Risky Loans, High Taxes, Big Dividends Combine to Shake Giannoulias Bank
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.
Many U.S. banks are struggling amid the worst financial crisis since the Depression. Almost monthly, at least one Illinois lender has collapsed, seized by the government because of poor performance, often due to real estate loans turned sour.
At once-successful Broadway, headquartered in a former car dealership in the Edgewater neighborhood of Chicago, the situation has turned awful at an inopportune time for the Illinois treasurer. Less than a week before Giannoulias’ Democratic primary election victory earlier this month, the scope of the problems at Broadway became clearer after a regulatory order was made public saying the bank has just three months to get its financial house in order.
Read more at the Chicago Tribune