"A wise and frugal government which shall restrain men
from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government."
(Thomas Jefferson)

Sunday, March 7, 2010

Will Obama Throw Illinois Senate Candidate, Alexi Giannoulias, Under his Bus?

We started out today looking at the hypocrisy of Obama during the Scott Brown/Martha Coakly race versus his support of Illinois Senate candidate/Banker Alexi Giannoulias when he ran for State Treasurer in 2006. What we ended up with was a series of articles that bring into question the ethics on the part of Alexi Giannoulias, Illinois Democrat Senate candate for a seat once held by Obama. We are not sure if some of the activities of Alexi rise to the level of illegal but activities of Alexi as Vice President of Broadway bank and as Illinois Treasurer are questionable. Alexi Giannoulias is not someone we would want in the United States Senate.

When Obama was campaigning for Coakley, he said, "Bankers don't need another vote in the Senate" which left us scratching our heads until we found this video of an interview with Scott Brown:

In his own words, Scott Brown talked about banks having to pay a fee (tax) when paying back the money the Government loaned them and how it would be passed on to consumers.

Obama answers Scott Brown's Common Sense Comments with discussing "bankers don't need another vote in the Senate":

The hypocrisy of Obama knows no bounds. Does he even know what he is saying sometimes when speaking. Bottom line is that Obama criticized Brown as being a vote for bankers when he supported Alexi Giannoulias, a Chicago banker, in his run for Treasurer and had Alexi raise money for his (Obama's) Presidential campaign.

We definitely found the hypocrisy but in the process found so much more which led us to ask two questions:

1. Will Obama Throw Illinois Senate Candidate, Alexi Giannoulias, Under his Bus?

2. Will Rahm Emanual Replace Alexi Giannoulias for the Democrat nominee for Illinois Senate?
Those are questions you are hearing more and more as the facts surface on Alexi Giannoulias and his family's banking scandal. Alexi is running for the United Staes Senate while currently the Illinois Treasurer which brings into question how he became Treasurer when you look at his political and financial backgrounds. We are guessing the Treasurer's position was payback from the Obama camp for Alexi's support for Obama in 2004 in the Senate race. Giannoulias was endorsed by Obama and became the youngest treasurer at 30 to serve in 2006.

After the current banking scandal with Broadway Bank, we have to question Alexi's choice to run for Treasurer but according to Alexi when he ran in 2006 everything was rosy for Broadway Bank. Today that rosy picture has turned into a nightmare as the Broadway Bank in Chicago, owened by the Giannoulias Family is on the verge of collapse. Was the rosy picture painted below fact or fiction at the time?

From an interview during the campaign on 2006:

Alexi Giannoulias: New Kid on the Block
by Andrew Davis


WCT: What's your biggest advantage?

AG: That's easy. My biggest advantage is that this is a fiscal office and I'm a banker and a financial manager. The state treasurer is responsible for investing $12 billion—and you want someone who's [ invested ] before. My opponent may be a nice guy, but he's more qualified to be an attorney general.

My parents founded Broadway Bank; over the past four years, we've more than doubled in asset size. I'm senior loan officer and vice president, so I oversee a $600 million loan department. I'm also chief investment officer and invest about $150 million.
We also found this political background on Giannoulias very interesting. Alexi gave the National Republican Congressional Committee $17,000 in 2004 while also contributing $7,000 to the Obama Senate campaign. On the surface that is very strange. Then Alexi began raising money for Obama's Presidential campaign in 2007 after becoming IL Treasurer. Giannoulias went from being a Pioneer for Bush (big money fundraiser) in 2004 to Obama's "protege" serving as the National Chairman of Greeks for Obama Committee raising big bucks for Obama's Presidential campaign. That doesn't pass the smell test.

With this bank scandal looming for the current Democrat candidate for the Illinoise Senate we decided to take a harder look at Giannoulias and the background on the Broadway bank. What we have found brings into question why is he is running for Senate.

Giannoulias family bank, The Broadway Bank, in Chicago is on the verge of failing and will be bailed out by the Feds to the tune of $10 - $15M according to Crain's Chicago Business.

It gets even more disgusting when you read Crain's article:

A $75-million loss at the struggling lender last year generated tax benefits potentially worth between $12 million and $15 million to Mr. Giannoulias, his two brothers and his mother. As the sole owners of a subchapter S corporation that controls $1.2-billion-asset Broadway, they pay the taxes on the bank’s income and reap tax deductions on its losses.

