What am I missing here?
Monday, Aug 2, 2010 - Posted by Rich Miller
* Other than making a little pop as President Obama rolls into town, I’m not quite sure what the purpose is behind today’s Sun-Times story…
By February 2006, businessman and political fixer Tony Rezko was already politically radioactive, caught up in a federal investigation that would see him criminally charged by the end of that year.
News reports had linked Rezko, a key adviser and campaign fund-raiser for then-Gov. Rod Blagojevich, to shady deals involving state pension funds — among the crimes that ultimately would send him to prison.
This was the Tony Rezko who, looking for millions of dollars for a massive South Loop development, turned to Broadway Bank, owned by the family of Alexi Giannoulias. Giannoulias, the Democrat now running for U.S. Senate, had left his post as a senior loan officer at the Chicago bank in late 2005 to mount a successful campaign for Illinois state treasurer, though he still held an ownership stake in the bank.
Giannoulias has said previously that he and his family’s bank couldn’t have known back in 2002 when they loaned Rezko money that he would become so radioactive. That’s the big hook for this story: Aha! Rezko got a loan in 2006! Everybody knew he was shady by then!
But, wait a sec. Rezko’s name appears nowhere on the loan because he was a minority partner. The company got the loan at least three months after Giannoulias took a paid leave of absence from the bank. The company paid the loan back a few months later by taking out another loan from a different bank.
Am I missing something here?
* This story, however, is more meaningful…
Giannoulias, already facing questions about his fundraising after bringing in less than $900,000 for his general election campaign in the past quarter, finished June with more than $200,000 in debts left over from a competitive fight for the Democratic nomination.
The candidate owes a total of $208,438 to vendors and staffers, according to his most recent Federal Election Commission filing. More than $61,000 of the debt is owed to consulting firm Adelstein Liston, which produces Giannoulias’s television ads. An additional $41,450 covers unpaid bonuses to staff members and consultants left over from the primary. […]
Giannoulias has held onto his debt for months, though: The Illinois primary was the first of the year, back in February. And his fundraising contrasts sharply with Republican nominee Mark Kirk’s. The congressman raised $2.3 million in the second quarter and ended June with $3.9 million in the bank, compared with $1 million for Giannoulias.
It’s one thing to owe a debt to yourself because those don’t have to be paid back right away. It’s quite another to owe that much cash to vendors and staffers this far away from the primary. Giannoulias’ position is mighty tenuous. He’d better raise a whole lot of moolah when the preznit hits town.
* Meanwhile, does anybody in their right mind really think that a VAT will pass after the election if the national Democrats lose a ton of seats? Senate Republicans are gonna line up to help break a filibuster shortly before their position is improved? This looks like a straw man…
U.S. Senate nominee Mark Kirk, now a congressman from the North Shore, has new legislation that would ban the federal government from imposing a national sales tax, more commonly known as a value-added tax, or VAT.
The action amounted to a bit of political theater, since no authority exists now for the feds to impose a VAT; one would have to be approved by Congress. But the good congressman was trying to make a point, and did: no new taxes named VAT.
* Related…
* Peoria needs more than lip service, generic priorities in Senate race: Republican U.S. Senate candidate Mark Kirk dropped into town a little over a week ago to unveil his “Peoria Agenda.” … Unfortunately, after looking through his “Peoria Agenda,” our first-blush reaction is that it’s rather generic. Of Kirk’s nine priorities, only three involve specific policy proposals. The remainder are vague pledges of support for things no sane candidate would oppose.
* Mark Kirk on southern Illinois swing
- Leroy - Monday, Aug 2, 10 @ 10:21 am:
== Am I missing something here? ==
Nope. All buffers were correctly in place.
- Anonymous - Monday, Aug 2, 10 @ 10:24 am:
When you inherit millions of dollars like alexi, get a 395 million dollar government bailout, don’t pay taxes, and then stiff your staffers it severely undermines your credibility as a candidate and person. These staffers are probably relying on these paychecks to make ends meet and it’s hard for him to argue that he’s fighting for working families when he won’t pay his own workers.
It’s also another demonstration of playing games with numbers which is something we really don’t need more of in our politicians in dc.
