Gian­nou­lias bank un­der fed­eral scru­tiny

Chicago Sun-Times - - News - BY ABDON M. PALLASCH AND DAVID ROEDER

State Trea­surer Alexi Gian­nou­lias’ fam­ily-owned Broad­way Bank has en­tered into a con­sent de­cree with fed­eral and state reg­u­la­tors to keep the bank run­ning.

In­de­pen­dent rat­ing agen­cies have listed the bank as among the most trou­bled of its size in Illi­nois.

Gian­nou­lias and bank of­fi­cials have de­nied al­le­ga­tions from David Hoff­man, a ri­val in the Demo­cratic U.S. Sen- ate pri­mary race, that Broad­way is more lever­aged with risky loans than most com­mu­nity banks.

The con­sent de­cree en­tered into Tues­day re­quires Broad­way to raise about $50 mil­lion in new cap­i­tal and add at least $19 mil­lion to its re­serves for loan losses within 10 days.

It also must sell off prob­lem as­sets and im­prove op­er­a­tions and man­age­ment sys­tems un­der the re­view of the Fed­eral De­posit In­sur­ance Corp. The FDIC still guar­an­tees ac­counts but now must ap­prove all sig­nif­i­cant de­ci­sions. The bank also must hire an out­side party to eval­u­ate se­nior man­age­ment.

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