Giannoulias predicts family bank will fail

[The Northerner]

Democratic Senate candidate Alexi Giannoulias says things don't look good for the struggling bank his family owns.

Giannoulias told the Chicago Sun-Times editorial board on Wednesday that it's likely the bank his father founded 30 years ago will fail.

Broadway Bank entered into a consent decree with regulators in January and has 90 days to raise about $85 million in new capital. The bank also has to deal with bad assets and improve its management.

The bank's financial struggles have become a key issue in Giannoulias' bid for President Barack Obama's old Senate seat against Republican Mark Kirk.

Kirk is a five-term congressman who's sought to portray Giannoulias as a failed businessman. Giannoulias touted his banking experience when he was elected Illinois state treasurer in 2006.

http://www.dailyherald.com/story/?id=363343&src=329

[Mike 03]

1. Maybe he is undercapitalized and perhaps his CRE portfolio might not be too

good.

[applegrove]

2. There was a US banking expert on a canadian show called the Lang & Oleary Exchange.

He said he expected 500 US banks to fail.