D-Day for Giannoulias Bank

The firm needs $85 million by today to save itself

By Andrew Greiner
|  Friday, Apr 23, 2010  |  Updated 8:28 AM CDT
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Today is D-Day for the Giannoulias family business, Broadway Bank. Make that FDIC day.

A team of government-backed financial regulators is waiting to walk into the bank this evening after it closes, armed with computers, to shut down the failing institution's four branches unless the family miraculously comes up with $85 million to recapitalize it after losing a fortune on questionable real estate investments.

The 11th hour rescue is not likely to happen: bank spokesman Tilden Katz told the Sun-Times recently that the family was still working to raise the funds required by the FDIC in a regulatory order delivered in January.

Giannoulias himself admitted in March that the bank is likely to fail.

While today is the deadline for the FDIC to come in, take over the bank and potentially sell off its assets, the Giannoulias-owned institution could convince regulators to give it a little more time – perhaps a week – to try to make the $85 million total.

That move would just prolong the inevitable and could have consequences for Alexi Giannoulias’ already suffering political aspirations, according to Ward Room.

The Senate candidate has consistently argued that he was not involved in doling out the loans that ultimately sunk the bank, but his opponent in the race, Mark Kirk, still hammers away at the bank’s failure.

Regulators will wait until after the banks close to move in. End of business is 6 p.m.

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