The possibility of family members pocketing millions in tax refunds as Broadway slides toward insolvency and federal receivership is likely to fuel more controversy for Mr. Giannoulias, who is already under fire for his role in the bank’s downfall. In an interview this week, he took some responsibility for a disastrous expansion of real estate lending when he was senior lender at Broadway in the mid-2000s, before winning election as Illinois treasurer in 2006.

In an e-mailed statement, CEO Demetris Giannoulias, the Senate candidate’s older brother, said, “If the amount of capital at our disposal were enough to meet the full amount outlined by the (Federal Deposit Insurance Corp.), we would gladly supply it because we believe in the assets and long-term prospects of the bank. Importantly, we have told all potential investors that we are willing to contribute funds alongside their investment.”

Excerpt: Read more at Crain's
Since the tax refunds will not total near enough to make Broadway Bank solvent, the Giannoulias family could potentially walk away with millions in tax refunds while the FDIC is going to absorb hundreds of millions in losses from Broadway Bank going under. The family is expected to split the millions (estimated to be between $10M to $15M) four ways between Alexi, his two brothers, and his Mom. Just the type of person we do not want to see in the Senate, but someone who could potentially self-finance his own campaign.

After the article from Crain's, we decided to take a closer look at this man who wants to be the next US Senator from Illinois and some reasons for failure of The Broadway bank which are over and above the economy. Imagine our shock when this came out in the search:


Alexi Giannoulias’ Bank Made Loans To Mobster Michael “Jaws” Giorango, Who Was Convicted In 2004 For Running Prostitution Rings, And In 1988 On Illegal Gambling Charges. (Greg Hinz, “Alexi’s Business,” Crain’s Chicago Business, 3/13/06)

At First, Giannoulias Said He Met “Jaws” A Few Times And Questioned Those Who Thought He Was A Criminal, Describing Him As “A Very Nice Person.” “But Giannoulias said that since he became a full-time senior loan officer, he has met Giorango at the bank ‘a few’ times. He described Giorango as ‘a very nice person’ and questioned whether Giorango actually was a criminal. ‘Is he a crime figure?’ Giannoulias asked. ‘I don’t know what the charges are that makes him this huge crime figure.’” (Courtney Flynn and David Jackson, “Loans To Crime Figure Haunt State Treasurer Hopeful,” Chicago Tribune, 3/15/06)

· When Asked If It Was Acceptable For The State Treasurer To Make Loans To Crime Figures, Giannoulias Said It Is His Job To Get “The Best Rate Of Return For Taxpayers To Create Jobs.” (David Jackson, “Loans Cast Pall Over Candidate,” Chicago Tribune, 4/9/06)

After Weeks Of Criticism And Story Changes, Giannoulias Finally Apologized For The Loans And Took Responsibility. (Deanna Bellandi, “Treasurer Candidate Talks About Family’s Bank Loans To Criminal,” The Associated Press, 4/26/06)

Source: The Real Barack Obama
More information on Giannoulias loans surfaced from Commentary Magainze quoting both Chicago papers:

As the Chicago Tribune explained, state treasurer Alexi Giannoulias beat back a feisty challenger who made hay out of Giannoulias’s “handling of the state’s college loan program, which lost $150 million; and of loans Giannoulias gave to controversial recipients while working as vice-president of his family’s now-struggling Broadway Bank.” Those controversial recipients include Rezko and some figures of organized crime. The Chicago Sun Times explained:

Among the loans Giannoulias has gotten heat for:

* More than $10 million from 2001 to 2005 to alleged Father & Son Russian mobster team Lev and Boris Stratievsky. Father Lev has passed away. Son Boris is in jail facing money-laundering charges. Broadway funded development projects some on the South Side — that tenants and city attorneys complained were roach motels. Broadway has been unable to collect on the loans.

* About $12.9 million to convicted bookmaker Michael Giorango for a Miami Beach hotel and a Hollywood, Fla., restaurant, among other ventures, according to Crain’s Chicago Business. Broadway has sued Giorango and his partner, Demitri Stavropoulos, convicted of running a betting operation in Chicago, seeking to get the money back. Giannoulias initially downplayed his relationship with Giorango, noting the loans to him started before he joined the bank. Later he said he went to Miami to meet Giorango and inspect the property, and that another $3 million loan to Giorango was for a South Carolina casino

Source: Commentary Magazine
The American Thinker excerpt has more on the Broadway Bank's loans including Tony Rezko arranging for Obama to get a bank loan on a condo that he couldn't afford:

(4) The Giannoulias family was involved with Obama as far back as his first state senate campaign in 1996. It has been long rumored here in Chicago that Obama obtained a sweetheart deal on his first town home here in Chicago - which he could not have afforded otherwise - and guess who the financing came from for that house? We've been told it was Broadway Bank, the Giannoulias bank. Now, this sets up a scenario where the Giannoulias family helps Obama with his campaign finances and gets him deeper in their pocket with his sweetheart mortgage deal (for the first home he owned that he could not afford) - all in exchange for quid pro quo to be determined later.