- Logical Thinker - Monday, Aug 2, 10 @ 10:25 am:
Probably a stretch by the Sun-Times on this particular story. However, when a bank fails and costs the taxpayers $394 Million and the senior loan officer runs for US Senate in the same state, there are going to be stories about questionable loan practices. I’m guessing this won’t be the last one.
I think Obama’s visit this week for an AG fundraiser could be very interesting. What happens if the Blago jury comes back with a verdict either on Wednesday or Thursday? If I were the President, I would want to be as far away as possible. The timing (if this happens) could not be worse for AG and his donors.
- OneMan - Monday, Aug 2, 10 @ 10:28 am:
As for owning people money he promised them months later….
Perhaps he is just following the model of the state of Illinois.
- VanillaMan - Monday, Aug 2, 10 @ 10:28 am:
Giannoulais is in a position where a lot of financial heavy hitters have written him off, so money they give is going to other US Senate incumbants fighting for their re-election.
If you were a national heavy hitter and had to choose between Reid, Feingold, Boxer, or Giannoulias, it is doubtful you will choose Alexi. You want to impress important national Democrats? You don’t have to try to impress Obama by fronting Giannoulias campaign funding, because the Administration’s preferred candidate wasn’t Giannoulias.
Then what is it about Giannoulais anyway? He was the guy to ride Obama’s coattails into the Senate. Right now, there ain’t no coattails. Being Obama’s buddy isn’t clinching this race, and I think that is about all Giannoulais had at this point in his Freshman political career. Giannoulais has one term as Comptroller, claiming that he would be better than the current former three-term Comptroller, Roland Burris. That isn’t much.
So, while Kirk is getting money from an excited GOP dreaming of winning Obama’s former Senate seat, Giannoulais, along with many incumbent Democrats, are fighting for air.
- Rich Miller - Monday, Aug 2, 10 @ 10:31 am:
===costs the taxpayers===
LT, try Googling “FDIC funding”
- VanillaMan - Monday, Aug 2, 10 @ 10:31 am:
Quinn is also hurting Giannoulais right now. The Governor has not had a good summer politically. It is difficult to get excited over the Democratic ticket in 2010. Madigan and White look quite safe, and they seem to be the only ones voters trust. Neither one of them are new. There are no new bright stars on this ticket. That is going to lessen interest in funding it.
- Cincinnatus - Monday, Aug 2, 10 @ 10:40 am:
There are probably two inter-related reasons this is hitting now. The article states that the documents associated with Rezko’s loan just became available, and I also tend to think that Kirk had the information and got it to the Sun Times.
Even though Alexi took a leave of absence, it is possible that he know about the loan since I doubt a $23M loan went through in less than several months.
And you are right, the fundraising numbers are much more relevant to this race than Rezko. If Alexi were to make good on his obligations, as he should, $700k ain’t a lot of money in an Illinois state-wide campaign. I wonder how much and how long the DCCC will offer up if Alexi cannot show some fundraising prowess.
- Cincinnatus - Monday, Aug 2, 10 @ 10:43 am:
Rich,
Last time I checked, the FDIC was underwater by about one-third of its obligations. While it hasn’t yet cost the taxpayers money, the Treasury is on the hook to make good on FDIC obligations, if push comes to shove.
- Rich Miller - Monday, Aug 2, 10 @ 10:44 am:
Unless and/or until that happens, it’s not a valid argument.
- (618) Democrat - Monday, Aug 2, 10 @ 10:45 am:
@LT 10:25
The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities.
- Segatari - Monday, Aug 2, 10 @ 10:50 am:
>* Meanwhile, does anybody in their right mind really think that a VAT will pass after the election if the national Democrats lose a ton of seats? Senate Republicans are gonna line up to help break a filibuster shortly before their position is improved?
Do you think the Dems wouldn’t try to pass it during the lame duck session since the defeated wouldn’t have a price to pay for it? I mean all they need is ONE crossover to break a filibuster.
- Rich Miller - Monday, Aug 2, 10 @ 10:53 am:
=== I mean all they need is ONE crossover to break a filibuster.===
Yeah, because I’m sure Ben Nelson will stick with the Dems on that one. Sheesh.
- The Doc - Monday, Aug 2, 10 @ 11:00 am:
==Yeah, because I’m sure Ben Nelson will stick with the Dems on that one. Sheesh==
Or Evan Bayh. Or Kent Conrad. Or Blanche Lincoln.
