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Gun shop, convicted felon got loans from state treasurer candidate’s bank

Monday, Mar 13, 2006 - Posted by Rich Miller

Greg Hinz has a new column up about Giannoulias. It’s not pretty stuff.

On his campaign Web site, Illinois treasurer hopeful Alexi Giannoulias describes himself as “a banker — a community banker, to be more precise.” It’s an indication that Mr. Giannoulias’ job as vice-president and chief loan officer at Chicago’s Broadway Bank is his main credential in running to become one of the state’s two elected fiscal officers.

I understand why Mr. Giannoulias plays up the credential. “Community” implies little guys struggling to buy three-flats in Edgewater and start up businesses in Uptown — something Mr. Giannoulias says indeed has been accomplished by himself and his father, who founded Broadway Bank in the late 1970s. “Banker” suggests financial savvy, a point the Web site underlines in reporting that Crain’s “has ranked Broadway Bank as the No. 1 bank in Illinois for the past four years based on return on assets.”

Indeed, we did. Good things surely do happen at Mr. Giannoulias’ bank. But there are a few other things voters might want to know before putting a 29-year-old Democrat who never has held government office in charge of investing $7 billion of your money each year.

Like how Broadway Bank financed property used for a gun store so notorious that it was sued by Mayor Richard M. Daley and finally shut down by federal authorities. Or how the bank lent money to a crime figure convicted of running a national prostitution ring to buy land in Florida. Not to mention the Texas lawsuit that contends Mr. Giannoulias and the bank “extorted” a nearly $100,000 loan fee. And the $5,000 campaign donation Mr. Giannoulias returned after revelations that the donor bought a fleet of gambling boats from a group including indicted Washington, D.C., lobbyist Jack Abramoff.

Apparently “community” is an expansive term.

       

26 Comments
  1. - Anon - Monday, Mar 13, 06 @ 11:46 am:

    I find Mr. Giannoulias to be far too young and untested to be holding one of the top two state fiscal offices. He comes accross as a college frat boy with a lot of money. He should have run for a lower before going on. If he ends up wining the primary, I think that Rodongo (not sure if that how she spells her name) will beat him.


  2. - Bill Baar - Monday, Mar 13, 06 @ 11:51 am:

    Like how Broadway Bank financed property used for a gun store so notorious that it was sued by Mayor Richard M. Daley and finally shut down by federal authorities.

    A lot of shooting going on in our community as of late.


  3. - grand old partisan - Monday, Mar 13, 06 @ 11:52 am:

    This could be the start of the first significant embarrassment for Senator Obama. Not that it will really do him that much damage. In fact, it could actually be a good thing for him to be taken down a notch or two right now in order to level out his staggering trajectory.


  4. - The Velvet Hammer - Monday, Mar 13, 06 @ 11:57 am:

    Strikes Again!


  5. - A-non - Monday, Mar 13, 06 @ 12:06 pm:

    I didn’t read the article, but from the exerpts here, it looks like it could go either way.

    “financed property used for a gun store”
    Was this the initial purchase of the gun store, before it was “notorious”? He’s a banker doing a loan for a business. What’s he supposed to do, use a crystal ball to forecast the way the business will be run?

    “lent money to a crime figure…to buy land in Florida”
    Again, the purpose of the laon was to buy land in another state. What’s the inherent crime in that?

    “Texas lawsuit that contends Mr. Giannoulias and the bank “extorted” a nearly $100,000 loan fee”
    I believe the case has not been decided (case pending), so we don’t know if it was really extortion or plaintiff hyperbole.

    “$5,000 campaign donation Mr. Giannoulias returned”
    The key point is he returned it. He can’t control who writes him a check — only return the money if it is tainted, which he did. Unlike some people who claim they will return money and never do.

    I’m not Gianoulis staffer or volunteer. I just think these “facts” should be taken with a grain of salt.


  6. - Rich Miller - Monday, Mar 13, 06 @ 12:10 pm:

    A-non, before you pick something apart, it’s probably best to read the entire article.


  7. - grand old partisan - Monday, Mar 13, 06 @ 12:14 pm:

    A-non - you are right that each one of these “facts” are either inconclusive, or not a huge deal in-and-of itself. But put all of them together, even the way you have with explanations and defenses, and it still will give pause to any fair-minded voter. Especially when you consider that he has no other experience or record that can be examined by the press or public.


