* Crain’s reports that Alexi Giannoulias’ family bank is now, by one measure, the second-weakest bank of its size in the Chicago area. And that could be a serious landmine during next year’s US Senate campaign…
Without a substantial injection of new equity capital, Broadway could be fighting for survival and facing regulatory action during the heat of Mr. Giannoulias’ Senate race next year. On his Web site, the Democrat touts his experience as a former banker at Broadway.
The reason? The bank’s “high-octane growth strategy collided with the housing meltdown,” and that trouble was only made worse when the owning family took a gigantic dividend…
The Giannouliases, who own 100% of parent Broadway Bancorp Inc., appear to have exacerbated their predicament by vacuuming $70 million in dividends from the holding company in 2007 and 2008, double the bank’s profits during that period. The next-highest dividend total for a local bank Broadway’s size during that period was $39 million. Most banks in the category paid less than $15 million.
“Those (dividends) are appalling,” says Bert Ely, a Virginia-based banking consultant. “They basically were sucking capital out.”
* Speaking of the Senate race, the Democratic Senate Campaign committee just sent out a press release claiming that Republican US Senate candidate Mark Kirk omitted a key item from a bullet-point list of his recent voting record. The DSCC has a July 20th screen capture from Kirk’s old campaign website which includes in his voting record his “Democratic Position” on the so-called Cap & Trade issue, while a flier Kirk distributed in a recent Downstate swing left that out. Click here to see the original list from July, and click here for the more recent Downstate flier.
* Meanwhile, Congressman Danny Davis made it official Sunday evening. He’s running for Cook County Board President…
The congressman says he wants a higher standard of care in county health facilities, and he says he wants to streamline county operations and, hopefully, cut taxes.
However, Davis refused to say whether he would have favored the recent increase in the county sales tax.
State Sen. Rickey Hendon, Reps. Annazette Collins and LaShawn Ford and others, including Darlena Williams-Burnett, business owner Jim Ascot and pastor Marshall Hatch.
* And our political quote of the day goes to Illinois GOP chairman Pat Brady…
Illinois Republican Party Chairman Pat Brady said it is appropriate for Obama to address the nation’s school children – but not to encourage them to help him.
“At first blush, this is something you would see at a far-left regime like Cuba or North Korea,” said Brady, of St. Charles. “Oppressive regimes do this to their children.”
* Related…
* Hynes, Quinn march with unions, but who will get backing? Sources in SEIU and in Quinn’s camp say the union is leaning toward Quinn. That endorsement could translate into a six-figure infusion into Quinn’s primary battle.
* Quinn vs. Hynes: Who’s winning tax spat?
* Hynes will use ‘different‘ strategy, hasn’t said how
* Judy Baar Topinka’s back in the limelight - ‘I can’t sit too long,’ ex-state treasurer says
* Candidates face West Side, South Side debate
* Another Evanstonian joins race to succeed Hamos: Robyn Gabel, executive director of the Illinois Maternal & Child health Coalition, confirmed… she was very serious about running for the seat and planned to file shortly to run in next February’s Democratic primary.
* Get ready for some intense action in Illinois governor race
* Crowded, boisterous field seeks Illinois governor’s chair, Senate seat
* Dart ‘loves’ his job, to run again for Cook Co. sheriff
- State Sen. Clay Davis - Tuesday, Sep 8, 09 @ 11:46 am:
Anyone else see the anti-Sen. Steans fliers in Andersonville and the Loop this morning?
- bored now - Tuesday, Sep 8, 09 @ 11:56 am:
so davis has stopped circulating petitions for his congressional seat?
- Pat collins - Tuesday, Sep 8, 09 @ 12:01 pm:
State Sen. Rickey Hendon, Reps. Annazette Collins and LaShawn Ford and others, including Darlena Williams-Burnett, business owner Jim Ascot and pastor Marshall Hatch.
I assume they are thinking of running for Congress in Davis’s district?
- Otto Von B - Tuesday, Sep 8, 09 @ 12:04 pm:
Danny is finally in. Punks jump up to get knocked down. I think all the hemming and hawing will damage his credibility against Toni (the actual and perceived frontrunner)
- Rich Miller - Tuesday, Sep 8, 09 @ 12:12 pm:
===I assume they are thinking of running for Congress in Davis’s district? ===
Yep. Updated.
