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*** UPDATED x3 *** NBC5: Giannoulias bank will be closed today

Friday, Apr 23, 2010

* It’s not on the FDIC’s list as of 3:26 pm, but NBC5 is reporting that the end is coming at 5 o’clock

A worker at the main Broadway Bank on Broadway and Granville says “it’s over.”

The bank is open now — but the worker says at close of business they’ve been told “that’s it.”

One worker walked out of the building with a box of belongings.

Black curtains have been put up today. You can’t see in.

*** UPDATE 1 *** ABC7 is now reporting the same thing

After 30 years in business Broadway Bank’s employees are telling customers it’s the end of the line.

“They said it would no longer be Broadway Bank on Monday but our funds are safe under the FDIC,” said Bob Kitsos, Broadway Bank customer.

As is CBS2

CBS 2’s Suzanne Le Mignot reports customers are being told Broadway Bank will close after 6 p.m. Friday and will re-open Saturday under a new name. It was not immediately clear if another bank is in line to take control of the bank right away. […]

Sources tell CBS 2 the FDIC will shut down several Chicago banks Friday afternoon.

*** UPDATE 2 *** It looks like the White House got the message that Dick Durbin was trying to send: Get off the dime and start helping Giannoulias

Obama’s deputy press secretary says the president intends to help Democratic candidates in Illinois “up and down the ballot.” […]

Durbin said Friday that the White House inquired about the state of Giannoulias’ campaign, asking about organization and fundraising. Durbin also defended Giannoulias and says he believes he can win the race against Rep. Mark Kirk.

*** UPDATE 3 *** It’s over

Banking regulators entered the Chicago headquarters of Broadway Bank after 5 p.m. Friday, the apparent concluding step in the government’s expected takeover of the family-run lender that helped launched U.S. Senate candidate Alexi Giannoulias’ political career.

Two sources with knowledge of the bank’s situation said they anticipated that the government would seize Broadway Bank later this evening. Broadway was unable to raise the $85 million it needed to remain independent.

- Posted by Rich Miller        

61 Comments
  1. - Knome Sane - Friday, Apr 23, 10 @ 3:31 pm:

    The clock is ticking now for Alexi to depart the US Senate race. Does anyone have Dan Hynes’ phone number?


  2. - Chicago Cynic - Friday, Apr 23, 10 @ 3:31 pm:

    If the FDIC bailout to facilitate the sale is over $100 million, I predict he’s toast. If it’s under 50, he survives. And if it’s in the middle, it’s an open question. Fasten your seat belts.


  3. - Chicago Cynic - Friday, Apr 23, 10 @ 3:31 pm:

    Yes, and I have David Hoffman’s too.


  4. - Stones - Friday, Apr 23, 10 @ 3:33 pm:

    Alexi is toast gone. The only question is will he prolong the pain until November or withdraw earlier.


  5. - Amalia - Friday, Apr 23, 10 @ 3:37 pm:

    Alexi….turn out the lights, the party’s over….

    paging David Hoffman. the Democrats need an ethical infusion
    and they need it fast.


  6. - John Bambenek - Friday, Apr 23, 10 @ 3:37 pm:

    Draft Cohen!


  7. - John - Friday, Apr 23, 10 @ 3:38 pm:

    not long before they all crumble…


  8. - OneMan - Friday, Apr 23, 10 @ 3:38 pm:

    Nope…

    He is not going anywhere….


  9. - Segatari - Friday, Apr 23, 10 @ 3:39 pm:

    And Rich Miller thought me reporting what was said on a national radio show and pulling the comment because he thought it was “stupid”. How red-faced is he now? Alexi should stay on the ballot though.


  10. - Whatever - Friday, Apr 23, 10 @ 3:40 pm:

    Time to put some black curtains up at the campaign.


  11. - Brennan - Friday, Apr 23, 10 @ 3:42 pm:

    I hope that OpEd by Demetris gets some press because he has a point, but it is a little like crocodile tears when he’s already chairman of a new bank in the Bronx.


