Southtown Star: Giannoulias Can’t Remember Miami?
“On Thursday, [Giannoulias] couldn't recollect a single detail about his visit to the hotel - a hotel which landed on Florida law enforcement's radar in 2002 after a nationwide prostitution sting.” – Southtown Star, 10/17/10
Giannoulias 'offended and hurt' by mob questions By: Kristen McQueary Southtown Star If U.S. Rep. Mark Kirk (R-10th), of Highland Park, wins the race for U.S. Senate, he can thank House Speaker Michael Madigan, the chairman of the Democratic Party of Illinois. Much of the dirt tossed at Kirk's opponent, state Treasurer Alexi Giannoulias, originated in early 2006 when Giannoulias first ran for statewide office against a Madigan-backed candidate. Giannoulias' connection to Michael "Jaws" Giorango, a convicted bookie, was thrust to the front pages after the speaker's campaign team dug up the slop. And the front page is where the headlines have remained. But should they? As a member of the media, I regularly question our tendency to glom on to a story. Sometimes, we need to hit the "refresh" button, to re-examine on a macro level the importance of our pursuits, and to make certain our excruciating standards of public officials are justified. We want them to answer questions profusely, completely. And then we skewer them if they make a mistake. In Giannoulias' case, it's a mixed bag. I want to move beyond the Giorango story, but his inability to be forthright keeps the embers burning. Reporters repeatedly have asked Giannoulias to be transparent about his bank's relationship to Giorango, a reputed crime figure, and other unsavory customers in light of revelations the bank loaned money to a few convicted felons. The majority of Broadway Bank's activity was above board, but a few mobbed-up clients create quite a sweat lodge for someone running for U.S. Senate. Giannoulias' answers since 2006 have been curt and incomplete, including during a nationally televised "Meet the Press" debate Oct. 10 - and during an editorial board meeting four days later at the SouthtownStar. As we asked questions about Giorango, he turned the tables on us, saying he found the line of questioning "offensive and hurtful," as if we should feel ashamed for asking him to clarify how his family bank ended up as lender to felons. The guy is running for U.S. Senate, one of the country's most powerful posts. Giannoulias has admitted meeting with Giorango a few times at the bank, years ago, and inspecting one of Giorango's Miami hotels in 2006 as standard operating procedure when approving a loan on the property. But that's about it. On Thursday, he couldn't recollect a single detail about his visit to the hotel - a hotel which landed on Florida law enforcement's radar in 2002 after a nationwide prostitution sting. Banks don't do background checks on people who seek loans. How could he have known, he insisted. "Don't you get it?" Giannoulias snapped at one point. Frankly, I found it offensive he didn't want to get specific when he's running for U.S. Senate, and I told him so. It ain't dog catcher, after all. At the same time, I can understand his instinct to lash out and feel utter exasperation at the runaway train the story has become. I can only imagine his disgust at being cast as a mobbed-up criminal in Kirk's campaign ads. He is not. But as journalists, what we want first and foremost is honesty. We don't want to have to ask a question four different ways to get an answer, and on this topic, Giannoulias has fumbled. Do I think a convicted bookie who banked at Giannoulias' family business should determine your vote for U.S. Senate? Absolutely not. But when his own campaign characterizes Kirk as a "liar," it's only fair game to expect up front answers from Giannoulias. Click here to read the full article. THEY SAID IT – Giannoulias: “I’m gonna speak my mind. I’ve always done it.”Seriously?
