last year—up from 49 deaths in 2007 and 48 deaths in 2006. Chicago Department of Transportation spokesman Brian Steele said the agency is reviewing the reasons behind the uptick but said in certain cases, problems with pavement markings, faulty signage and construction projects may be to blame.
posted by Mike Murray
Tuesday, Feb 17, 09 @ 8:37 am
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Not surprisingly, Reilly has a realistic outlook. They got their money from the state last year, now they have to live with it.
Comment by wordslinger Tuesday, Feb 17, 09 @ 9:00 am
Why don’t you add some commentary on the article regarding Alexi’s bank? Alexi ran and won based the success of his family’s bank. If it fails, that is significant. Also, why don’t you post something regarding the front page chicago reader article about Alexi’s million dollar loan to that old woman?
Comment by FDIC Tuesday, Feb 17, 09 @ 9:02 am
Looks like Metra is once again a victim of its own success.
Comment by Six Degrees of Separation Tuesday, Feb 17, 09 @ 9:08 am
Clayton Harris is announcing an exploratory committee for the 2010 Senate seat on his facebook page?
Comment by What the? Tuesday, Feb 17, 09 @ 9:21 am
I know in OH, there was a (maybe Federal) judge who allowed the homelss to vote by registering their residences at public parks. COuld get interesting. Perhaps Mr. Forte should have registered at the Oak park Cemetary.
Comment by Wumpus Tuesday, Feb 17, 09 @ 9:36 am
Re ex Rezko partner Dan Mahru, the iceman melteth.
Comment by Amy Tuesday, Feb 17, 09 @ 10:08 am
Just to add to the “Preckwinkle poised to challenge Stroger” article, I have heard some talk around Springfield that Mayor Daley has given Preckwinkle his blessing against Stroger because he and Preckwinkle have an understanding that Preckwinkle will not be a primary threat to Daley in the future. Again this is just a rumor, but it would partially explain Preckwinkle’s very strong support among Chi Town Pols.
Comment by Mike Murray Tuesday, Feb 17, 09 @ 12:36 pm
All due respect to the Alderman, MM, I think I could pull the words “Preckwinkle will not be a primary threat to Daley” out of your post, and it would be factual without qualifiers.
Comment by JonShibleyFan Tuesday, Feb 17, 09 @ 3:13 pm
JonShibleyFan
- I think I could pull the words “Preckwinkle will not be a primary threat to Daley” out of your post, and it would be factual without qualifiers. -
What do you mean exactly? What I was trying to say was that Preckwinkle promised not to run for mayor ever against Daley in exchange for Daley’s support behind the scenes.
Are you saying that is not factual, or that it is not needed in the post, because I thought it was the meat and potatoes of my post.
Comment by Mike Murray Tuesday, Feb 17, 09 @ 3:27 pm
Sorry. What I meant was that phrase would stand on its own, not that it ought to be stricken from your post.
I wasn’t attacking your post or doubting that you are getting rumors from good sources.
I was simply saying that I doubt that Preckwinkle would be a threat to Daley at all. She’s a fine alderman and she’s smart. But she doesn’t have the sort of political or fund raising apparatus that would worry even a weakened mayor Daley.
If anything, I could see his tacit approval because Stroger is a political drag and he’s not exactly president of the Forrest Claypool fan club.
Comment by JonShibleyFan Tuesday, Feb 17, 09 @ 3:54 pm
ShibleyFan
LOL. No worries. I think you are right, but that is just what I heard, so I threw it in there
Comment by Mike Murray Tuesday, Feb 17, 09 @ 3:58 pm
It appears that the political movers and shakers in Cook County have written off Todd Stroger as an empty suit and a lost cause with no chance chance of being reelected in 2010. The only possible way for power brokers to preserve access to Cook County jobs and contracts is to dump Stroger ASAP.
Comment by Captain America Tuesday, Feb 17, 09 @ 4:54 pm
Yes, it appears that John Daley not supporting Stroger’s borrowing plan showed the cracks in the Daley-Stroger alliance. I heard Preckwinckle met with Rich Daley. If true, at worst she would have received an assurance he wouldn’t campaign vigorously for Stroger, at best he told her he’d send signals it is OK to vote for her. In return she probably agreed to support his brother on the Cook Board and to not criticize the Daleys in the campaign.
If Daley gets her out of the City Council he would also win by appointing a replacement much more compliant than the semi-independent Preckwinckle.
Comment by Independent Tuesday, Feb 17, 09 @ 5:55 pm
Preckwinkle’s candidacy is interesting, simply because I’m not sure what it’s about. Not a Happy Warrior. She makes Todd seem charismatic and friendly.
Comment by wordslinger Tuesday, Feb 17, 09 @ 6:00 pm