  8. - A-non - Monday, Mar 13, 06 @ 12:17 pm:

    Granted, Rich. That “analysis” was mainly for the benefit of those that wouldn’t go out of their way to read the whole article.


  9. - John 3:16 - Monday, Mar 13, 06 @ 12:19 pm:

    I’m trying to decide what is sillier — the Stroger camp’s Claypool commercials or what the Democratic Party and Greg Hinz (who has been after Giannoulias since the Obama endorsement).

    As for Anon 11:46, what is it about Mangieri that makes you think he is “tested” on issues relevant to the State Treasurer? Why are you so convinced when the Daily Herald and the Sun Times think that his financial experience is exactly what the office needs? As for your “too young” assertion — if elected Giannoulias will be exactly the same age that Dan Hynes was when he was elected Comptroller.

    I still haven’t heard anybody argue that Mangieri is better than Giannoulias on the issues (maybe that is because Mangieri keeps promising everyone that he’ll hire someone with financial/investment experience as deputy treasurer — that should reassure us all).


  10. - swede - Monday, Mar 13, 06 @ 12:53 pm:

    The big question I have is why would Senator Obama endorse some young kid who’s financial experience is working at his father’s bank!!! What I have learned is that I certainly am going to take a real close look at Senator Obama’s future political endeavors.


  11. - race is over - Monday, Mar 13, 06 @ 1:08 pm:

    22 point deficit with a week to go. Sorry Madigan and company, but his one is over. The oppo dump will be fodder for the GOP, but voters are not going to hold someone accountable for every single deal the bank made.


  12. - GetALife - Monday, Mar 13, 06 @ 1:16 pm:

    There’s no way that you can say this race is over with 8 days left.. My guess is that banker boy is in big trouble


  13. - Anonymous - Monday, Mar 13, 06 @ 1:17 pm:

    As a stockholder in a community bank what stood out to me was just how risky Broadway’s loan portfolio was. Half of their loans are made out of state!

    They appear to be trying to play like they are one of the big boys. I’m not sure what that means in a potential state treasurer, but it does leave some questions.

    Oh, the quote about the gun store loan is a joke. There is no difference to making a loan to a store and on a piece of property if the money is going to the same person. Banks just want the mortgage on the property because that’s almost always better than on inventory.


  14. - COMMON SENSE - Monday, Mar 13, 06 @ 1:52 pm:

    Community banks are not like Chase Bank or Bank of America….interesting that all these out of state people, who have a ton of banks across the country to choose from, venture to 5900 N Broadway in Chicago????

    I bet there is more to come and this is just the start of a very long stretch for Giannoulias in the next week.

    Can you imagine if Mangieri wins, outspent by over close to 2 million???


  15. - John 3:16 - Monday, Mar 13, 06 @ 2:12 pm:

    I’m just glad that most of the people making the comments on this article aren’t running for treasurer.

    Find me a bank that puts all its eggs in one real estate market and you’ll see a bank that is in real trouble. In fact, you won’t find a top performing bank that doesn’t invest in several different markets. You guys have to be kidding me! Maybe it is comments like these that make Madigan confident that he can get enough votes for a guy with NO financial / investment expertise.

    Swede — I don’t see why you seriously question Obama’s endorsement when the Daily Herald and Sun Times reached the same conclusion — that the Office of State Treasurer needs someone with financial and investment expertise. You should question why the DPI is going with Mangieri (who is a perpetual candidate — in the last four years has run for 1. Lt. Governor, 2. State Senator, 3. State’s Attorney, 4. State Treasurer — that couldn’t even carry his own district in the State Senate race and doesn’t even have 20% name recognition downstate.)


  16. - SenorAnon. - Monday, Mar 13, 06 @ 2:19 pm:

    “There’s no way that you can say this race is over with 8 days left.. My guess is that banker boy is in big trouble”

    Down ballot. 3-weeks of TV vs none. GOP horserace swallowing up all of the available oxygen.