  12. - Knome Sane - Friday, Apr 23, 10 @ 3:47 pm:

    Rich, a couple of things:

    1) the FDIC failed bank list is updated on Mondays and will not have those banks that are taken over today on the list until then (you’ll know it happened today if it does)

    2) It is my understanding that the FDIC does not give advance warning to those banks it’s about to shutter. To do so would give the shuttered bank an opportunity for skullduggery.

    My suspicion is that the Broadway Bank executives are walking away at 5:00 knowing that the bank has failed.


  13. - Oswego Willy - Friday, Apr 23, 10 @ 3:49 pm:

    Rich,

    “Hang the black curtains, take the cannoli”

    Black curtains … Black Curtains! … THE cornerstone of “who” you have told the citizens that elected you has … Balck Curtains … hanging …

    Tick Toc, Alexi … Tic Toc


  14. - Trying 2 B Helpful - Friday, Apr 23, 10 @ 3:49 pm:

    Certainly a set back for Alexi’s campaign but at least it is coming now and not this fall. He’s about to find out who his real friends are in terms of political friends who stick by him, fundraising friends, and moral supporters. We’re about to see how he and his team handle a political crisis in some ways similar to the Jeremiah Wright tapes for Obama which also came out the spring before the election and which had the potential to sink the campaign.


  15. - ABCBoy - Friday, Apr 23, 10 @ 3:50 pm:

    Somebody said today that Alexi G is no fan of Madigan et al. If you combine that with the fact that he’s likely to know more political “dirt” than Cohen and thus hold a stronger hand, how likely is it that he’d be able to resist pressure more effectively than Cohen?

    Alexi has nowhere to go. His family bank has failed, he’s done as Treasurer. Will the Democratic Party really embrace him for a political comeback later if he does the “big thing” and steps aside for somebody else? Unlikley.

    Unless they have a major stick to wield against him, I don’t see him bowing out. Maybe if the White House calls, or if somehow his entire social circle is the Democratic Establishment and thus he risks being 100% sociall shunned if he refuses to drop?


  16. - Louis Howe - Friday, Apr 23, 10 @ 3:52 pm:

    There’s no excuse for this bank to go under, except management misjudgment. Especially considering the family withdrew $70 million a few years ago.

    Where’s Rahm when you need him? Perhaps he would like to self fund a US Senate Campaign? Nah…The race is too competitive
    for him.


  17. Pingback Alex Giannoulias’ (D CAND, IL-SEN) Broadway Bank closing? | RedState - Friday, Apr 23, 10 @ 3:56 pm:

    […] (Via Capitol Fax Blog) Although you have to wonder whether they meant ‘block the sunlight,’ what with it being the best sort of disinfectant, and everything. […]


  18. - Oswego Willy - Friday, Apr 23, 10 @ 3:58 pm:

    Question:

    If Mr. Potter guarantees the Alexi! bank, and the Broadway Bank reopens in two weeks, what will happen to the Bailey Building and Loan?


  19. - South Side Mike - Friday, Apr 23, 10 @ 3:59 pm:

    Knome Sane,

    Actually, FDIC will have the updated list by this evening, complete with press releases. In general, they close a bank at the end of the business day, normally ~5pm local time. Within 1-2 hours, press releases are posted on the FDIC website. Broadway will in all likelihood have company on the closed list today by a bank or two in the SE (GA or SC) and one or two on the West Coast. They’ve been trying to spread out the billion dollar asset banks so that there’s only 1 or 2 of them per week. Broadway barely meets that category, so there might be another one of that size that is closed today.

    As far as hit to the FDIC fund, losses have been ranging from ~15-40% of assets. I think this one will come in on the lower end of that range, so ~$175 million will be the hit. That will definitely sound bad to the public.


  20. - Cousin Ralph - Friday, Apr 23, 10 @ 3:59 pm:

    Where is Alexi to go? Short of Obama offering him a graceful exit, say an ambassadorship, what incentive does he have to go? If he bows out in shame, what will he do for a living? No, he stays until he is given a good place to go.


  21. - Adam Smith - Friday, Apr 23, 10 @ 4:02 pm:

    Nice of the feds to do this at 5 pm on a Friday. That dampens the coverage. Again, this was entirely expected. If I’m Alexi I say, “We were upfront that this would happen and we told you why. Our bank fell victim to the Bush/Kirk recession.”