I lost my Intertube service for a bit and forgot to complete that thought. Thanks.
- CircularFiringSquad - Tuesday, Sep 8, 09 @ 12:13 pm:
Illinois Republican Party Chairman Pat Brady said it is appropriate for Obama to address the nation’s school children – but not to encourage them to help him.
“At first blush, this is something you would see at a far-left regime like Cuba or North Korea,” said Brady, of St. Charles. “Oppressive regimes do this to their children.”
It now seems clear that “Gags” Brady decision to suppress candidates’ speeches at the fair was rooted in the notion that Republicans can say the dumbest things….now he needs to muffle himself
- Just sayin - Tuesday, Sep 8, 09 @ 12:19 pm:
In other political news, new State GOP Chairman Pat Brady said he will set a new standard for embarrassing behavior by a State GOP Chairman.
“I’ve compared our U.S. Administration to the murderous regimes of Cuba and North Korea. I think it’s really resonating well with voters. It’s probably time for me to play the Hitler card,” Brady added.
Okay, that’s a parody - for now.
- Niles Township - Tuesday, Sep 8, 09 @ 12:20 pm:
Ricky Hendon in Congress, oh-no.
Quote of the week from The Southern Illinoisian article on Dan Hynes: “After reading the prepared remarks, Hynes answered a handful of questions from reporters and then stiffly walked off stage and was ushered by a handler into a holding room.”
- VanillaMan - Tuesday, Sep 8, 09 @ 12:22 pm:
On Giannoulais’ situation…
In order to make this a stumbling block for Alexi, Kirk would have to summarize it into a memorable, easily understood sentence. Otherwise, it becomes just another mind-numbing negative campaign comment that can be easily forgotten and doesn’t have any punch.
“Possible bankrupsy may be an option for the Giannoulais family bank - but Illinois needs a senator who knows that people come before profits.”
…or something like that.
- VanillaMan - Tuesday, Sep 8, 09 @ 12:30 pm:
Note to Pat Brady - don’t compare the President to oppressive regimes, because no one believes we are experiencing an oppressive regime right now.
Compliment the President at all times, then remind listeners how pleased you are that his Administration toned down what could have been misinterpreted as an attempt to indoctrinate American schoolchildren. Then remind listeners how you hope Congress wouldn’t launch investigations into the President’s address to children, as Democrats did the last time the President addressed our nation’s children.
And for heaven’s sake, start watching how Dick Durbin uses these techniques!
- Reality Check - Tuesday, Sep 8, 09 @ 12:31 pm:
I look forward to Pat Brady also saying that the back-to-school speeches by Ronald Reagan and George H.W. Bush were fascist indoctrination.
Freaking hypocrites.
- You Go Boy - Tuesday, Sep 8, 09 @ 12:37 pm:
Advice to JBT….”SIT, by all means, SIT!
- Ghost - Tuesday, Sep 8, 09 @ 12:38 pm:
VM, I would go with,… With Giannoulais, family comes first, so when the family bank began to fall towards bankruptcy, the family decided to put itself before its depositors and pulled out 70 million for itself.
Now we just need Brady to support putting nuclear weapons in taiwan and pushing Keys for LT Gov to put the GOP trifecta on stage.
- Hon. Cranial Lamb - Tuesday, Sep 8, 09 @ 12:41 pm:
The best thing that could happen to the citizens of Illinois would be Rickey Hendon going to Congress. He can do far less damage there.
- KeepSmiling - Tuesday, Sep 8, 09 @ 12:45 pm:
Regarding Danny Davis -
I happened upon WBBM’s At Issue Sunday night, and Dorothy Brown was being interviewed. http://www.wbbm780.com/pages/213.php?
I thought she did a pretty good job and Cook County couldn’t certainly use her MBA background. At any rate, host Craig Dellimore brought up Danny Davis’ previously expressed concern for the number of African American candidates pursuing the County Board Chairmanship as being problematic in that it could fracture the black vote. Dorothy Brown responded that she thinks the (political) race is about dollars and cents and who can get the job done. Then she noted that she finds it “interesting” that Davis still got into the race, if he has that concern. She said that Davis is circulating petitions for both races - Congress and Cook County Board - and that you can “read into that” what you’d like. So is Danny Davis in it to win it, or what?
