Giannoulias bank gave Rezko $22.75 million loan in 2006
posted at 12:55 pm on August 2, 2010 by Ed Morrissey
As if Alexi Giannoulias doesn’t have enough trouble with his family bank’s collapse and federal seizure. Broadway Bank’s loans to mobsters during Giannoulias’ tenure with the bank has already been well known, but court records show yet another felon benefited from Broadway’s largesse – Tony Rezko. In 2006, while Giannoulias ran for state treasurer, his family bank gave the convicted insider almost $23 million in loans for a construction project while keeping his name off the records:
This was the Tony Rezko who, looking for millions of dollars for a massive South Loop development, turned to Broadway Bank, owned by the family of Alexi Giannoulias. Giannoulias, the Democrat now running for U.S. Senate, had left his post as a senior loan officer at the Chicago bank in late 2005 to mount a successful campaign for Illinois state treasurer, though he still held an ownership stake in the bank.
Rezko’s company asked. And Broadway Bank came through.
On Feb. 14, 2006, newly obtained records show, the bank made a $22.75 million loan to a company called Riverside District Development LLC, whose owners, it turns out, included Rezko.
You won’t find Rezko’s name on any documents filed in the public record in connection with the loan.
But Rezko acknowledged his ownership stake in Riverside District Development to a federal judge about a year after the loan was made, according to a transcript of the court hearing.
The Hill says this will complicate Giannoulias’ Senate campaign a bit, mainly from Democrats who may not want to tie themselves too closely to Giannoulias:
Giannoulias previously has been on the receiving end of fundraising help from Vice President Joe Biden and other top administration officials. Raising money has been a problem for the Democrat since Broadway Bank’s collapse in April, his most recent Federal Election Commission filings show.
What a shock! The bank collapses, and suddenly the political money dries up. At least the Giannoulias family managed to get their $70 million out of the bank just before it collapsed and the feds seized it — and they’ll get another $10 million or so out of the seizure, too. That could pay for a lot of ads to talk about the fine points of Mark Kirk’s military service, after all.
Not everyone seems reluctant to come to Alexi’s aid. President Obama will arrive on Thursday to headline a fundraiser for Giannoulias, just in time to answer even more questions about his ties to Rezko, and both of their ties to Broadway Bank. How much do you want to bet Alexi gets the Indonesia treatment?