Shot… Illinois Radio Network, 10/14/10: "As I've said if I disagree with Senator Durbin, if I disagree with Senator Harry Reid, if I disagree with the president, I'm gonna speak my mind. I've always done it," Giannoulias told reporters while he greeted commuters at a Chicago train station. Upshot… Crain’s Chicago Business, 9/20/10: I asked his campaign for a few examples of where he differs from party leadership and orthodoxy, and they gave me a handful of issues on which he's more liberal than Senate Majority Leader Harry Reid and/or President Barack Obama, including gay marriage, gun-control and the use of military force in Iraq. Double Upshot… Chicago Tribune Editorial, 10/7/10: Ask Giannoulias what federal spending bill of the last two years he would have opposed and, after some painful-to-watch evasion, he cannot name one. Ask him where he most strenuously disagrees with his party's policies and watch his intellectual gears grind as he grasps for anything controversial on which he disagrees at all. Chicago Tribune: What Alexi knewEditorial His damning non-denial about loans to criminals ... Confronted with these embarrassing facts, the candidate has squirmed to put the best face on them. "If I knew then what I know now, these are not the kind of people that we do business with," he said Sunday. But when Gregory asked, "Did you know that they were crime figures that you were loaning to?", Giannoulias couldn't fudge his way to safety. "I didn't know the extent of their activity," he said. That is a roundabout way of saying: "Yes." It's probably true that Giannoulias was not fully briefed on their illegal activity, which is the sort of thing felons rarely publicize even to their financial enablers. But he and his colleagues did know — or should have known — enough to show these clients the door. Not only had Giorango served prison time in the 1990s for his involvement in illegal bookmaking, but he and Stavropoulos had been convicted, in 2004, of new felonies for which they later served prison time. Those crimes were not enough to get them a rejection from Broadway Bank. The two continued getting loans until September 2005. That was the same month that Giannoulias says he stopped his involvement in "day-to-day" operations of the bank as he got ready to run for state treasurer. In other words, it wasn't till he left to run for office that the bank cut off these customers. Of course, there's still this question: How can Giannoulias say he left in 2005, but report to the IRS that he worked hundreds of hours in 2006, thereby qualifying for a $2.7 million tax deduction? Giannoulias tries to minimize the significance of all this, but there is no way to deny the central fact: While he was a loan officer at the family bank, the bank chose to lend money to known felons connected to organized crime. Maybe he didn't know the "extent of their activity." But a conscientious banker wouldn't have needed to. Click here to read the full article. The Southern: Ups and Downs
Southern Illinoisan October 8, 2010 Thumbs down ... to a decision by the Alexi Giannoulias campaign team against participating in a debate planned for U.S. Senate candidates Oct. 21 in Carbondale. Democrat Giannoulias, the state treasurer, was invited in early August to participate with Republican Congressman Mark Kirk and Green Party candidate LeAlan Jones. The debate's sponsors, The Southern Illinoisan, WSIU-TV and the Paul Simon Public Policy Institute at SIUC, explained participation would be limited to candidates of established parties (just the Republicans, Democrats and Greens in Illinois) or those candidates scoring at least 5 percent in the latest public opinion polls. Only Gianoulias, Kirk and Jones met the criteria, but the Giannoulias campaign staff insisted that Libertarian Michael Labno be included in the debate - or Giannoulias would not participate. Such an ultimatum might work in backroom politics, but the debate sponsors scuttled the event instead of letting a candidate rewrite the rules to his satisfaction and cloud the integrity of the event and sponsors. As a result, the losers are Illinois voters, who will be deprived of a statewide broadcast of the debate planned by WSIU-TV, live blogging throughout the debate on the Illinois Politics 2010 website and an on-demand video of the debate on the Illinois Politics 2010 website. What a pity. Click here to read the full article.
Chicago Sun-Times Financial Columnist Terry Savage Blasts State Treasurer on Bright Start College Savings
Listen to the full interview here Key Excerpts: Starting at 5:30: “Everything [Giannoulias] said about [Bright Start’s] losses was an absolute, outright, disingenuous statement, if not a lie. The fact of the matter is, Bright Start’s losses in this one safe, alternative fund had nothing whatsoever to do with the stock market or the economy… “…Similar funds that were investing in similar safe instruments actually made money during this period as money rushed to the safe alternatives that they invested in. But these guys invested in derivatives and all kinds of wild speculations that hit this one fund particularly hard…” “…The reason it was only 50 cents on the dollar is, in my opinion, was just enough so that lawyers wouldn’t take on the case and sue them cause there wasn’t enough money in it for them to sue them.” Starting at 7:00: “And here’s where I want to nail Alexi to the wall, I’ve done it personally and in my column. Why is Oppenheimer Funds which basically acknowledged it had this horrible thing happen under their management, why are they still managing funds in Bright Start? I spoke to a number of lawyers who said the very fact they did this could invalidate their contract they have with the state. Illinois under Alexi should have kicked Oppenheimer out as one of the several managers under Bright Start.” Fox News: Top Giannoulias Adviser Lobbied for Auchi Development Project
Giannoulias Told Chicago Sun-Times He Never Knew Broadway Bank Made Loan to Rezko and Auchi for Same Development Project in 2006
How Can Alexi Claim He Didn’t Know about the Loan?