Segatari, this is a Congress that is relegated to cutting food stamps to pay for Medicaid funding. And somehow you’re of the mind that there’s the courage to pass a completely new national sales tax?
- Cincinnatus - Monday, Aug 2, 10 @ 11:01 am:
There is no point of discussion a VAT unless in the context of a complete overhaul of the IRS system. Any Republican, and most Democrats from fiscally conservative states, would be committing political suicide by voting for a VAT to be added to what many consider to be an already crushing tax burden.
- VanillaMan - Monday, Aug 2, 10 @ 11:18 am:
From what we have seen from DC over the past year, those in power have decided they know what is best for us, and they will do whatever they want, regardless of the political price they might pay.
If they want a VAT tax, expect them to fight for it and do whatever it takes ethically or unethically, to pass it. The powers in DC don’t care what we think.
- Segatari - Monday, Aug 2, 10 @ 11:33 am:
>=== I mean all they need is ONE crossover to break a filibuster.===
>Yeah, because I’m sure Ben Nelson will stick with the Dems on that one. Sheesh.
If they got him to vote for Obamacare that was heavily opposed by most Americans, what makes you think they can’t get him to vote for a VAT? The massive runup of the deficit these past two years is going to be used to justify passing it because “we can’t pay the bills and we’re gonna go bankrupt if we don’t”. You’re pretty naive if you think otherwise.
- Chicago Cynic - Monday, Aug 2, 10 @ 11:35 am:
So let me get this straight. Mark Kirk is introducing legislation to outlaw something that has never happened and that nobody outside of think tanks has proposed? Umm, ok. Opens up all kind of possibilities for nonsense. Literally anything that doesn’t exist could be the subject of proposed legislation, just in case it someday may be introduced. What’s next Mark? A law prohibiting androids from mating?
- Segatari - Monday, Aug 2, 10 @ 11:37 am:
>Segatari, this is a Congress that is relegated to cutting food stamps to pay for Medicaid funding. And somehow you’re of the mind that there’s the courage to pass a completely new national sales tax?
They’re gonna do it during the lame duck session, where they don’t have to answer to ANYONE because the election will have already happened and the guys that had already lost will do whatever they want in the last two months of their term and won’t care what anyone thinks about it because they have nothing left to lose. This is why the IL special election is now important because of the GOP takes the seat the Dems would have to get TWO crossovers instead of ONE.
- Wumpus - Monday, Aug 2, 10 @ 11:50 am:
Rich, everyone (politicians) knew Blago was shady back then too, but they still campaigned with him. Rezko was still a powerbroker, man behind th ecurtain back then. I am not saying Ali G is guilty, but he was still am important figure in state politics.
As a candiate for Senate 2010-2011, I can strongly and positively say that I ahve taken no money from Rezko. Barton, get that in a press reelase.
- Mr. Cow - Monday, Aug 2, 10 @ 12:24 pm:
Please know that the President is hosting a bday party for himself for $30.000 a guest when he is here stumping for Alexi. A true man of the people!
- Segatari - Monday, Aug 2, 10 @ 12:55 pm:
And Rich Miller deleted my last two responses because he can’t handle the truth…he has chosen to find things out the hard way again.
- Small Town Liberal - Monday, Aug 2, 10 @ 12:56 pm:
Mr. Cow - Wow, politicians raise money by having fundraiser dinners with expensive admission prices? Who knew? Thanks for the crack investigative journalism.
- Segatari - Monday, Aug 2, 10 @ 12:56 pm:
Ooops. Why didn’t these show up when the page loaded? Arrgh.
- Rich Miller - Monday, Aug 2, 10 @ 12:57 pm:
Actually, Segatari, you’ve been in moderation for months because of your tinfoil hat propensities. Congratulations. I just haven’t gotten around to reading your comments yet. I will eventually.
- 47th Ward - Monday, Aug 2, 10 @ 1:01 pm:
===From what we have seen from DC over the past year, those in power have decided they know what is best for us, and they will do whatever they want, regardless of the political price they might pay.===
More gibberish from VM. And who is this “we” you seem to keep writing about? Whom do you speak for, VM?
===If they want a VAT tax, expect them to fight for it and do whatever it takes ethically or unethically, to pass it. The powers in DC don’t care what we think.===
I first started hearing this VAT nonsense a few weeks ago. Where is it coming from? More scare tactics from the GOP? As far as I can tell, in the reality based community, “they” don’t want a VAT (assuming VM means the Democrats).
