On the way to his March primary victory, Democratic candidate for state treasurer Alexi Giannoulias found himself defending multimillion-dollar loans his family-owned bank made to a Chicago crime figure.
While saying there was nothing wrong with the loans, he also emphasized they were business decisions made while he was in law school and not a full-time bank employee.
But newly gathered records from South Carolina, Florida and Cook County show that his family’s Broadway Bank made an additional $11.8 million worth of mortgage loans last year to Michael Giorango, a convicted bookmaker and prostitution ring promoter. And Giannoulias, a senior loan officer at the bank, oversees those 2005 loans. […]
Giannoulias also said in March that Broadway Bank “never financed any casinos. We never did anything like that.”
The Tribune interviewed Giannoulias again last week after newly obtained records showed the more recent Broadway loans, including a $3.6 million mortgage that Giorango and another convicted felon used to acquire a casino boat marina in Myrtle Beach, S.C.
“I thought it was for condos,” Giannoulias said of the waterfront property that secured that loan.
Shocked! I’m shocked!
He’s totally inappropriate to be treasurer in Illinois.
With an attitude like that, he is more cut out for the General Assembly. It is those peoples’ jobs to fund crime figures via state contracts, funding government agencies, pork projects, and general corruption (aka business as usual)
So I poo-poo Alex and wag my finger in his direction. Shame shame shame.
Now where are the rest of today’s Illinois corruption stories….?
Comment by Leroy Monday, Apr 10, 06 @ 5:44 am
Giannoulias said the state treasurer must get “the best rate of return for taxpayers to create jobs.â€
Is Tusk tutoring this child, too?
Comment by Anonymous Monday, Apr 10, 06 @ 6:10 am
Well… I hate to say I told you so…..
Comment by The original Bill Monday, Apr 10, 06 @ 6:37 am
Obama walks the Abramoff plank.
Comment by Anonymous Monday, Apr 10, 06 @ 6:47 am
He’s got a point. The Treasurer’s job is to get the best return. You have to respect that on a certain level.
It would be nice to see government run like a business for a change.
Comment by Skeeter Monday, Apr 10, 06 @ 7:11 am
Here’s a suggestion for tomorrow’s QOTD. Who will be the first to ask Alexander to drop out Brackarama, The Governor?
Or maybe someone could reach out for Illinois politics other banker —Petey Fitzgerald and ask how many outfit guys got loans from the his dad’s bank?
Bet the libs are really proud now.
Comment by HeKnowsBarack Monday, Apr 10, 06 @ 7:27 am
Wow, Skeeter’s excusing a democrat, there’s a news flash!!
Comment by Craig Monday, Apr 10, 06 @ 7:40 am
Skeeter,
When you say government should be run like a business, do you mean like Walmart? Like organized crime? Like Enron? Like the airline industry? Like the dot.com businesses a few years ago?
Comment by Budget Watcher Monday, Apr 10, 06 @ 7:43 am
Here is the real problem. First, Alexi says he wasn’t involved, now it is shown that he was. Beyond loaning money to mobsters, he lied about it. Just the quality the voters want in a State Treasurer.
Comment by here and now Monday, Apr 10, 06 @ 7:46 am
What Alexi needs to do when he becomes Treasurer: Start the first official state-subsidized murder-for-hire business. $10,000 per bullet… He can farm those jobs out to his friends he loves to loan money to… and if they miss the first 4 times, the state just made $50,000… how about that for a return on your money…
Comment by Lovie's Leather Monday, Apr 10, 06 @ 7:56 am
To quote Flounder from Animal House: “This is great!” Can’t wait to hear all the future explanations and spins. “I thought it was for condos”, gotta use that one myself. It’s perfect. Straight off the Bob and Tom bit with the engineer blowing the train horn: “Is that legal?”…”We don’t know yet”. This guy is chum.
Comment by zatoichi Monday, Apr 10, 06 @ 8:04 am
What is the best practices industry standard for lending money to mob figures and how are they (mob figures) defined. Would, say, the Northern Trust have lent to this guy? Other (presumably, always presumably) reputable banks?