Washington (FOX) -- The race to fill President Obama's old senate seat in Illinois is neck and neck in the polls and boiling over with allegations and innuendo. The race is tied, according to a Rasmussen poll conducted on August 9. The automated phone survey shows Republican Congressman Mark Kirk and Democrat Alexi Giannoulias, the state treasurer, both at 40 percent. Giannoulias has been plagued by allegations of scandal from the start in connection with his days at Broadway Bank, a now defunct institution that was run by the Giannoulias family. The latest wrinkle has the Kirk camp attempting to link Giannoulias with Saddam Hussein. Kirk aides say Broadway Bank, the now defunct institution run by Giannoulias' family, made a loan to an Iraqi businessman named Nadhmi Auchi who they claim was once connected to Saddam Hussein The Kirk camp says in 2006 Broadway Bank loaned $22.75 million to a company called Riverside District Development, which has ties to both Auchi and Tony Rezko, the Chicago real estate developer convicted of fraud and money laundering in 2008. Kirk aides also point out that a close Giannoulias associate, Endy Zemenides, was a registered lobbyist for Riverside District Development, while also lobbying for the Giannoulias Enterprises, which is owned by Alexi's family. Zemenides served on the transition team when Giannoulias became Illinois state treasurer and describes himself as a senior advisor to Alexi. The Kirk camp paints all this as an example of the Chicago-style, pay to play politics that Giannoulias has promised to put an end to. “Alexi Giannoulias continues to mislead voters about Broadway Bank’s loan to Nadhmi Auchi and Tony Rezko,” Kirk spokesperson Kirsten Kukowski said. “We are deeply troubled that Alexi Giannoulias’ closest political adviser lobbied on behalf of Nadhmi Auchi’s development project – the very same project Broadway Bank helped finance.” Read More Giannoulias’ Voting DemographicThe State Journal-Register, Chris Britt, April 6, 2010
Chicago Tribune, Steve Chapman, April 2, 2010
It's hard to know what to conclude. Maybe he was a major player at the bank, in which case he bears some responsiblity for its unsavory associations. Or maybe he was an inexperienced cipher, in which case he had no real preparation for serving as treasurer -- or, by implication, U.S. senator.
And there lies Giannoulias' real problem: Voters can believe the first or they can believe the second. But whichever version they accept, they have a good reason to vote against him.
Boston Blackie’s owner ordered held on $2M bondChicago Breaking News Center, Matthew Walberg, April 2, 2010
He decried the decision to charge Giannis -- a supporter of U.S. Senate candidate Alexi Giannoulias who has done business with Broadway Bank and Trust, Giannoulias' family-owned bank - as politically motivated, though he did not elaborate.
"That's the big elephant in the room," Durkin told Portman. "I submit to you that...the real reason we are here is because of Broadway Bank and the candidacy of Alexi Giannoulias. Let's not kid ourselves about why we're here."
Giannoulias’ family bank loans to reputed mobsters draw fireDaily Herald, Joseph Ryan, April 2, 2010
The lending came at a time both men were set to serve prison sentences. Stavropoulos had a two-year sentence for running a bookmaking ring across several states, according to reports, and Giorango served six months intermittent confinement for promoting a nationwide prostitution scheme.
Broadway Bank's loans to Giorango and Stavropoulos have been publicly known for years, frequently confronting Giannoulias on the campaign trail. But the details behind them have not previously been revealed.
