Illinois Republican Party

Day 11: Giannoulias Changes the Rules on Broadway Bank Questions
2/8/2010

“If I’m fortunate enough to make it out of the primary, we can have that conversation.” - Alexi Giannoulias, Associated Press, 1/29/10

"Asked prior to last Tuesday’s primary election about the bank’s questionable loans, Giannoulias said he would discuss the matter after the election. But Giannoulias said Sunday the questions he now faces are the same ones he answered while running for treasurer four years ago." - State Journal Register, 2/7/10

WASHINGTON – After promising local and national reporters he would answer questions surrounding his role in the near-collapse of Broadway Bank and the bank's recent FDIC consent decree, Democrat Senate candidate Alexi Giannoulias (D-IL) yesterday refused to answer any questions on the matter claiming he had already answered questions during his run for State Treasurer.

Just before the February 2nd primary, the FDIC entered into a consent decree with the Giannoulias family's Broadway Bank - ordering the family to raise more than $50 million. The order came after reports that Giannoulias and his family removed $70 million in profits from the bank just before the real estate market collapsed - and that many of the failing loans and investments were authorized by Giannoulias while he was the bank's Chief Loan Officer. (Crain's Chicago Business, 1/27/10)

Giannoulias immediately came under attack by his primary opponents, David Hoffman and Cheryle Jackson:
Another candidate in next week's Democratic primary for the Senate seat, Cheryle Jackson, called on Giannoulias to withdraw from the race. She said the bank controversy has "made him unelectable, probably in the primary and certainly in the general [election]." (Chicago Sun-Times, 1/27/10)
Hoffman's campaign manager, Michael Powell, said the bank's risky loans and insider dividends caused "a likely bailout and takeover by the FDIC." He called it "further evidence of what a disaster Mr. Giannoulias would be as the Democratic nominee for Senate." (Chicago Sun-Times, 1/27/10)
"The reason that this Broadway Bank story and revelation is of such significance now is because it goes to the heart of matters of job performance and character," Senate candidate David Hoffman said at a news conference. (NBC 5 Chicago, 1/29/10)

When confronted by Chicago and national media on January 28, 2010, Giannoulias responded: “If I’m fortunate enough to make it out of the primary, we can have that conversation.” (Associated Press, 1/29/10)

Since winning the primary, however, Giannoulias changed his tune and continues to dismiss questions.

When asked direct questions on FOX News Chicago last week, the Senate hopeful refused to answer any direct questions.

Yesterday, the Springfield Journal-Register reported:
Giannoulias, who appeared with Durbin at his Springfield home this afternoon, again sought to distance himself from questions surrounding financially shaky Broadway Bank, which is owned by his family and where he was a senior loan officer before becoming treasurer.
Recently, the bank entered a consent decree with state and federal regulators that requires it to raise new capital, sell troubled assets and improve management.
Asked prior to last Tuesday’s primary election about the bank’s questionable loans, Giannoulias said he would discuss the matter after the election. But Giannoulias said Sunday the questions he now faces are the same ones he answered while running for treasurer four years ago.

Given Alexi Giannoulias' blatant attempt to cover-up his role at the Broadway Bank, the National Republican Senatorial Committee (NRSC) issued the following suggested questions for reporters to ask Giannoulias today:
• On January 28th you told reporters you would answer questions about Broadway Bank if you won the primary - and yesterday you claimed you didn't have to answer any questions about Broadway Bank because you already did. Does this mean you misled the voters in order to win the primary election?

• Did your decision to remove millions of dollars from Broadway Bank lead to the bank’s now-brink of collapse? How many of the bank's failed investments and real estate holdings were acquired during your time as Chief Loan Officer? Will you help to recapitalize the bank? (Crain’s Chicago Business, 02/01/2010)

• Did you authorize $15.4 million in loans to Michael “Jaws” Giorango – a crime boss that ran prostitution rings and engaged in illegal gambling? Do you think it's hypocritical to condemn Scott Lee Cohen's involvement with a prostitute when you authorized loans to a known mob-linked pimp? (Chicago Tribune, 02/05/2010)

Learn more about Giannoulias’ record by visiting the NRSC’s new Web site (see link below)

NRSC website about Giannoulias

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