Following the announcement that federal regulators have stepped in to monitor executives at Alexi Giannoulias' family bank, fellow Senate candidate and Chicago Urban League President Cheryle Jackson called on Giannoulias to withdraw from the race "for the sake of Illinois families."
Crain's Chicago Business reported Wednesday that Broadway Bank entered into a consent order with bank regulators that will require 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."
Though the new rules will not affect Giannoulias directly--he is no longer a senior member of management at the bank--Jackson accused her opponent of raking in money "off of the backs of working families," Chicago Current reports:
"For the sake of Illinois families and for the good of the Democratic Party, I am calling on the treasurer to do the honorable thing and withdraw from this race today," Jackson said.
Inspector General David Hoffman did not ask Giannoulias to withdraw, but reiterated what he has been saying in campaign ads:
"Even before today, his limited experience and his refusal to take responsibility for his failures -- both as a banker and as manager of the Bright Start program -- were clear," Hoffman Campaign Manager Michael Powell said in a statement to Chicago Current. "Now we learn that his risky loans at the bank, and his family's decision to take $86 million in dividends for themselves, has caused the bank's collapse, and a likely bailout and takeover by the FDIC."
Though the bank has not been taken over by the FDIC, and the regulation aims to get the bank back on its feet, it is yet to be seen whether the news will benefit Hoffman or Jackson's campaign.
A Giannoulias spokeswoman made sure to point out Jackson's own connections to corruption following her plea for Alexi to drop out:
"Ms. Jackson, Blagojevich's former spokesperson, has launched a very Blago-like attack. This is a desperate and ridiculous attempt from a candidate behind in the polls to give her campaign a boost by exploiting the economic challenges facing millions of businesses, including this one."
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