Without knowing that, we can’t know how significant this info is in evealuating Alexei.
I’d be more concerned about his youth and inexperience in government than about the mob loans. It seems unlikely that he’s going to be giving a lot of state of Illinois money to mobsters, especially after all this press.
Good campaign bit for JBT though. Dems and mobsters.
Comment by Cassandra Monday, Apr 10, 06 @ 8:06 am
“‘I thought it was for condos,’ Giannoulias said of the waterfront property that secured that loan.”
Looks like Alexi is learning the play-book pretty quickly: ‘I’m not corrupt, I’m just incompetent.’
Comment by gopartisan Monday, Apr 10, 06 @ 8:22 am
Mock all you want, he’s still going to win.
Comment by Anonymous Monday, Apr 10, 06 @ 9:04 am
Skeeter,
What makes you think the state making loans to criminal enterprises with taxpayer money is a legitimate business interest?
You seem to think you have a point. You’re wrong.
Comment by Veritas Monday, Apr 10, 06 @ 9:07 am
I’m not a banker, BUT I don’t necessarily agree with Mr. Alexi’s response - “We look at the commercial viability of loans, and that’s where we make our credit decisions”
Again, I’m not a banker BUT isn’t it the Bank’s RESPONSIBILITY to attempt to vet-out these type of criminal associations per the onerous background requirements associated with the Patriot Act? Thoughts anyone?
I understand that Barrack is Mr Teflon, BUT how do these latest revelations NOT have an impact in HIS future campaigns? I mean being associated with a Banking Empire that has these type of business arrangements.
Afterall, wasn’t Broadway Bank &/or its principals bankrolling a good portion of his senatorial campaign?
It’ll be interesting how this plays out not just in this campaign, BUT future campagins as well…
Comment by The Playa's Club Monday, Apr 10, 06 @ 9:10 am
I always thought this kid was in way over his head, and was a tool for larger, more powerful interests, but he is stunning even me.
Comment by Bubs Monday, Apr 10, 06 @ 9:11 am
Ok, I know putting politics aside is impossible, but I am also curious what criteria banks use to determine who to give loans to other than financial information. Should banks be required to do criminal background checks on every applicant? If you have any previous criminal history, should the bank deny you the loan? I’m not saying the state should seek to cut financial deals with mobsters, but I’m not sure the “crook by association” charge should stick here. The state of Illinois allows gambling on riverboats. Why is it a big deal if his bank loaned money for a casino? It is the Tribune afterall. The same paper that defended George Ryan as long as they could. Alexi did screw up in his answer. No doubt about it. That’s a campaign ad already in the works. But there’s more than enough overspin from the Republicans, er, I mean Tribune, here as well.
Comment by loan moan Monday, Apr 10, 06 @ 9:24 am
It is obvious that Mike Madigan is conferring with Barak Obama to find a honorable way for Alexi to drop out before November. He would be a horrible drag on the ticket especially with Blagoevich’s ethics problems also. Christine Rodano is a strong candidate, and the Dem’s know it.
Comment by Barnaby Monday, Apr 10, 06 @ 9:34 am
Answers to loan moan:
I. Criteria the banks are supposed to use or REQUIRED to use is per the Patriot Act. Contact your local Fed Office or bank to find out more info. However, from what I understand there are many conditions and burdensome regulations that have been placed upon banks per the Act to hamper criminal enterprise.
II. Answers to your Q’s regarding background checks, criminal history, mobsters, etc. - it is my understanding that these are supposed to be vetted per the Patriot Act.
III. Why is it a big deal if his bank loaned money for a casino? Again, I don’t think its the real estate that was invested-in that makes this a big deal (although casinos have been known to act as laundering vehicles), I think its the deal along with the trackrecords & backgrounds of the investors. For example, if the Little Sisters of the Poor were to invest in the casino, its a non-issue provided the nuns weren’t involved and CONVICTED in past illegal dealings.
Comment by loan moan go groan Monday, Apr 10, 06 @ 9:52 am
I expect more from the Democrats than this. Remember when the Democrats ran guys like Simon, Stevenson and Quinn? You know, people who believed in doing their best, setting high standards? The Democrats had a good reputation, at least until 2003 when on his first day on the job, His Virginity, tried to sell us out to Comed.