- KeepSmiling - Tuesday, Sep 8, 09 @ 12:46 pm:
sorry - could, not couldn’t, in second paragraph
- Shore - Tuesday, Sep 8, 09 @ 12:59 pm:
im spammed again.
- Red Hawk - Tuesday, Sep 8, 09 @ 1:00 pm:
I’ve also seen mentions of former Davis COS Richard Boykin as a potential candidate for the seat. Would be interesting if that relationship is strong enough to get an endorsement from Davis or if he’ll hang back and worry more about collecting allies for his own upcoming contest.
- Hank - Tuesday, Sep 8, 09 @ 1:02 pm:
Something is looming large for ole Alexi as the national dems sure seem to be on an “anybody but Alexi” push
Also, didn’t Pat Brady drive “Nellybelle” in the old Roy Rogers series. He was kind of a klutz if I recall
- Anonymous - Tuesday, Sep 8, 09 @ 1:08 pm:
Davis is still collecting signatures for reelection. This is what Danny does. I will not believe he is “really” running for President until he files his petitions. Not a moment sooner.
- cassandra - Tuesday, Sep 8, 09 @ 1:16 pm:
I think the family bank tanking could be a serious problem for Alexi. Didn’t he use his family bank experience as an important part of his resume? Aren’t Americans expected to be still generally unhappy with the bailout of the financial industry ,the deficit, the state of the economy, and probably, with Alexi’s pal Obama during the midterms. No wonder the White House is reportedly casting around for other candidates for the Ill. Senate seat.
- VanillaMan - Tuesday, Sep 8, 09 @ 1:23 pm:
With Giannoulais, family comes first, so when the family bank began to fall towards bankruptcy, the family decided to put itself before its depositors and pulled out 70 million for itself.
I like that. Very clever!
Especially the “With Giannoulais, family came first…” Very catchy!
- Hon. Cranial Lamb - Tuesday, Sep 8, 09 @ 1:36 pm:
Agree with the points about Giannoulias, I think he might be the first ever US Senate candidate with $3 M 6 month advantage to be an underdog.
Hoffman is going to knock him out I predict, but he is going to have to be careful with how he goes after Cherlye Jackson. I hear her fund-raising is very unimpressive so far.
- indupage - Tuesday, Sep 8, 09 @ 1:46 pm:
Question for the discussion…how politically embarrassing would it be for Obama if Alexi wasn’t able to capture the nomination?
- Ahem...The REAL Anonymous - Tuesday, Sep 8, 09 @ 1:47 pm:
=======
Advice to JBT….”SIT, by all means, SIT!
=======
Bad, BAD advice.
You go, Girl!!!!!!!
- Rich Miller - Tuesday, Sep 8, 09 @ 1:48 pm:
indupage, I’m not sure that’s a valid question, considering that Obama actively tried to get somebody else into that race.
- Fed up - Tuesday, Sep 8, 09 @ 2:24 pm:
Reality check when George Bush spoke to students the Dem controlled congress held congressional hearings on the matter and forced the education secretary to testify. I some how dont think the Dems find it offensive this time no hearings are being demanded by the dems this time so I guess they are the Freaking hypocrites.
- 10th Indy - Tuesday, Sep 8, 09 @ 2:26 pm:
PI is reporting that SEIU and other progressives are planning a big bankers protest at the American Bankers Association in October. The Press release asks “What have these bankers done to deserve the billions in bonuses so many of them received?” Do you think they’ll ask Alexi about the $70 million Broadway bank dividend?
http://progressillinois.com/2009/9/8/progressives-major-banking-protest
- Fed up - Tuesday, Sep 8, 09 @ 2:27 pm:
No way the Obama administration lets the Alexi bank get taken over. FDIC will have a hands off policy. It would be interesting to see if stronger banks have already been taken over.
