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David Sirota

David Sirota

Posted: January 28, 2010 01:07 PM

If This Becomes the Face of the Democratic Party, Say Goodbye to the Democratic Party

What's Your Reaction:

Illinois' U.S. Senate Democratic primary is coming up in less than a week, and it poses a potentially enormous problem for the Democratic Party, in Illinois and therefore nationally. That "therefore" is important: Because President Obama is from Illinois, and because Republicans have invested so much time and resources trying to nationalize the concept of the corrupt "Chicago politician," whoever ends up the Democratic nominee for Obama's old seat will likely be made by the GOP into a face of the Democratic Party as a whole.

That's why the candidacy of Illinois Treasurer Alexi Giannoulias is so problematic. Holding a slight lead in the polls against other Democratic challengers, he has become a poster child for everything that is wrong with the American economy -- everything that the Republican Party's right-wing populism desperately needs to find traction. Here's what I mean:

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.

He's faced criticism, principally from former city Inspector General David Hoffman, who's running against him, for his past role at the bank and the $70 million in dividends the family took out of the bank in 2007 and 2008 as the real estate crisis was becoming apparent.

Bloomberg News shows just how mortally dangerous to the Democratic Party Giannoulias would be if he wins the nomination:

Banking Past Haunts Obama Friend Who Wants His Old Senate Seat


"Bankers don't need another vote in the United States Senate -- they've got plenty," Obama said Jan. 17 in Boston, signaling a broader strategy to tie Republicans to Wall Street greed.

In the (Illinois) race to fill Obama's old Senate seat, the banker in question is a Democrat, Alexi Giannoulias, a presidential friend whose family's bank once held deposits for an Obama campaign committee...

Giannoulias, 33, a former senior loan officer and bank vice president, now serves as treasurer of Illinois...Giannoulias said he now owns 3.6 percent of the bank...

The $1.2 billion community bank, founded in 1979, has been part of Giannoulias's public profile since he won election in 2006 because it made loans to a bookmaker as well as convicted Illinois influence peddler Antoin "Tony" Rezko.

According to the latest poll by Public Policy Polling, 32 percent of likely Democratic primary voters say they will support Giannoulias as compared with 20 percent who say they plan to support former Chicago Inspector General David Hoffman and 18 percent who say they plan to support former Chicago Urban League president Cheryle Jackson. So it's still a very close and fluid race, with many undecideds.

As these stories make clear, if Giannoulias is the winner, we can expect to hear for the next year about how the Democratic Party is so corrupt it is now promoting a scandal-plagued banker to fill Obama's old Senate seat. While Giannoulias leads likely Republican nominee Mark Kirk in one early poll, you better believe those polls will change in a general-election battle that focuses in on this banking theme.

Thus, if Giannoulias, it would be a clear disaster. He is literally the walking personification of all that the public clearly despises right now -- an Establishment politician closely connected to the industry that has destroyed the economy.

With him as the nominee, Democrats could lose yet another senate seat, and more broadly, they could lose any national high ground they need to reclaim. At a time when the Democratic Party desperately needs to reclaim the populist economic mantle and prevent Republicans from being able to mount their own right-wing populist campaign, Giannoulias would become the face of a Democratic Party that has already become increasingly synonymous in voters minds with the most hated aspects of the financial industry.

I'm not endorsing any of the other candidates, and I have absolutely no personal stake in the outcome of this primary election, other than hoping it doesn't destroy the Democratic Party I've worked with and for over the last decade. Maybe that party I once worked with and for is already totally destroyed -- I have a sneaking suspicion that it is. But maybe not. That's precisely why I write this: To point out that if this particular candidate becomes the new face of the Democratic Party, the "maybe not part" could easily disappear.