With guys like Blagojevich and this mope on the ticket, just how different are the Democrats from the Republicans?
If this election is to be chosen between crooks, I’ll take the competant ones over the crooks holding office now. It has been one giant amateur hour!
Comment by VanillaMan Monday, Apr 10, 06 @ 10:02 am
The following was in Crains today. I don’t think they got the best rate of return on this loan.
Real estate developer Antoin “Tony” Rezko’s plan to extricate himself from another soured deal has hit a snag.
Unable to get a 24-story River North condominium tower off the ground, Mr. Rezko and partner Daniel Mahru decided last year to sell the development site at Chicago and Hudson avenues. The problem: They signed a contract to sell the property for $9 million, but they owe the property’s lender, Chicago-based Broadway Bank, about $12 million.
Comment by anon Monday, Apr 10, 06 @ 10:06 am
I hope that when you say “the democrats” you are talking about the democratic voters not the state central committee who slated the fully vetted Paul Mangieri for treasurer.
It looks like a landslide for Radogno.
Comment by The original Bill Monday, Apr 10, 06 @ 10:14 am
Excuse me, but where on the standard mortgage application does it ask a person if they’ve got a criminal record?
Giannoulias needs help with his talking points, but the bottom line is that from what I can tell, Uptown Bank didn’t do anything differently than any other bank would have done.
I don’t think the Patriot Act would apply to loan sharks and pimps, so maybe our banking laws do need to be changed, to red flag transactions. But that’s the federal government’s job, not the State Treasurer.
Unfortunately for Giannoulias, he can expect more sensational journalism from the Chicago Tribune over the next 6 months, since they’ll say anything to help get moderate Republicans elected.
Remember when they told us there was no connection between George Ryan and Licenses for Bribes?
Comment by Yellow Dog Democrat Monday, Apr 10, 06 @ 10:22 am
Radagno has plenty of ammo for the general now. I think she would have had a tougher time defeating Mangeiri - whatever his name was
Comment by scoot Monday, Apr 10, 06 @ 10:23 am
I don’t what you F&*^*% bloggers are talking about…I got bounced from the Bank many years ago.
Say hello to my little friend!
Comment by Tony Montana Monday, Apr 10, 06 @ 10:23 am
Hey someone check with FL and SC gaming officials to see if these outfit guys are the kind they want running their casinos?
Maybe this guy is out there to keep Blowgoyovich out of the news?
Comment by HeKnowsBarack Monday, Apr 10, 06 @ 10:24 am
“…the best rate of return for taxpayers to create jobs.â€
Does this include the juice payments? And think of how many bag guys can get on the payroll of the state with good benefits, don’t worry about the pension implication, as soon as their convicted they loss it. Great return for us.
Comment by Frustrated GOP Monday, Apr 10, 06 @ 10:32 am
So I agree with those who take issue with the fact that this guy is part of these loans. He is right that banks need to look at the viability and profitability of loans, but where does that end? If a guy says he will pay you a 10% premium if you help him launder his money through loans and repayments, is that okay? A young and brilliant banker should know the ethical side of his business…Alexi obviously does not.
One of the points that I think is being overlooked is how generally unqualified this guy is. His claim that he wasn’t involved in these loans includes a statement that he was in law school until 2002…and no one flinches? Being relatively young myself, I love seeing young politicians get a chance…but this is unreal. This guy has been out of school and at the bank for less than 4 years and we think he is ready to run this state’s finances? Daddy gives him a VP position and we think he is some brilliant kid ahead of his time? God help us…
By the way, look at his website and his “about Alexi” section. Says he is a “community banker to be more precise.” That’s just funny…community banker…what community is that? I know we don’t have that kind of community bank where I live. Seriously, that combined with the Trib article were the humor for the week.
Comment by the wonderboy Monday, Apr 10, 06 @ 11:42 am
NEWSFLASH…YDD excuses another Democrat, shocking!!
Comment by Craig Monday, Apr 10, 06 @ 11:52 am
Alexi is a self-made man.