$20 million in loans to felons: Broadway Bank lending, when Alexi Giannoulias was senior loan officer, detailedChicago Tribune, David Jackson, John Chase, Ray Gibson, April 1, 2010
The family bank of Democratic Senate candidate Alexi Giannoulias loaned a pair of Chicago crime figures about $20 million during a 14-month period when Giannoulias was a senior loan officer, according to a Tribune examination that provides new details about the bank's relationship with the convicted felons.
Broadway Bank had already lent millions to Michael Giorango when he and a new business partner, Demitri Stavropoulos, came to the bank in mid-2004. Although both men were preparing to serve federal prison terms, the bank embarked on a series of loans to them.
Giannoulias’s Shady DealingsThe Weekly Standard, Daniel Halper, March 19, 2010
Alexi Giannoulias is no stranger to controversial business relationships: As chief loan officer at his family’s Broadway Bank, the Illinois Democrat running for President Obama’s old U.S. Senate seat authorized loans to convicted organized crime leaders like Michael “Jaws” Giorango (a pimp and bookmaker) and Demitri Stavropoulos (an illegal gambling operator). Giannoulias also serviced loans for convicted felon Tony Rezko....
Giannoulias, currently the state treasurer of Illinois, has some disturbing, if indirect, business connections to Iran. ... That’s right. The same year Natixis held $117 million in deposits from the Central Bank of Iran, the Giannoulias family took out a $21.5 million loan.
Giannoulias faces more woes in raceAssociated Press, March 12, 2010
Democrat candidate Alexi Giannoulias faced a new political hassle in his bid for President Obamas former Senate seat after a major contributor was arrested Thursday on charges of defrauding banks by writing bad checks.
Boston Blackie’s owner hit with bank fraud chargesChicago Sun-Times, Rummana Hussain, Abdon M. Pallasch, and Frank Main, March 11, 2010
On the same day Senate hopeful Alexi Giannoulias tried to shift the spotlight off his familys struggling bank and onto his opponents bank ties, police arrested a major Giannoulias contributor and customer of the family bank as he tried to flee the country ahead of check-kiting charges.
Blackie’s Fraud a Black Eye for GiannouliasNBC 5 Chicago, March 11, 2010
The father and son duo also used business accounts at Broadway Bank, the troubled financial institution owned by Giannoulias' family. Nick Giannis has been a significant donor to Democratic Senate candidate's current and former campaigns.
Restaurant owners charged in check-kiting schemeChicago Tribune, Matthew Walberg, John Chase, March 11, 2010
The allegations caused a new round of political embarrassment for Democratic U.S. Senate candidate and state Treasurer Alexi Giannoulias, whose family owns Broadway Bank and has long known the father and son.
Giannoulias backer charged with fraudPolitico, Alexander Burns, March 12, 2010
Illinois Democratic Treasurer Alexi Giannoulias's Senate campaign ended the week in much the same way it started: with uncomfortable stories about the Giannoulias family bank.
Alexi Giannoulias, kin could walk away from Broadway Bank collapse with $15 millionCrain's Chicago Business, Steve Daniels, March 5, 2010
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. In an interview this week, he took some responsibility for a disastrous expansion of real estate lending when he was senior lender at Broadway in the mid-2000s, before winning election as Illinois treasurer in 2006.
Chicago Sun Times, Editorial, March 4, 2010
But if Giannoulias' intent was to clear the air, we're still seeing smog. And to the extent that we do see things more clearly, we're not sure he's looking much better.
Valid questions remain about whether Broadway Bank, before and after Giannoulias worked there, took imprudently high risks with both deposits and loans. And a certain vagueness remains as to why the family withdrew tens of millions of dollars in dividends in 2007 and 2008...
...Either way, fairly or not, he doesn't come out of this looking good.
Giannoulias speaksChicago Tribune, Editorial, March 4, 2010
The candidate became intense when questioned about Broadway's loans to organized crime figures such as Michael "Jaws" Giorango and to convicted influence peddler Antoin "Tony" Rezko, connections he clearly regards as politically poisonous...
