CHICAGO

Giannoulias' Broadway Bank Problem: Regulators Step In

03/29/2010 05:12 am ET | Updated May 25, 2011

Broadway Bank, the troubled Chicago lender owned by the family of Illinois Treasurer and U.S. Senate candidate Alexi Giannoulias, has entered into a consent order with banking regulators requiring it to raise tens of millions in capital, stop paying dividends to the family without regulatory approval, and hire an outside party to evaluate the bank's senior management.

The Jan. 26 consent order with the Federal Deposit Insurance Corp. and the Illinois Division of Banking comes less than a week before Mr. Giannoulias -- Broadway's chief lender and then vice-president from 2002 to 2006 -- must face voters in the Democratic primary for the Senate seat previously held by President Barack Obama.

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