    No one can make him go and he’s still got plenty of loyal followers. Don’t be surprised if it blows over and he fights on to the end.


  22. - Rich Miller - Friday, Apr 23, 10 @ 4:03 pm:

    ===Nice of the feds to do this at 5 pm on a Friday.===

    They always do this on late Friday afternoons. Try to take off your tinfoil hat, please.


  23. - RFR - Friday, Apr 23, 10 @ 4:05 pm:

    The FDIC always seizes failed banks on Friday; it gives them the weekend to sort out the sale to a surviving bank, and then the bank can reopen on Monday to provide customers with access to their accounts.


  24. - Knome Sane - Friday, Apr 23, 10 @ 4:05 pm:

    ==Nice of the feds to do this at 5 pm on a Friday. That dampens the coverage.==

    Adam, you are clueless as to how the FDIC operates. Each and every bank seized by the FDIC are seized on a Friday afternoon at 5:00. It has nothing to do with political cover or dampening news coverage.


  25. - Knome Sane - Friday, Apr 23, 10 @ 4:08 pm:

    ==“We were upfront that this would happen and we told you why. Our bank fell victim to the Bush/Kirk recession.”==

    We were so unfront, in fact, that we took $70 million out of the bank before it failed. Wait, was it because we withdrew the $70 million that it collapsed?….


  26. - Yellow Dog Democrat - Friday, Apr 23, 10 @ 4:09 pm:

    Alexi is not going anywhere.

    David Hoffman and the Chicago Tribune lost the primary election fair-and-square.

    Now the Tribune and Hoffman’s “Reformocrat” backers are trying to undo that election through the specious argument that Alexi is somehow responsible for the collapse of Broadway Bank five years after he stopped working there.

    Those allegations will hurt Alexi, and Kirk might win. But unlike Cohen, there won’t be a bleed-over to the rest of the ticket.

    And Democrats would rather have Alexi lose than allow “reformers” to overturn an election after the fact and install Hoffman. That would only encourage similar behavior in the future.


  27. - Just Wondering - Friday, Apr 23, 10 @ 4:09 pm:

    I got my first mortgage from that bank back in 1985.


  28. - Yellow Dog Democrat - Friday, Apr 23, 10 @ 4:11 pm:

    P.S. Leave it to Republicans and Hoffman supporters to be giddy at all those bank employees losing their jobs.


  29. - phocion - Friday, Apr 23, 10 @ 4:11 pm:

    I’m thinking this will drown out news about Brady’s tax returns. Lucky break for Sen. Brady.


  30. - siriusly - Friday, Apr 23, 10 @ 4:13 pm:

    someone mentioned Rahm as a possible candidate

    As crazy as that sounds, he would make this into an amazingly fun campaign. What a candidate he would be. I actually think that they really need to get him to think about it.


  31. - Knome Sane - Friday, Apr 23, 10 @ 4:13 pm:

    ==And Democrats would rather have Alexi lose than allow “reformers” to overturn an election==

    Not this Democrat.

    And YDD, I would say your passionate defense of Alexi would hold more water if your guy didn’t receive a payout from the $70 million grab…..


  32. - Harry - Friday, Apr 23, 10 @ 4:13 pm:

    Alexi will survive this and do well


  33. - siriusly - Friday, Apr 23, 10 @ 4:15 pm:

    YDD - you’re a bigger fool than people say you are if you don’t think that having a US Senate Candidate who was head of a failed bank a year after bank failures nearly brought the world economy down won’t have “any bleed” to the rest of the Democratic ticket.

    I am no Tribune fan, but you have to take off your partisan hat for a minute and see that Alexi is going to drag down the Dems just as badly as SLC could have. He’s got to go. This is beyond a uphill battle. He’s a clear major liability for every Democrat on the ballot in Illinois.


  34. - Anonymous - Friday, Apr 23, 10 @ 4:16 pm:

    Harry, I see Happy Hour started early, wherever you are.


