So it’s kind of fascinating to hear the state treasurer of Illinois claim he knows nothing, nothing! about the almost twenty-three million dollars that his family bank lent a notorious Blagojevich crony who was under federal investigationat the time.
Through a spokeswoman, Giannoulias says he knew nothing about the $22.75 million loan to Riverside District Development until reporters contacted him.
“Alexi left daily operations of the bank in September of 2005, months before this loan was made,” says Kathleen Strand of his campaign staff. “He had no knowledge of it, and his name is not on any documents related to the loan…
Democratic U.S. Senate candidate Alexi Giannoulias says he’s swearing off campaign contributions from lobbyists, but not all lobbyists.
Giannoulias, the state treasurer, promised at the start of his Senate campaign a year ago that he wouldn’t take contributions from corporate lobbyists or political action committees. But that proscription applies only to federal lobbyists and PACs. He has taken money from state-registered lobbyists. He says there’s a difference: Since he’s running for a federal office, a state lobbyist can’t try to influence him if he wins.
From chicagotribune.com: Democratic U.S. Sen. Dick Durbin, Giannoulias’ campaign chairman, expressed concerns over a lack of White House commitment to the candidate to Washington-based Politico after a recent meeting with President Barack Obama’s chief of staff, Rahm Emanuel. Durbin quickly tempered his comments, and the White House offered a tepid statement that “the president intends to help Democratic candidates in Illinois up and down the ballot.”
Full story here – as for the Rochester treatment: well. Those familiar with Jane Eyre will no doubt remember how wonderfully that particular strategy worked.
The bank is open now — but the worker says they’ve been told at close of business “that’s it.”
Black curtains have been put up today. You can’t see in.
The Giannoulias campaign says the curtains are to “block the sun”, although the sky is overcast and rain is predicted all weekend.
(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. But the big question is: what will Chicago’s pimps and bookies do with one less financial institution that’s sympathetic to their unique business needs?
The family of Democratic U.S. Senate nominee Alexi Giannoulias stands to collect more than $10 million in federal tax refunds even if its Broadway Bank fails, which Mr. Giannoulias said this week is likely.
A $75-million loss at the struggling lender last year generated tax benefits potentially worth between $12 million and $15 million to Mr. Giannoulias, his two brothers and his mother. As the sole owners of a subchapter S corporation that controls $1.2-billion-asset Broadway, they pay the taxes on the bank’s income and reap tax deductions on its losses.
The possibility of family members pocketing millions in tax refunds as Broadway slides toward insolvency and federal receivership is likely to fuel more controversy for Mr. Giannoulias, who is already under fire for his role in the bank’s downfall.
(Via Hot Air) Of course, not being in a rich banking family linked to Chicago’s culture of political corruption… oddly enough, that’s precisely the kind of work that I can’t get. And then there’s this little gem:
Asked whether he would advise his family to put the tax refunds back into the bank to help recapitalize it, Mr. Giannoulias said, “We’ll do everything we can to keep the bank going. . . .You’ll have to ask management of the bank what the best course of action is.”
Translation: “No.” Mind you, if they took this money and added it to the 70+ million in dividends that the Giannoulias family pulled in from the failing bank from 2006 to 2008, the bank would probably be able to avoid closing. But that would hurt them; so better to let the bank fail, let the FDIC take it over, and let the taxpayers take the blow. Much better, all around.
After all, the Giannoulias family got their refund.