Giannoulias Unaware of FDIC Plans to Auction Broadway Assets

Broadway bank could be sold piecemeal by the feds

By Mary Ann Ahern
|  Monday, Mar 15, 2010  |  Updated 6:47 PM CDT
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Alexi Giannoulias' family business, Broadway Bank, may soon be put up for bid, the Senate candidate confirmed to NBC5.

The Federal Deposit Insurance Corp. is set to auction off up to seven undercapatilized local banks and give healthy institutions a chance to grab up their assets and deposits.

That's news to Giannoulias, who said he hadn't heard about the plan.

"I haven't been there for four years," Giannoulias said.

A spokesman for the bank, Tilden Katz said the bank was looking into the report.

"We're working hard to raise capital and complete a transaction, and this is the first we've heard about these unconfirmed rumors," Katz told the Chicago Tribune.

Just so he knows, sources told the Tribune and Crain's Chicago Business FDIC officials are seeking bidders for seven suffering banks.

Only one of the seven has been confirmed. Bids for Amcore Bank, a Rockford-based institution, are due by April 15. The bank can save itself if it comes up with funds by the end of the month, but that's not likely.

The other six banks weren't named but Broadway fits the bill. The FDIC ordered it to raise more than $85 million in capital or else face siezure.

Giannoulias said earlier this month he didn't think Broadway would survive until the November general election.

Speaking of the general election, Giannoulias, fresh from a trip to the White House, was back in Illinois campaigning against Congressman Mark Kirk.

Giannoulias, who was talking about job creation, railed against his opponent for supporting Wall Street bailouts.

"Not surprsing Kirk voted to bail out Wall Street," said Giannoulias. "He listens to Wall Street cronies who give him $2 million in campaign contributions."

The senate candidate said he takes that personally, perhaps because of Broadway's problems.

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