  35. - Vinron - Friday, Apr 23, 10 @ 4:18 pm:

    NPR ran an All Things Considered piece called Anatomy of a Bank Takeover. It was a very good story about how the FDIC actually takes over failed banks at closing on a Friday and how they explain it to employees.

    http://www.npr.org/templates/story/story.php?storyId=102384657


  36. - Anonymous - Friday, Apr 23, 10 @ 4:22 pm:

    And, YDD, as has been explained here before, Alexi’s bank work was his ONLY qualification for public office — other than his family money, his good looks, and his suit. That’s why the bank failure sticks. Either he did important work at the bank and was therefore responsible in part for the failure, or he didn’t do much long ago when he was there, and he misled folks when he first ran for office. Either way, he can’t run from the Kirk and GOP ads that are coming.


  37. - shore - Friday, Apr 23, 10 @ 4:22 pm:

    a knife wielding hooker using lt gov wins a nomination and has to quit, a governor who subpoenas the president of the united states and a us senate candidate who gave loans to mobsters has his bank fail.

    And it’s not even may 1st yet. and that’s only 1 party.

    what a state.


  38. - Steve - Friday, Apr 23, 10 @ 4:24 pm:

    A bank for Rezko, a bank for Obama, a bank for John D’Arco Jr, a bank for Michael “Jaws” Giorango, and now a bank for the FDIC. Broadway Bank: a community bank that made loans several states away from “the community”.


  39. - Carl Nyberg - Friday, Apr 23, 10 @ 4:33 pm:

    I’ll repeat my challenge from the earlier thread.

    Is anybody willing to predict that Giannoulias *will quit* the Senate race?

    B/c I think the people who say he *should quit* are a few fools mixed with a bunch of liars and partisan hacks. It’s the same liars and partisan hacks who were arguing the United States just had to invade Iraq b/c it was a threat to the United States.

    The liars and hacks are making noise to help elect Congressman Liar and Hack to the U.S. Senate.

    Who is willing to say, “I predict Giannoulias will quit the Senate race”?


  40. - Oswego Willy - Friday, Apr 23, 10 @ 4:33 pm:

    YDD - ABC7 reported most, if not all, employees will be kept, the only “fire sale” going on is of the Alexi! Bank assets


  41. - MOON - Friday, Apr 23, 10 @ 4:34 pm:

    Let me say I am no fan of Alexi. What I find so distasteful and wrong are all of you “grave dancers” who take such delight in a persons problems. I am not sticking up for Alexi but rather making an observation. I note that in most comments people take great pleasure when any elected official comes upon hard times.


  42. - Oswego Willy - Friday, Apr 23, 10 @ 4:36 pm:

    Carl …

    Iraq?

    Really ….

    …..

    Iraq?


  43. - Pot calling kettle - Friday, Apr 23, 10 @ 4:41 pm:

    At least for now, Alexi can parrot whatever excuses Brady gives with respect to his poor business showing…


  44. - Knome Sane - Friday, Apr 23, 10 @ 4:44 pm:

    Carl,

    I predict that Alexi will step aside. He is damaged goods. The DSCC will not sink money into this sure fire loss and the White House will flee his campaign quicker than you can say Jack Rabbitt Slim.


  45. - Joe McCarthy and the Red Scarecrows - Friday, Apr 23, 10 @ 4:49 pm:

    Dude. Carl. Simmer.

    This isn’t Daily Kos. Nor is it Redstate. We can have a debate without name calling. But in response to your red herring, would the ticket be stronger without Alexi? Yes. Will he step down, probably not. But the kind of pressure he is about to face has felled more than a few politicians.


  46. - Fed up - Friday, Apr 23, 10 @ 4:52 pm:

    Carl speaking of liars you stated the loans Alexi made to convicted felons and members of organized crime were good loans and repaid. These loans were not repaid that might be a good loan to you but no its not really


  47. - Anonymous - Friday, Apr 23, 10 @ 4:57 pm:

    YDD - I’m a lifelong D, party-supporting guy. I’ll vote for Alexi if he’s on the ballot. But you’re wrong. It’s way more than just Hoffman or Kirk supporters that think he should step down. He’s damaged goods and you know it. I know you are a big fan of his, but he’s not doing the party faithful any favors if he stays on the ticket.


  48. - Oswego Willy - Friday, Apr 23, 10 @ 5:03 pm:

    Scott Lee Cohen thinks Alexi! disclosed everything before the primary and was, and has been, fully open about the bank all along, and all this will blow over … and Alexi! is an asset to the ticket….


