This Week's Busted Banks

Seven more banks went under today in the Chicago area, including one that's tied in with current Senate Democratic candidate Alexi Giannoulias.

Broadway Bank, the family-run lender that helped launch U.S. Senate candidate Alexi Giannoulias' political career, was one of seven Chicago-area institutions seized by the U.S. government Friday and sold to healthier companies.

The failure of Broadway, which was unable to raise the $85 million it needed to remain independent, will cost the Federal Deposit Insurance Corp. $394.3 million.

Giannoulias worked for his father at Chicago-based Broadway before entering politics, and the bank's struggles in recent years with real estate loans gone bad have weighed on Giannoulias' Democratic bid for Barack Obama's old Senate seat.

During Giannoulias' 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.

"This is a difficult day for bank employees, for my family, for this community and for all those who built businesses and protected their savings with the help of this bank," Chief Executive Demetris Giannoulias said in a statement. "We fought to carry out the vision my father had when he founded Broadway Bank 30 years ago, but our bank -- like many businesses -- has struggled during these challenging times."

That brings 2010's total to 57 banks in 4 months.  There will be a lot more in the coming months and probably years.  Meanwhile, this is not really good for the Dems in Illinois.  Republican Mark Kirk will have a field day with this, and he deserves to.


Hell I'm not sure I would vote for a Democrat from a busted bank like that, not when I know how banks get busted.