 
 
 

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11:09 AM on 02/04/2010
You can blame all the people that don't vote in primaries for this mess. I tried to convince a lot of people that I know to vote for Huffman, and their answer to me was they never vote in the primaries. How stupid is that!!!! I will still vote for a Democrat, but with a heavy heart. We need to keep as many Democrats in the Senate for the sake of Obama.
10:43 AM on 02/03/2010
I voted Hoffman yesterday and now I dont know what I am going to do next fall. shit man whats wrong with Illinois.
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HUFFPOST SUPER USER
donna16
08:24 PM on 02/04/2010
I voted for Hoffman Too, and Kirk is my Rep now. This sucks!
04:56 PM on 02/02/2010
If he wins I will vote Republican for the first time in my life.
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HUFFPOST COMMUNITY MODERATOR
godlessliberal
09:56 PM on 02/02/2010
That's the spirit! Vote for Mark Kirk because he will certainly vote in favor of health care, cap and trade, immigration reform, etc.
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HUFFPOST SUPER USER
LeaderofMen
Bilingual former US Marine.
11:37 AM on 02/02/2010
That's why I voted for Kelly this AM.
02:33 PM on 02/01/2010
I couldn't agree more. one way to address the Giannoulias problem, too, is to ensure his chief of staff doesn't take the reins of the Treasurer's office. it's a race under-the-radar, but hugely important for the future of the dems in illinois, especially if alexi wins. personally, i'm voting for Justin Oberman for State Treasurer - both to change the guard in that office but also to bring in new blood to illinois state politics. he has awesome federal govt experience (one of the guys tapped to launch homeland security while he was working for mineta), has real private sector financial experience, and can actually fix a lot of the fiscal problems Alexi created and will leave behind. i don't normally even get interested in candidates b/c most are phony, but this guy is for real. check him out: obermanforillinois.com . and let's end the Alexi legacy!
12:46 AM on 01/30/2010
Dems want to replace on scandal ridden Senator with another.
That makes sense........................................ In Illinois Democratic circles.
11:16 PM on 01/29/2010
David...

I am a huge fan of yours, but in this case you have only done half of your job.

Yes, Alexi Gianoullias is a fatally flawed candidate. But of the other four candidates, there is one truly outstanding candidate that is the answer to all the questions you raise.

That candidate is David Hoffman. A squeaky-clean Illinois Democratic, which we desperately need in 2010, plus a rock-solid progressive populist who will go to Washington and fight for us.

Heck...just look at the comments to your post.

Please...do some more fact-finding and give us your thoughts on who Illinois Democrats should vote for, not just who we should vote against!
HUFFPOST SUPER USER
Mock38
02:46 PM on 01/31/2010
Vote FOR David Hoffman.

The Washington Post said today donations to his campagin have soared in the past week.

If he gets the nomination Tuesday, then the Dems will retain the Obama seat.
If he does not...hello Mark Kirk!
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VOTER
Freedom from fear - the philosophy of human rights
12:22 PM on 02/02/2010
I voted early and voted for Hoffman.

However, I will vote for the Demoract Senate Nominee in November even
if my personal favorite isn't on the ballot.

Why?
I will vote for an Obama Supporter.

I will NEVER vote for a Bush Loyalist AND Mark Kirk is one.
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amt77
05:00 PM on 01/29/2010
Crain's Chicago endorsed David Hoffman: http://www.chicagobusiness.com/cgi-bin/news.pl?id=36920&seenIt=1
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amt77
12:50 PM on 01/29/2010
Thanks for your article Mr. Sirota, you make some good points. I read one factor being taken into consideration in the polling against the new candidates for IL senate, is that they have never run statewide before, but I think David Hoffman has run a great campaign so far, and I am convinced he will have no problem taking it statewide. He has been skyrocketing in the polls and I think he is our best bet for keeping this Senate seat blue.

Michele Malkin already took notice of David Hoffman and what message Alexi would be sending if h is the candidate in this post: http://michellemalkin.com/2010/01/12/a-democrat-takes-on-chicagos-culture-of-corruption-really/
HUFFPOST SUPER USER
WMcP
11:40 AM on 01/29/2010
You may be quite right about all of this, but Public Policy Polling is a robopollster that doesn't have much credibility among serious pollsters. We can hope they're wrong in this instance, too.
http://blogs.abcnews.com/thenumbers/2010/01/if-you-disagree-press-2.html
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amt77
02:04 PM on 01/29/2010
You may be right about PPP - I don't really know much about them but they had the Massachusetts special election numbers right...

http://www.pollster.com/polls/ma/10-ma-gov-ge-bvco.php

but this is a primary, not a special election, albeit a very early primary, so you have to wonder how good anyone's numbers are...
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HUFFPOST SUPER USER
imfedup
Fight the lies.
09:54 AM on 02/03/2010
They had NY23 totally WRONG.
11:10 AM on 01/29/2010
You don't know the half of it, David.