  49. - wordslinger - Friday, Apr 23, 10 @ 5:04 pm:

    What does he get by withdrawing? The damage has been done. It’s not good, but it’s a long way til November.


  50. - ABCBoy - Friday, Apr 23, 10 @ 5:12 pm:

    As I’ve said, I think Alexi *should* step aside, but I suppose since I’m a partisan ‘hack’ I’d actually want him to stay as damaged goods.

    There is no incentive for him to step aside right now, however. He doesn’t have anyplace to land. If Madigan et al offer him some private sector cush job and a “graceful exit” so he can still hang out at the East Bank Club, then he’ll go.

    But I’d be shocked if he stepped down without some safe place to land. Alexi is much more savvy than SLC.


  51. - Downstater - Friday, Apr 23, 10 @ 5:26 pm:

    Wow!
    These Dems wanted to hang anyone that was on the board of a failed S&L, back in the 1990’s.
    But today, having gotten bona fides for being an officer in a failed $1 billion bank is considered forgiveable.

    It’s a new day!!!


  52. - Steve - Friday, Apr 23, 10 @ 5:36 pm:

    Will Alexi step aside? Why should he. In sleazy Illinois, if voters can vote for Blago twice, Mayor Daley several times, and others why not Alexi? Being a mob linked banker shouldn’t turn off Illinois voters. Look at Alexi’s poll numbers. They aren’t that bad.


  53. - Lester Holt's Mustache - Friday, Apr 23, 10 @ 5:56 pm:

    Correct me if I am wrong, but if Alexi quits, doesn’t his name still appear on the ballot? Remember Mel Carnahan died over in Missouri a few years back, and his name still appeared. If the Dems wanted another candidate, it would have to be a write-in, I think. It may be a moot point by now, Alexi may as well stick it out.


  54. - Oswego Willy - Friday, Apr 23, 10 @ 5:57 pm:

    “Alexi, how do you feel about these turn of events at your bank?”

    “I don’t know. I guess I realized that I’m just Alexi!”.

    “As much as I wanted to be Gordon Gekko, I’ll *always* Alexi!.”


  55. - Sent from my iPhone - Friday, Apr 23, 10 @ 6:21 pm:

    == if Alexi quits, doesn’t his name still appear on the ballot==

    No, the Dems have until August to change the ballot. I forget the exact date, but after then they are stuck.


  56. - Amalia - Friday, Apr 23, 10 @ 6:30 pm:

    since when does a request that someone do the honorable thing
    and step aside imply that the one requesting is a fool, a hack,
    not correct, or whatever else is thrown at those of us who want honor on the ticket? the family took the bank down, Alexi’s
    actions included. do the right thing and leave the ticket.


  57. - BigTwich - Friday, Apr 23, 10 @ 6:30 pm:

    The Banks web site was just replaced with an FDIC notice.

    http://www.broadwaybankchicago.com/


  58. - Left Leaner - Friday, Apr 23, 10 @ 7:11 pm:

    i love the doomsday folks here. this will be a non-issue come november. alexi quitting would be the WORST thing for the democrats.


  59. - Downstater - Friday, Apr 23, 10 @ 10:08 pm:

    Um Alexi,

    Now this makes you the most qualified Illinoisan to be our Senator? Can you explain that one to me again?


  60. - DuPage Dan - Friday, Apr 23, 10 @ 10:53 pm:

    How long has it been since CN mentioned Iraq in an irrelevant manner. Well, I guess we will have to start that count again, eh?


  61. - scoot - Saturday, Apr 24, 10 @ 11:37 am:

    How freeking ridiculous and careless it is to say that the Kirk campaign was”hoping & praying” that the bank closes..take a breath already!

    Alexi isn’t a good candidate for the Senate & the White House was trying to recruit others to run for the seat..and didn’t tell the little guy they would be visiting Quincy next week.

    Alexi ran on the experience etc..of runnijng the family bank while running for Treasurer…and now he has some major backpeddling going on…BUT my friend you can’t have it both ways. He was toast before the bank problems…and now he is burnt toast.


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