It’s easy to throw stones, but he and his family are good people.
Comment by Self-made Man Monday, Apr 10, 06 @ 12:05 pm
Sellf-made,
What is a “good” person?
Comment by Veritas Monday, Apr 10, 06 @ 12:18 pm
Why do some many people on this blog think everytime there is bad news for a campaign it means doom for that candidate? Thats just not how campaigns/elections work. If that was true noone would be elected!
Comment by The Hankster Monday, Apr 10, 06 @ 12:37 pm
He’s not self-made.
He’s silver spoon.
All this exercise has proved is that Obama is for sale. What a waste.
Comment by phocion Monday, Apr 10, 06 @ 12:48 pm
He sure is self-made…just like that other self-made politician…George W. Bush.
Comment by the wonderboy Monday, Apr 10, 06 @ 1:38 pm
I think I’ve heard this before; can’t you just hear Alexi’s Dad saying: “I work my whole life - I don’t apologize - to take care of my family, and I refused to be a fool, dancing on the string held by all those bigshots. I don’t apologize - that’s my life - but I thought that, that when it was your time, that you would be the one to hold the string. Senator Corleone; Governor Corleone.”
Comment by Anon Monday, Apr 10, 06 @ 1:45 pm
All right, I voted for Mangieri. He was a military veteran, a self made man who worked his way through college and law school. An ethical State’s Attorney who prosecuted both Democrats and Republicans alike for criminal wrongdoing.
A father to 12 children who defended a women’s right to chose and advocated fairness towards GLBT individuals. A tremendous charasmetic individual if you ever met him. What did he not have that Alexi G. had - 2.5 million dollars and Barack, I guess.
Comment by i voted for mangieri Monday, Apr 10, 06 @ 2:10 pm
I think Alexi’s a dreamboat! Who cares about all these pesky loan details anyway.
Comment by Jerry's Cousin Tina Monday, Apr 10, 06 @ 3:24 pm
maybe Alexi hasn’t responded in the most artful way, but each such article i’ve read has included the deeply buried statement that Broadway Bank has not been accused of any wrong-doing.
Alexi is correct in implying that the Bank’s duty is to maximize the return on the shareholders’ investment. No one has suggested thay have done this outside the law, and, please note, they are operating in one of the most heavily regulated businesses.
i can’t imagine that if one had all available info on all the principals of all the entites that have borrowed monsy from any bank, that one would uncover stuff like this and more.
maybe the real story is that this is all there is after more than 30 years of bank operations!
Comment by corvax Monday, Apr 10, 06 @ 3:26 pm
Corvax is right. And when he uses the term duty, that means “fiduciary obligation.”
I’ll agree that our corporate regulations need to be changed to balance the public interest more strongly against investor interests. But absent an existing law that says that no bank may loan money to someone with a criminal record, all Giannoulias is guilty of is following the law.
What we SHOULD be asking is why South Carolina casino regulators didn’t have a problem with convicts being part owners in a casino operation. I don’t know about S.C. law, but that’s not cricket here in Illinois. But again, it’s the job of gaming regulators, not bank officers, to vet these purchases.
The good news for Giannoulias is the Tribune’s pogrom comes at a time when the voters aren’t paying attention. Broadway Bank has time to do O.R. on itself, find any other skeletons, ask regulators to take a look at all of them, and dump every potential p.r. bomb at the same time, accompanied by letters saying Broadway Bank did nothing wrong.
Comment by Yellow Dog Democrat Monday, Apr 10, 06 @ 4:00 pm
All he is guilty of? Maybe in the criminal world, but this is politics. You know that in politics guilt is determined by bad judgment, questionable relationships, responses without thought and perception of wrong doing. Based on that…I think he is guilty of a little more.
Comment by the wonderboy Monday, Apr 10, 06 @ 4:37 pm
YDD, sorry, got to call you out on your use of the utterly inappropriate word “pogrom” to characterize the Trib’s coverage of young Mr. Giannoulias.
Let’s review the definition of pogrom: An organized, often officially encouraged massacre or persecution of a minority group, especially one conducted against Jews.