It's not just the bank, but the mobster loan recipients & mob ties in general...I've coined the phrase "Don Giablagstrogurris" for the shoo-in Senate nominee. In the Treasurer race two years ago, the HEAD of the IL Dem party...and the most powerful state Dem in general....Mike Madigan...made his feelings known quite clearly:

"Democratic Speaker Michael Madigan refuses to endorse Giannoulias and won't even put his picture on the party's campaign web site. "I want some answers. The allegations are there," Madigan said earlier this week. "My history in politics, if you were alleged to be connected to the mob, you were done. But life seems to go on."

BOTH Chicago papers endorsed Hoffman over The Don...and the Trib actually reiterated it's endorsement today because The Don was using some Trib articles in his TV ads.

Hoffman has a chance against Kirk...Alexi does not. Remember, campaigning/voting for the gen. election will be happening DURING the Blago trial. The GOP will be cranking up The Taint Machine to 11, reminding us all how much the Dems shamed us in the last 2 years.
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VOTER
Freedom from fear - the philosophy of human rights
12:27 PM on 02/02/2010
While the GOP crank up their Taint Machine with Blago, we will
be sure and remind the voters of Inmate George Ryan, the former Republican Governor of IL
currently sitting in a Terra Haute, Indiana Prison.

How many times did Kirk offer support for Ryan?
How many times did the IL GOP back Ryan?

Hmmmmm
03:13 PM on 02/02/2010
BWAAAHAAHAAA

That horse is EIGHT YEARS old, and his wife is dying...you'd probby get more sympathy than anything else. Ryan is beloved on the national level for his death penalty moritorium, Blago is reviled nationally AND locally, and it's a fresh wound that is far more vile than what Ryan did.

But now I gottta go start floggin' that lowlife dem gov. Dan Walker....sigh.
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HUFFPOST SUPER USER
crookedcountyillinois
Professional Illinois Government "Watchdog" and No
10:29 AM on 01/29/2010
As a lifelong Democrat, I said goodbye when they jacked-up my property taxes 45% with HB0664. And since it didn't affect my assessment, just my exemption, I couldn't appeal it with the Assessor, Board of Review, or PTAB.

Yesterday I pulled my first of what might be a long line of Republican ballots.

Thanks Madigan!!!

WWW.WATCHDOGJENKINS.ORG
04:34 AM on 01/29/2010
add this article to the other one on the huff about a busted tea party, and the Fox coverage about how its not a Dem thing but a progressive thing, almost like 'herding the sheep' in a direction

and you see corporate propaganda trying to mold you in action
11:29 PM on 01/28/2010
Today, I have just seen a new Rasmussen Reports poll of likely Democratic Primary voters that finds David Hoffman continuing to surge. The poll shows that he is now within 8 points of Alexi Giannoulias (23% to 31%) with 24% of voters still undecided. The poll, taken right before Hoffman's major statewide TV buy, shows considerable movement for him, which is bound to improve as more people see the ad. Hoffman has picked up 14 points since December, while Mr. Giannoulias remains stuck at 31%.
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mratcheson
09:36 AM on 01/29/2010
The more people know about Hoffman, the more they like and support him. He was relatively unknown statewide before this primary season.
09:41 PM on 01/28/2010
What you say makes sense; however, there is a fundamental problem. Barack Obama is the leader of the Democrat party. I don't think their can be a worse face for the Democrat party. He is angering everyone he goes everywhere he goes.

Gianoulias may be corrupt but there is someone far worse that is the face of the Democrat party.
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imfedup
Fight the lies.
09:56 AM on 02/03/2010
Ridiculous.