- Vote Quimby! - Tuesday, Sep 8, 09 @ 2:53 pm:
Please remind me exactly what Alexi has accomplished to make me even consider him for Senator? Being downstate, all I know about him now is he has Greek heritage, sends out letters to Bright Start participants with his name in 26-point type (got the latest on Friday), he play(ed) basketball with Barack Obama and his family owns a bank which may or may not be solvent….
- Rich Miller - Tuesday, Sep 8, 09 @ 2:56 pm:
===Being downstate, all I know about him now is he has Greek heritage===
Well, then you’re being deliberately ignorant or dishonest.
- wordslinger - Tuesday, Sep 8, 09 @ 3:05 pm:
The bank really hurts Alexi. What does he bring to the party, anyway? Not Obama — he very publicly wanted Lisa.
I remember when I was a kid, every classroom had a portrait of the president. Your respected the office, even if you didn’t particularly like the occupant. I still believe that.
Just as with Obama, I’m sure professional whiners and haters would have objected to W or Reagan speaking to kids. Or Lincoln, for that matter.
Cuba? North Korea? Indoctrinate? What a wack job.
- Ghost - Tuesday, Sep 8, 09 @ 3:29 pm:
Word, as I recall Bush back in 1991 spoke to the school kids as well; and I remeber Regan speeches being broadcast into the school.
Regan and Pink Floyd, spreading their anti-wall socialist propoganda to poor impressionable minds.
- VanillaMan - Tuesday, Sep 8, 09 @ 3:35 pm:
I remember when I was a kid, every classroom had a portrait of the president.
Yeah! I remember that! On the day Nixon was inaugurated, Miss Jane told the class we were getting a new president. She held up the pipe cleaner bust we made of Lyndon Johnson and disassembled it to form Richard Nixon. We used the same nose. When Ford became president, we did his portrait in Lite Brites. We used the yellow pins for teeth.
For Carter, we used a block of wood and Elmer glued peanuts on it to form the new president’s head. For our school pictures that year, each of us had to pose with it under a banner that read, “This time, why not the peanuttiest?”
Yeah. Nothing wrong with having a president’s portrait in classrooms. For our current president, I would draw it on a teleprompter.
- wordslinger - Tuesday, Sep 8, 09 @ 3:44 pm:
VMan, like I said, professional whiners and haters will always have a reason to ply their craft.
- VanillaMan - Tuesday, Sep 8, 09 @ 3:57 pm:
You sound full of hate when you whine like that.
- wordslinger - Tuesday, Sep 8, 09 @ 4:04 pm:
Not me, brother. I realize how fortunate I am to have been born in the United States.
- hisgirlfriday - Tuesday, Sep 8, 09 @ 4:11 pm:
Alexi could be in for a much more difficult fight if the FDIC seizes Broadway. All Americans, not just Republicans, are fed up with the banksters that have taken this country’s economy down the tubes and to have the state treasurer so closely associated with an institution in financial ruin would call into question all sort of things about his performance in that job as well.
I like Alexi from the times I’ve met him and had no qualms about him as my senator until reading this, but this revelation about Broadway upsets me. I’ll still vote for him to keep the Democrats in the Senate in the majority, but do I think my Downstate swing-voting parents will? Maybe not.
- hisgirlfriday - Tuesday, Sep 8, 09 @ 4:17 pm:
As for Danny Davis… I haven’t forgotten that moonie stunt and I won’t ever vote for him because of it, even if it’s a choice between him and Stroger. Sorry.
- Flipside - Tuesday, Sep 8, 09 @ 4:38 pm:
Interesting that Brady cited non-white leaders in his pathetic quote. He’s as ignorant as those walking around at these tea parties. I guess the right-wing hate mongers would rather follow Glen Beck than reality.
- ringside - Tuesday, Sep 8, 09 @ 4:48 pm:
Careful. Pat Brady will start a fist fight with you. He’s done it before.
- dupage dan - Tuesday, Sep 8, 09 @ 4:58 pm:
So, VM is a professional whiner? Is there much money in that? How do I get in on that? Sounds like fun.
- Judgment Day Is On The Way - Tuesday, Sep 8, 09 @ 5:49 pm:
“No way the Obama administration lets the Alexi bank get taken over. FDIC will have a hands off policy. It would be interesting to see if stronger banks have already been taken over.”