VM, please stop speaking for others. Don’t tell me what “we” all know about “us.”
- Plutocrat03 - Monday, Aug 2, 10 @ 1:12 pm:
I seem to remember a trial balloon coming from the White House floating a VAT as a way of funding health care reform.
I will look up the source when I get back to a real computer.
It is no secret that VAT is on the mind of the taxing class. It is just a matter of listening to the talking heads…..
- Ghost - Monday, Aug 2, 10 @ 1:17 pm:
=== From what we have seen from DC over the past year, those in power have decided they know what is best for us, and they will do whatever they want, regardless of the political price they might pay.====
Your kidding right? Did you live in Canada during the Bush years?
- 47th Ward - Monday, Aug 2, 10 @ 1:23 pm:
===It is just a matter of listening to the talking heads…===
LOL! This ain’t no party, this ain’t no disco, this ain’t no fooling around.
- John Ruberry - Monday, Aug 2, 10 @ 2:15 pm:
When a bank loans out $22 million, isn’t it a prudent thing to look a bit beyond the loan app?
Of course prudency and Broadway Bank are oxymorons.
- Rich Miller - Monday, Aug 2, 10 @ 2:19 pm:
John, you did notice that the company got another bank loan, from another bank, right?
- John Ruberry - Monday, Aug 2, 10 @ 2:22 pm:
Yeah, so the loan “performed,” in a round about way. But that lender, Mutual Bank, failed too.
- Cosmic Charlie - Monday, Aug 2, 10 @ 2:59 pm:
>
For what? A bonus for eeking out a victory when you are the heavy favorite? Who pays bonuses for a primary victory anyway? Sheeesh.
- Cosmic Charlie - Monday, Aug 2, 10 @ 3:02 pm:
Sorry, the quote from the story was suppossed to be included….
“An additional $41,450 covers unpaid bonuses to staff members and consultants left over from the primary. “
- The Doc - Monday, Aug 2, 10 @ 3:20 pm:
==It is no secret that VAT is on the mind of the taxing class. It is just a matter of listening to the talking heads….. ==
Perhaps you’ve heard of Bruce Bartlett. He’s one of the first that recently advocated for a VAT, he’s one of the more credible voices on taxation, and he can hardly be labeled as part of what you refer to as the “taxing class”.
Google is a marvelous tool, for both real computers and whatever device you are currenly employing, Plutocrat.
- Rich Miller - Monday, Aug 2, 10 @ 3:28 pm:
The VAT has been kicking around for years, but I don’t think it’s ever had a real test in the Senate, and that takes many years, decades, even generations.
- BH - Monday, Aug 2, 10 @ 5:57 pm:
And don’t forget that Mutual bank donated a lot of money to Blago in exchange for state contracts.
Line em in a room and you see Rezko, Levine, Blago, Giannoulias and you can’t tell them apart. You can argue that it’s Alexis and not Alexi but that’s the picture people see. The son pays for the fathers sin (unless he dies and you inherit 20 million). Look at all their connections between loans, consulting fees, campaign donations, state contracts, etc.
Blago = Giannoulias, twenty years younger, not much brighter but with a better haircut. At least Blago doesn’t practice pretending to be Obama an hour a day in front of the mirror. Listen to Giannoulias cadance, his mannerisms, his delivery.
- VanillaMan - Tuesday, Aug 3, 10 @ 9:02 am:
The VAT has been kicking around for years, but I don’t think it’s ever had a real test in the Senate, and that takes many years, decades, even generations.
So was federally controlled health care, but public opinion and facts didn’t get in the way of DC jamming that load of bankrupted BS down our throats, did it?
- Rich Miller - Tuesday, Aug 3, 10 @ 9:07 am:
VMan, federal health care reform has been debated since the 1940s in the congress. Unlike VAT. But, hey, don’t let the facts get in the way.
- Small Town Liberal - Tuesday, Aug 3, 10 @ 9:28 am:
Not to mention, Vman, “federally controlled health care” didn’t happen.
- Rich Miller - Tuesday, Aug 3, 10 @ 9:33 am:
Not to mention that the Dems in 06 and 08 made federal heathcare reform a huge part of their agenda. There was a mandate.