    The fat lady might not be singing. But she’s in costume in the wings, the lobby lights have dimmed and people are finding their seats…


  17. - Connemara - Monday, Mar 13, 06 @ 2:43 pm:

    I think that Speaker Madigan dropped the ball in this race, Mangieri was a no show at an SEIU/Northwest Side Democrats rally on Friday and from what I hear the regular Dems could care less about this race. As far as all the support that Mr. Giannoulias is getting let’s all be real, it’s his daddys money that is winning him all the support. If only Speaker Madigan had some commercials with Mangieri and all his kids (like the Brady Bunch) I think He could have picked up a lot of support. It’s not too late for Mangieri but he better get his house in order.


  18. - John 3:16 - Monday, Mar 13, 06 @ 2:57 pm:

    Connemara –

    Are you suggesting Giannoulias money won the newspaper endorsements?

    You are right about Madigan dropping the ball — he slated a horrible candidate. It’s too bad the Giannoulias camp didn’t decide to go negative on him like Dale Risinger did in 2002.

    And, by the way, even if you subtract his family’s contributions, Giannoulias is outraising Mangieri (and HIS “daddy’s” money).


  19. - Mr Anon. - Monday, Mar 13, 06 @ 3:31 pm:

    The Crain’s piece really nails Alexander. Gamblers and a Gun Shop. Wonder what other shady characters — besides the pols — are getting sweet deals from his (opps Daddy’s bank)?
    More important than a rally, SEIU leaders are already phone banking got Mangieri.
    Sounds like Alexander’s allies are flailing.


  20. - confused dem - Monday, Mar 13, 06 @ 4:47 pm:

    what do people see in alexi g? And please, everyone working for him, don’t send me something from his bio and talking points.


  21. - HeKnowsBarack - Monday, Mar 13, 06 @ 5:09 pm:

    TO:Confused
    FROM: HeKnowsBarack
    RE:What do dey see
    Kevin Flynn can’t be wrong. He’s given $2,500 of the Emeral Casino Cash to Alexander.
    Why do you need any more info


  22. - Cornbleet - Monday, Mar 13, 06 @ 5:24 pm:

    John 3:16, Why do you call yourself that?

    What a novel idea, a banker running for the State Banker’s job….who else would be more qualified?


  23. - John 3:16 - Monday, Mar 13, 06 @ 5:30 pm:

    Confused dem –

    Here is what I see in Alexi:

    (1) A real Democrat. Mangieri is to the right on so many issues that it is a joke. His stand on abortion (and his flip-flop) is well documented, but he also opposes the assault weapons ban. And for those that argue none of these issues come up in the State Treasurer’s Office, there is the issue of affirmative action, which Mangieri is also on record opposing. At a time when minority businesses are having problems securing loans and Republicans are taking legal action against Disadvantaged Business Enterprise Programs, it is a tragedy to have a Democrat running for a position that controls economic incentive programs be on record against affirmative action. Alexi is right on the issues, and he has a history of backing progressive Democrats.

    (2) Someone with guts. Madigan and the DPI cleared the way for an inferior candidate, and only Giannoulias stood up to offer Democratic primary voters a choice — and an opportunity for someone who could win in November.

    (3) A brighter future for this party. Giannoulias’ youth has a couple of upsides — he hasn’t been corrupted by business as usual in this state, and he’s going to be around for a long time. Fitzerald has a lot of work left in this state, and if anyone out there thinks that he is not going to reach out and touch the power brokers in Democratic circles, ignorance is bliss.


  24. - John 3:16 - Monday, Mar 13, 06 @ 5:34 pm:

    Cornbleet –

    The Illinois version of the bible has at John 3:16:

    For Michael Madigan so loved the world, that he gave his only adopted daughter, that whosoever believeth in her should not perish, but have everlasting life.


  25. - HeKnowsBarack - Monday, Mar 13, 06 @ 6:03 pm:

    Which Fitzgerald:
    the one dropping supboenas on Alexander’s lan recipients or
    the banker who moved to Virginia to be close to the Little League games.
    Just three day to Alexander’s BIG THREE ZERO so he won’t even be yong anymore


  26. - Fearless Freep - Monday, Mar 13, 06 @ 8:14 pm:

    Both Mangieri and Alexi whatever-the-hell his name is are WEAKLINGS. The Treasurer’s office will not return to the same people who gave us Pat Quinn and Jerry Cosentino.


Sorry, comments for this post are now closed.


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