When Illinois Democrats nominated Tony Rezko’s banker, Alexi Giannoulias, for the senate seat once held by Barack Obama, some thought they might have made a mistake. It seems to have, at the very least, complicated the Democrats’ efforts to hold what in normal years would be a safe Blue seat. The Chicago Tribune reports:
The clock is ticking, and the real estate deals gone south are piling up, at Broadway Bank, the lending institution owned by the family of U.S. Senate candidate Alexi Giannoulias. . . . Broadway’s struggles have put Giannoulias on the defensive as Republicans eyeing Barack Obama’s old Senate seat question what role he played in the bank’s problems. Giannoulias, a friend of Obama’s who is facing U.S. Rep. Mark Kirk, the GOP nominee, in the November race, has repeatedly said he hasn’t worked at the bank in four years.
Still, the situation could become more politically harmful and provide more ammunition for the GOP if the family-owned bank is taken over by the federal government before Election Day.
Broadway’s chief executive, Demetris Giannoulias, Alexi Giannoulias’ older brother, told the Tribune the family must raise at least $85 million by the end of April to stave off government seizure.
Since 2007, Broadway Bank has filed dozens of foreclosures on various properties, including several to Michael Giorango, a convicted bookmaker and prostitution ring promoter who has become a political albatross in Alexi Giannoulias’ campaigns.During Alexi Giannoulias’ tenure at Broadway, the bank approved loans to Giorango for various real estate deals. Alexi Giannoulias has acknowledged he serviced some Giorango loans and went to Miami to inspect Giorango property the bank financed.
If the themes for many Republicans are going to be “the culture of corruption” and the Democrats’ fiscal mismanagement, they must be licking their chops over this race. At the very least, Democrats will have to spend considerable time and money defending the seat, in a year in which they’d probably not have Giannoulias as one of the poster boys for what’s wrong with the Democratic machine-style politics.