...When the family bank was flying high and Giannoulias had his eye on the treasurer's office, he was the senior loan officer, but when the tough decisions were made or the questionable characters came to call, it was almost always Alexi's day to empty the wastebaskets...
...The takeaway for voters, so far, is that as a qualification for elected office, Giannoulias' banking background has been grossly overrated. That experience — and the enthusiastic support of his friend, Barack Obama — got him elected treasurer. In the Senate race, he can't count on getting the same kind of mileage out of either.
Chicago Tribune, John Kass, March 4, 2010
With the Tribune's editorial board, Giannoulias was asked how his relationship with Giorango developed, and at what point did he learn that Giorango, whom he described as a "colorful character," had a criminal background.
"I learned of it primarily when I was running for the office of state treasurer (in 2006)," Giannoulias said. "I mean, I don't remember the exact date, whether it was during the primary or during the general. I think it was during the primary."
He was promptly reminded that on April 27, 2006, during his campaign for treasurer, he told Tribune reporters that he had discussed Giorango's criminal past with him. The discussion took place as Giannoulias worked on millions of dollars' worth of bank loans for Giorango. It was years before Giannoulias' entry into politics.
Giannoulias’ bank problems won’t go awayChicago Sun-Times, Mark Brown, March 4, 2010
But Giannoulias' problem is even more fundamental.
The only real qualification for state treasurer he could cite when he came out of nowhere at age 29 to run for office in 2006 was that he had been the bank's chief lending officer for a couple of years...
...It's enough to make a person sit back and ask themselves how Giannoulias got to be treasurer in the first place, let alone seek a promotion to the Senate just four years after arriving on the scene...
...I'm afraid his candidacy is dead on arrival.
Alexi Giannoulias seeks to explain family bank’s troublesChicago Tribune, John Chase, March 4, 2010
But questions remain about the extent of his role in Broadway Bank's biggest controversies — from ill-fated lending decisions that put the bank on the brink of insolvency to loans for a convicted bookmaker...
...In answering questions about Broadway's loans to convicted bookmaker Michael Giorango, Giannoulias said Giorango had a relationship at the bank before he worked there full time in 2002. Giannoulias told the editorial board he was unaware of Giorango's criminal history at the time of the loans, although he acknowledged in a 2006 Tribune story that he was aware of Giorango's problems.
A campaign spokeswoman said later Wednesday that Giannoulias wasn't aware of the full extent of Giorango's criminal problems when Broadway approved the loans.
Chicago Sun-Times, Abdon Pallasch, March 3, 2010
Giannoulias denied having any role in getting his former campaign policy director in 2006, Brent Adams, his current post as Acting Secretary of Financial and Professional Regulation for the state of Illinois, which has jurisdiction over Broadway Bank.
"I had nothing to do with him, nor do I know when he got the role he’s in. I never talked to him about Broadway Bank or anything. I’ve probably seen him in the elevator twice in the last two or three years, so there’s never been any conversations..."
...As he has before, Giannoulias said the loans he made to "a few colorful characters" — convicted bookmaker Michael Giorango, Russian mobsters Boris and Lev Stratievsky, and convicted influence peddler Tony Rezko — were not representative of his portfolio. Giannoulias denied, even though he went down to Florida to inspect the properties, that he was aware of Giorango’s mob ties.
Giannoulias defends family’s bank, but leaves unanswered questionsCrain’s Chicago Business, Greg Hinz, March 3, 2010
Mr. Giannoulias personally visited Florida to see property involved in a Giorango loan. Asked if he was aware then of Mr. Giorango's criminal past, Mr. Giannoulias replied, "I didn't know the full extent of his legal problems." Full extent?
Mr. Giannoulias declined to say more, despite several efforts to get him to elaborate on exactly what he knew and when he knew it.
Giannoulias predicts family bank will failAssociated Press, Deanna Bellandi
Democratic Senate candidate Alexi Giannoulias says things don't look good for the struggling bank his family owns.
Giannoulias told the Chicago Sun-Times editorial board Wednesday that it's likely the bank his father founded 30 years ago will fail.
