Regulators Clamp Down on Giannoulias' Broadway Bank

January 27, 2010 - Chicago - This is a developing - and long-anticipated - story. It involves Alexi Giannoulias, an Illinois Democrat who is running for U.S. Senate. Giannoulias is currently the Illinois State Treasurer

UPDATE, 2010-01-31: Meister Quits, Now Supports Giannoulias for Senate (Crain’s)Broadway Bank, the troubled Chicago lender owned by the family of Illinois Treasurer and U.S. Senate candidate Alexi Giannoulias, has entered into a consent order with banking regulators requiring it to raise tens of millions in capital, stop paying dividends to the family without regulatory approval, and hire an outside party to evaluate the bank’s senior management. More at Crain's Chicago Business... 

The story of the Giannoulias family, Broadway Bank and its deep ties to the Democrat Political Machine is multi-layered and deep. William Ayers, Barack Obama, and Tony Rezko - to name just a few - have all dealt with the Broadway Bank in Chicago, run by the [allegedly] mob-tied Giannoulias family, and it may have been Ayers or a Giannoulias family member who brought Obama's name to the attention of Rezko.) (Source: Mens News Daily, Oct. 2006

Today's Crain's Chicago Business report also states that the "Jan. 26 consent order with the Federal Deposit Insurance Corp. and the Illinois Division of Banking comes less than a week before Mr. Giannoulias, Broadway’s chief lender until 2004, must face voters in the Democratic primary for the Senate seat previously held by President Barack Obama." 

Mens News Daily noted that around "1993 (possibly later), Obama buys a townhouse in Chicago, with a loan provided by the city's Broadway Bank. His down payment is $110,000. The bank, owned by the politically-connected Giannoulias family, is alleged to have long-standing mob ties, as well as connections with Tony Rezko and William Ayers. Allegedly Obama gets a "sweetheart" deal on the townhouse, ostensibly in exchange for future favors. (Obama later endorses Alexi Giannoulias when he runs for Illinois State Treasurer.)" As we said, this story is developing and deep.