FDIC: Broadway Bank failure tied to too many bad loans outside Chicago

Earlier today the Federal Deposit Insurance Corporation released its final report on the failure of Broadway Bank, the financial institution owned by the family of defeated Democratic US Senate candidate Alexi Giannoulias. Surprisingly, there are no bombshells, but the report shoots a hole in Giannoulias' claim that Broadway was a modest community bank serving the needs of North Side Chicagoans--and that it was just an innocent bystander when the recession hit a couple of years ago.

Simply put--too much money was loaned too far from home on bad deals. One of those non-performing loans went to convicted mob pimp Michael "Jaws" Giorango--for a Florida property purchase.

Not addressed in the report is the $30 million in net dividends the Giannoulias' took from the bank late in the last decade--shortly before the started dimming on Broadway.

Typically, FDIC post-mortems are released six months after a bank failure. If that was the case with Broadway Bank, its report would have come out shortly before Election Day.

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