Giannoulias, Family May Get Millions from Bank Tax Refunds

Money would be to be used to save bank

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    NEWSLETTERS

    TK

    Alexi Giannoulias and his family could see a more than $10 million windfall whether or not Broadway Bank fails. 

    Th U.S. Senate candidate, his mother and two brothers are eligible to receive between $12 million and $15 million in tax deductions on last year's $75-million losses, according to Crains.

    A bank representative and campaign officials were quick to point out the money in question is a refund of taxes Broadway Bank paid to the government and would be reinvested in its future.

    "We are doing everything we can to save the bank, " Demetris Giannoulias said."We would gladly contribute the tax refund and more if would protect the banks future." 

    For the democratic nominee who broke down this week in an interview about the likely failure of the family business, it raises a new set of questions about his part in the demise of the bank. 

    Giannoulias, who was senior lender at the bank until he became treasurer of Illinois in 2006, tried to distance himself from any decision about using the federal refund money to keep Broadway bank open.

    "You'll have to ask management of the bank what the best course of action is," Giannoulias told Crains. "“We’ll do everything we can to keep the bank going."

    But the money would only cover a small portion of the $85 million needed to keep Broadway Bank open, according to CEO and brother Demetris Giannoulias. He told Crains the family can add another 10-20 percent in cash. Outside investors would need to would need to cover at least another $50 million.

    Broadway Bank has become the centerpiece of the campaign for President Barack Obama's former senate seat. This week, Giannoulias and  his Republican opponent, Mark Kirk, launched dueling web sites on the matter. TruthAboutAlexi.com and RealTruthAboutAlexi.com may sound similar but the intent is to try spin the truth to each candidate's advantage.