Not a chance that happens. That would be absolute political suicide for the FDIC. Those folks are already under the hot lights, and with all the regional banks and with their existing commercial real estate loans going into the toilet (or already there, just not realized) - no way Broadway Bank gets a pass. Particularly not with the family pulling $70 mil out of the bank in the last 2 years (that’s akin to the kiss of death with the FDIC folks).
The big story around August 27-28, 2009 was that there’s very, very serious talk that the US banking system will lose some 1,000 regional banking institutions over the next two years, primarily over vastly increasing delinquent and underwater commercial, development, and condominium real estate holdings.
And anybody who thinks that the Feds won’t try and ‘claw back’ all, or a large portion of that special $70 mil in dividends is smoking something. Note what is happening right now to Angelo Mozilo, ex Countrywide CEO - and remember that “The Hunt For Angie” all started back in 2007.
If there’s realistically going to be in the neighborhood of 1,000 regional bank failures over the next 2 years, Alexi’s chances in November, 2010 aren’t looking too good.
- Rob_N - Tuesday, Sep 8, 09 @ 6:30 pm:
Gawd… Why are Republicans such whiners?!
“At first blush, this is something you would see at a far-left regime like Cuba or North Korea,” said Brady, of St. Charles. “Oppressive regimes do this to their children.”
…I wonder if he thought the same of Reagan, Bush I, Bush II, etc.
And their speeches (Bush 41’s in particular) were a heckuvalot more overt in encouraging support for not just the president but the president’s political stands. Telling kids to stay in school (unless they might have the flu) and to make lemonade from lemons isn’t oppressive.
Brady needs to step up his myopic spin before voters tune him out.
- Bobs yer - Tuesday, Sep 8, 09 @ 6:57 pm:
My guess is that AG has a chunk of that stock, and received his share of the ‘dividends’. Family business, right?
- indupage - Tuesday, Sep 8, 09 @ 8:29 pm:
Rich - I absolutely think it’s a valid question. Alexi leveraged his friendship with Obama to win statewide office. It was that relationship which conferred political credibility on him as an unknown and newcomer. To say that Obama spoke with other candidates is a disqualifier to the issue is to not look at the whole picture. Obama spoke to Lisa Madigan…and she’s running for re-election as AG. Alexi was to be annointed and assume Obama’s mantle in Illinois. I think it would be a major blow to his image (ie, if he can’t be a Kingmaker in his own state, how powerful is he).
- Rich Miller - Tuesday, Sep 8, 09 @ 9:08 pm:
===Alexi was to be annointed and assume Obama’s mantle in Illinois.===
Perhaps in your mind, and perhaps in Alexi’s mind, but I haven’t yet seen evidence that it’s in the preznit’s mind. And until I do, I don’t think any Alexi loss is an Obama loss.
You’re stretching.
- Emily Booth - Tuesday, Sep 8, 09 @ 9:26 pm:
I already pay an income tax, a 10% sales tax on most goods, taxes on my utilities, taxes at the pump and taxes when I travel. Why do I need to pay taxes when I see my doctor, hairstylist, manicurist and dry cleaner?
- Emily Booth - Tuesday, Sep 8, 09 @ 9:29 pm:
Ooops. Wrong thread!
- hisgirlfriday - Tuesday, Sep 8, 09 @ 9:55 pm:
If Alexi had lost the primary or in the general when Obama was stumping for him against Madigan’s candidate in the treasurer’s race in 2006, that would’ve been an Obama loss.
But has Obama lifted a finger to stump for Alexi so far in this Senate race? He supported Burris for gov way back in 2002 so even if Alexi succeed in pushing Burris out of office wouldn’t that still be an Obama loss by your logic, indupage?
Obama has bigger fish to fry in 2010 than just the Illinois Dem senate primary to try to maintain his political credibility. Like making sure Congressional Dems don’t get slaughtered.
- Bill S. Preston, Esq. - Tuesday, Sep 8, 09 @ 10:11 pm:
I think ArchPundit’s got it right.
http://archpundit.com/blog/2009/09/07/financial-reporting-done-wrong/