Ok, that’s what a pogrom is. Not quite the equivalent of a newspaper article that looks at some of the questionable business dealings of a guy who wants to manage the state’s bank accounts.
Also: why the reflexive defense of the guy? Just cause he’s a Dem? You aren’t on his payroll are you?
Comment by FDR's Ghost Monday, Apr 10, 06 @ 5:01 pm
When is a reporter going to ask Barack, Mr. Ethics in Washington, if he stands by his endorsement of Alexi?
Comment by Anonymous Monday, Apr 10, 06 @ 5:21 pm
Barack has not been seen in the same area code as Alexander since that announcement press conference. My guess is he already ducking.
Maybe the LynnSweetBlog could ask this questions for us.
Comment by HeKnowsBarack Monday, Apr 10, 06 @ 6:06 pm
Well I don’t tihnk this is a big deal, when you see who Alexi’s appointment is? Ms. Radagno ’s husband is suspected in unsavory deals, and Ms. Ragdagno is from the notorius Western Suburbs, where organized crime figures tend to live!
The tribune is just trying to smear this kid, because he refuses to be part of the “combine” of Illinois Politics!
Alexi is truely independent and can think on his feet, and should not be judged on his family’s bussiness!
God knows if we looked into everyone’s family bussiness we would find skeleton’s in their closets!
I think the Tribune should investigate Radagno’s political connections with Eddie Vrdolak,John Stroger,Maureen Murphy, Ron Serpico,Jim Gomelski,Al Carr and Tom Walsh, before they try to discredit him!
Comment by GET REAL Monday, Apr 10, 06 @ 6:59 pm
GET REAL: you better GET BUSY getting those ties about Rodogno out soon. Your boy Alexi is starting to look awful. Don’t expect the Trib to do it…better use that $$$$$ we saw spent during the primary.
Comment by Minion Monday, Apr 10, 06 @ 7:30 pm
Speaker Madigan is probably finding a replacement candidate as we blog tonight.
James Clayborne for State Treasurer?
Comment by anonymous Monday, Apr 10, 06 @ 9:54 pm
Sounds to me like his brother made those deals and even if he knew about them it probably wasn’t his call. We’ll never know, but I respect the guy’s spine. Find me another politician in the state that would stand up and take his licks from the media instead of throwing his brother under the bus in public. You all might see a mope, but I think I am looking at some character.
Comment by SLOW DOWN Monday, Apr 10, 06 @ 10:31 pm
Hey
if these are these the same genius’s that kept saying this stuff would lead to Paulie Walnuts winning the primary…(He got 39 percent) The Alexi camp must be feeling good then right about now
Comment by anon Monday, Apr 10, 06 @ 10:51 pm
Get Real-
I can’t help but comment on your post. For starters, who is “Alexi’s appointment?”
As for looking into everyone’s family business and finding skeletons…I think that most would disagree. Actually, I would imagine that the VAST MAJORITY of people don’t have skeletons anywhere close to those Alexi is dealing with now. Not sure where you grew up, but it must have been a in a world incredibly different from mine.
Comment by the wonderboy Tuesday, Apr 11, 06 @ 5:26 am
I’ve had the chance to meet Alexi and I think he is a stand up guy. His business made some mistakes however I think the real problem is his staff. Where are his PR people to help out? I know at a few of his primary events he just had some ditzy kids playing politics, now its the general election. Dems lets get him an adequate staff and help this guy out.
Comment by anon123 Tuesday, Apr 11, 06 @ 6:58 am
wonderboy, no one’s pointed to skeletons in Alexi’s closet, any skeletons may be in the bank’s customer’s closet. no one has suggested any loans were made improperly, say, by taking illegal collateral. have a good day.
Comment by corvax Tuesday, Apr 11, 06 @ 7:33 am
Dear anon123
What staff? He fired them all after the primary.
Comment by Lonely Wheaton Dem Tuesday, Apr 11, 06 @ 9:04 am
Actually, corvax, someone did point to skeletons…which is why I responded. Not sure what you were reading.
I said good day.
Comment by the wonderboy Wednesday, Apr 12, 06 @ 2:42 pm