Ill. GOP press release: Day 15, Alexi, we’re still waiting…

Yes, Alexi...we are waiting...waiting...waiting.

From an Illinois Republican Party press release:

"We'll have plenty of time to get into that," Giannoulias said at a hastily called news conference. – Chicago Tribune, John Chase, January 28, 2010.

Senate candidate Alexi Giannoulias wants to wait until after Tuesday's primary election to answer questions about whether decisions he made led to his family bank's current fiscal problems. – NBC 5 Chicago, Andrew Greiner, January 28, 2010.

"If I'm fortunate enough to make it out of the primary, we can have that conversation," the Chicago Democrat told reporters. – Associated Press, Christopher Wills, January 28, 2010.

At Thursday's press "availability," Giannoulias -a basketball player in college- sidestepped, weaved and boxed-out when it came to answering specific questions about what role- if any- he may have had in the financial troubles of Broadway. – Fox Chicago News, Jeff Goldblatt, January 29, 2010.

"There are some things we do know and should acknowledge…I've encouraged him to answer all the questions." – Senator Dick Durbin, Fox Chicago News, February 8, 2010.

As we enter day 15 of Alexi Giannoulias’ silence regarding his involvement in "hot money" investments that may have led to the near collapse of Broadway Bank, we wanted to highlight an excellent blog posting by Jeff Goldblatt of Fox Chicago News. The following was written just before the Feb. 2nd primary election – the last time we would hear from Alexi Giannoulias on this issue. In it, Alexi himself says it isn't "an unfair conversation to take place." Voters deserve answers; it's time to have the conversation.

The "Availability" of Alexi Giannoulias
Friday, January 29, 2010, 09:21 AM CST

"We just wanted to come down, to just make sure we're available."

That is how it all started: a seven minute press conference held by Senate candidate Alexi Giannoulias, his first since his family bank signed a consent order with banking regulators on Monday a move signaling serious fiscal challenges. But I soon found out that "availability" doesn't necessarily translate into accountability- at least not today. Either that, or my definition of "availability" means something different than the interpretation currently held by Giannoulias, now the state's sitting Treasurer. He was elected to that post after working from 2002-2006 as a senior loan officer and vice president at Chicago-based Broadway Bank, which was founded by his father Alexis. Although Giannoulias has left the bank, his older brother, Demetris, is the bank's CEO.

At Thursday's press "availability," Giannoulias -a basketball player in college- sidestepped, weaved and boxed-out when it came to answering specific questions about what role- if any- he may have had in the financial troubles of Broadway. Giannoulias pinned the banks' struggles on the recession and said many of the troubled loans were made *after* he left Broadway. But what about loans *he* brokered or oversaw while *he* was there?

Indulge me now if you would and follow this Q & A verbatim from today's brief, press "availability":

Goldblatt:

"The recession, as well noted, took a lot of community banks. So, if we take that argument at its face--maybe people are looking past that though- they want to know about your judgement. So, tell me about your judgement in light of this whole controversy?"

Giannoulias:

"Sure, I don't think that's an unfair conversation to take place, ya know over the last, I think in 2009, there were over 700 financial institutions working on similar agreements with the FDIC. As is evident, community banks are more likely to give loans for real estate purposes. When the real estate market drops by thirty to forty percent in certain markets, it's obviously going to have an enormous impact. We've seen that everywhere, especially here in Illlinois. Now, I haven't been there for 4 years. I'm not involved in the management or operation of the bank, but when I left there we had capital above our peer group. Uh, it was a highly performing financial institution. But again, it's easy for me to look back 4 or 5 years ago and say I was there during the better days."

Goldblatt follow-up:

"But these were your real estate and investment decisions, were they not?"

Giannoulias:

"No, and again, we have plenty of time to get into that."

Goldblatt 2nd Follow-up:

"But broadly speaking you were the chief lender, you were one of the Vice Presidents. Weren't you there at the board table making a lot of these decisions?"

Giannoulias:

"Well again, over the last 4 years, as we've seen, some of the real estate market has just had some enormous challenges, while I haven't been there for 4 years, it's a family institution. I hope they can fight through and make it through."

There were two consistent themes to the press "availability" and my stream of give-and-take with Giannoulias (which was civil):

1) A failure to specifically answer specific questions, not just mine.

2) A reliance on a fall-back position: "I haven't been at the bank in four years." By my count, that was Giannoulias' go-to line of logic EIGHT times over a seven minute press conference.

My line-counting, however, is not done. Three times he remarked or intimated there's plenty of time for conversation down the road about the role he may have played in the bank's troubled loans.

Time now for another press question and another side-step:

Another Reporter: "Isn't there some lag time between some of the decisions made 4 years ago, which are coming home to roost now?"

Giannoulias: "We'll have plenty of time to get into that."

We do? The primary election is four days away.

Maybe Giannoulias views this election, in which he's considerably ahead in the polls, as a lay-up? Perhaps he is already counting down to the next match-up: the general election? If so, and he wins the February 2nd primary, Republicans are bound to come at him with sharp elbows on this issue in the months ahead, by making Broadway Bank a centerpiece of the Senate debate.

As part of the consent order signed by Broadway, the bank was not required to accept responsibility for charges levelled against it of "unsafe or unsound banking practices and violations of law, rule, or regulation alleged to have been committed in relation to weakness in capital, asset quality and liquidity." And yet there are consequences to pay. Broadway has been ordered to raise millions in capital, stop dividend payments, and agree to independent oversight.

It remains to be seen whether there will be consequences for Giannoulias himself. But there needs to be more honesty and accountability here, especially considering the gravity of the job he wants.

It's o-k to make mistakes. We all make them. But evasiveness in politics- although customary- is especially insulting days before an election. As they say out on the hardwood: "MAN UP!"

Related posts:

Ill. GOP press release: Day 13, why is Alexi hiding?

Ill. GOP press release: Giannoulias under fire - When will Alexi come clean?

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