Nov. 16, 2010 at 5:20 p.m.
Filed under:
Bank failures,
Banking,
Politics,
Real estate
By Becky Yerak
Signage gets changed in the window at Broadway Bank at 5960 N. Broadway. The bank was seized by the FDIC on Friday, Apr. 21, 2010. (Phil Velasquez/Chicago Tribune)
A regulatory autopsy into the April failure of Chicago’s Broadway Bank, which was owned by the family of failed U.S. Senate candidate Alexi Giannoulias, faulted management for pursuing an aggressive growth strategy in commercial real estate.
A heavy emphasis on such lending was “exacerbated by the bank’s significant emphasis on out-of-territory lending and large borrower relationships,” according to a report released Tuesday by the Federal Deposit Insurance Corp.’s Office of Inspector General.
Although not a primary reason for its failure, the FDIC also cited Broadway’s investments in higher-risk collateralized debt obligations. Get the full story »
Nov. 4, 2010 at 12:33 p.m.
Filed under:
Bank failures,
Banking,
Government
By Becky Yerak
Broadway Bank, the lender once owned by the family of losing U.S. Senate candidate Alexi Giannoulias, attracted only one bidder when it failed in April, newly released records from the Federal Deposit Insurance Corp. show. Get the full story »
By Reuters
There is no evidence that politics played a role in the government seizure of a Chicago bank owned by the family of the Democratic nominee running for the U.S. Senate seat once held by President Barack Obama, a government watchdog said this week.
On April 23, bank regulators seized Broadway Bank, a community bank with $1.2 billion in assets, and the Federal Deposit Insurance Corp arranged for MB Financial Inc. to assume its deposits.
The move then became embroiled in this year’s campaign season because the bank was owned by the family of Alexi Giannoulias, the first-term Illinois state treasurer and the Democratic nominee in this year’s U.S. Senate race. Get the full story »
