Feds put off report of Giannoulias bank failure until after election

Normally, a final report from the FDIC on the seizure of a bank comes six months after the seizure.  Broadway Bank got seized on April 23rd of this year, and six months is, well, today. The Chicago Tribune reports that the FDIC is going to wait until mid-November instead to reveal its findings on what created the collapse of the bank, which lets Alexi Giannoulias off the hook before Election Day:

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The release of the report before the election could have been another political headache for Giannoulias in the close contest with Republican Mark Kirk. Giannoulias has been on the defensive over his role in loans Broadway Bank made to convicted felons while he was a senior loan officer, as well as other troubled lending that contributed to the bank’s collapse early this year.

The inspector general of the Federal Deposit Insurance Corp. typically issues a “material loss” report, which details issues in a bank’s failure, about six months after the institution is taken over by the regulators. Broadway, which the FDIC accused of “unsafe banking practices,” was closed on April 23, at a cost to the FDIC of $394.3 million.

When it issued an interim report in August, the inspector general’s office said the final report would be issued on or before its Nov. 14 due date. On Friday, agency lawyer John Davidovich said the report is not expected within the next two weeks.

Well, an early (or actually on time) release would help Giannoulias and his family defend themselves from attacks over the collapse, wouldn’t it?  That is, if Giannoulias has told the truth about the nature of the loans Giannoulias approved and the $70 million in capital that the family pulled out of Broadway a few years ago.  After all, the failure of the bank cost taxpayers and voters almost $400 million.

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Wouldn’t it be nice for voters to have the complete record on the collapse before deciding whether to trust Alexi Giannoulias with the rest of our money?

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