Broadway Bank, the family-owned lender that helped launch U.S. Senate candidate Alexi Giannoulias' political career, was seized by government regulators Friday night, one of seven Illinois
institutions taken over and sold to healthier companies...The failure of Chicago-based Broadway, which was unable to raise the $85 million it needed to remain independent, was anticipated, and its worsening health has weighed on Giannoulias' Democratic bid for President Barack Obama's old Senate seat. The bank had been struggling in recent years with real estate loans gone bad, losing $75 million last year..Giannoulias worked for his father at Broadway before entering politics, and during his successful run for state treasurer in 2006 he used his banking experience as one of his chief qualifications. But in the Senate race, he has tried to distance himself from the bank's troubles..The Tribune reported this month that the $1.15 billion-asset bank, founded in 1979, lent a pair of Chicago crime figures about $20 million during a 14-month period when Giannoulias was a senior
loan officer. .....even fellow Democrats have taken shots at Giannoulias and Broadway. Asked recently whether the bank's problems would affect Giannoulias' Senate bid, Democratic House Speaker Michael
Madigan joked, "I'm glad I don't have any deposits there."
"It is an incredibly sad and heartbreaking day for me and my family," Giannoulias said. "My father and my brothers have changed the lives of so many families and entrepreneurs, both in the Edgewater community and throughout the country...While today was a devastating day for me and my family, what happened today makes me want to fight even harder for Illinois families that have lost their jobs, their homes and their own businesses."