(5) One favor political Chicago claims Obama did for the Giannoulias family was in 2006 when, out of the blue, 29 year old Alexi Giannoulias, with no experience, and without ever having voted before, decides to run for State Treasurer of Illinois. Also out of the blue, Barack Obama endorses Alexi Giannoulias for State Treasurer. This was a SHOCK to everyone in Chicago - and Giannoulias would have never become State Treasurer without Obama's help. In political circles here, it has always been believed that this endorsement was bought years ago with that sweetheart mortgage deal Broadway Bank arranged for Obama to buy his town house.

(6) So, the Tony Rezko sweetheart deal was not the first magic home loan Obama ever received to buy a house he could not afford.

Source: American Thinker
In a short period of time we have found questionable loans by Alexi Giannoulias at Broadway Bank including loaning Obama money for a condo he couldn't afford at the request of Tony Rezko. We know that recently impeached Illinois Governor Rod Blagojevich was an early supporter of Obama and Giannoulias. Rezko also pushed Blagojevich for the appointment of Demetris Giannoulias, Alexi's brother to the Illinois Finance Authority board. Today Blagojevich is under indictment and Tony Rezko has still not been brought to trial. How much have these two men and others told the US Attorney about not only Giannoulias but about Obama? How far reaching will the investigation go into Obama and his Chicago cronies?

Yet with all of this, Alexi Giannoulias, who is the current Treasurer of Illinois endorsed by Obama in 2006, is still going to run for the US Senate seat from Illinois? The family will split the millions (estimated to be between $10M to $15M) four ways between him, two brothers, and his his Mom. Just the type of person we do not want to see in the Senate, but someone who could help self-finance his campaign.

Rumors are flying inside the beltway that Rahm Emanel will resign from the White House to replace Giannoulias as the Illinois Senate candidate for the Democrats. That must send shudders through the Giannoulias camp as Giannoulias is thrown under the bus. We are predicting that in the next few months Alexi Giannoulias will find a reason to spend more time with his family rather run for Illinois Senate. We don't believe Obama will be able to take the heat of Giannoulias running. Time will tell but our bet is on Giannoulias 'spending more time with his family' opt out of the Senate race speech.

The Democrats do have a problem with that Senate seat once held by Obama as they have had a series of snafu's getting the seat filled by a Democrat and now the nominated Democrat candidate for the seat, Giannoulias is ethically challenged if not worse.

All the while Paul Kirk, the Republican nominee, keeps working to flip the Illinois Senate seat RED in November which is a very good possibility with the way Democrats are handling this Senate race starting with their candidate.

1 comment:

Lucky Archer - Lakis Velotris said...

Did Illinois Giannoulias, Florida's Crist, California's Angelides and New York's Gianaris apply Greek budgeting techniques like Sarbanes Oxen? Greek Ponzi fourfold Eurodefecit boasts Trojan Horse Perfidy, Klephth Brigandage. Upset that industrious Albanians invaded their lazy, gungrabbing, babykilling homeland, the soviet-churched Greeks vindictively hire, house and promote illegals. As quakes render their homes disposable, Greeks are oblivious to the very concept of maintenance. Instead of blaming environmetalists for fires and socialists for deficits, Greek dmeagogues seek scapegoats. Olympia Snowjob supports Obamacare and abortion because of her gangreen patriarch (Is Orthodox Christianity progressive? Michelle Boorstein Washington Post 11-4-09 Ecumenical Patriarch Bartholomew spoke about the spiritual imperative for nonviolence, universal health care and reducing consumption to help the environment.) Palamite Zealotes massacred Thessalonian aristocracy in preparation for Cantacuzene usurpation via hesychast hyperventilatory hallutination. This soviet socialism motivated Anatolian farmers to embrace Turks in the 1400s to avoid redistributative taxation and then for liberated mainlanders to migrate to Smyrna in the 1800s. int gonna vote for Do Kaka Zote!