ShoreBank: Alexi Giannoulias Has Questions to Answer
by Joel B. PollakAs the August 6th bailout deadline approaches, when the federal government must either give ShoreBank $75 million or take it over entirely, new evidence is emerging about ShoreBank’s connections to Chicago politicians.
The latest revelations raise new questions about the possible role of Illinois State Treasurer Alexi Giannoulias, who is also the Democratic nominee for U.S. Senate in the upcoming November election.
Alexi Giannoulias (D) - Source: Crain's Chicago Business
Shortly after Giannoulias took office in 2007, the Illinois Student Assistance Commission (ISAC), a state-run college fund, invested $12.7 million in ShoreBank. Some of ISAC’s funds came from parents who invested in Bright Start, a program to help them save for their children’s college tuition.
As of this week, according to Crain’s Chicago Business, ISAC’s ShoreBank stake has lost over 80% of its value–which not even a bailout will restore.
The $12.7 million investment was ISAC’s “first and only direct investment in a privately held company,” according to Daniels. Furthermore, ISAC’s investment made the tuition program the single largest shareholder in ShoreBank.
That same year, 2007, marked the beginning of ShoreBank’s financial decline, which we now know resulted from investments far outside the bank’s “traditional” market in poor communities on Chicago’s South Side.
As state treasurer, Giannoulias was responsible for ISAC, even though the decision to invest in ShoreBank was taken by ISAC’s executive director. His role in Bright Start, in particular, has been questioned before. On Giannoulias’s watch, Bright Start lost $150 million in a fund that invested in sub-prime mortgages. Giannoulias also bought an SUV for his office using $26,000 of Bright Start’s management fees.
Giannoulias has spun his record as a success. But there is no way to spin ISAC’s ShoreBank investment. No reasonable investor–not even one working for the government–would choose to buy the largest stake in a business specializing in risky loans as their first investment in a privately held company.
The only reasonable conclusion is that ISAC invested in ShoreBank for political, not financial, reasons.
The timing is especially suspicious. ISAC only invested in ShoreBank in 2007, after Giannoulias arrived in Springfield, and at a time when Giannoulias was actively involved in management changes at Bright Start.
Giannoulias should be asked about why ISAC chose to invest in ShoreBank, and about his role in the decision. He should also be asked whether the state participated in ShoreBank’s management decisions through ISAC.
There is much more to the ShoreBank story. Its patrons are running out of excuses, and running out of time.
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40 Comments
WOW. These Chicago politicians just keep getting dirtier and dirtier. They have NO shame!
He'd make a great treasurer. As long as the folks from Enron and Tyco aren't available. They'd be more qualified, of course.
Liberaljew has a picture of this guy taped to the ceiling over his bed I imagine. Next to the pictures of Hitler and Obama of course.
The Poster Child for Chicago corruption. Reading this guys history is like a training ground for a how to guide on how to be a corrupt politician. It looks a lot like another guy. Obama.
he is a swine amongst swine…
Nobody turns 'em out quite like Crook County,Illinois. The place that stole the election for JFK back in 1960. The last precinct in the country that reported? Chicago's notorious First Ward. That was under old man Daly- Richard J.
Now we have son of cheiftain, Richard M.
And little has changed. From the cesspool of so-called 'enlightened academics' (communist radicals) in Hyde Park
where Billy Ayers and wife Bernadine Dohrn live- and where Obama was launched, to the endless supply of hack
corrupt politicians, many who end up in jail, like Stratton, Kerner, Walker, Ryan- and maybe soon Blago-
comes banker to the mob, Alexi Giannoulias.
He is a particularly slimy character; one must count their fingers after shaking his hand. If his opponent wasn't famous RINO weenie Mark Kirk he would be down by forty points instead of four. But even the locals won't vote for
this loser…
This is the price we pay for allowing institutions that are not self-sustaining and self-regulating to exist. Because their structure and operations are not self-sustaining in nature, this allows politicians to use government to introduce corruption (the real laugh being said corruption is for the benefit of regulating the outcome – in other words more corruption) into the system that always benefits one group over the others and this is not sustainable policy either.
Lovellian economics teaches us that systems, economic societies and institutions that are not designed in such a manner to be self-sustaining and self-regulating will always fail and destroy the underlying society they are intended to serve. How many times do we have to learn this lesson that corruption is a fire that cannot be put out, so it is best to never allow it the fuel and opportunity to burst into flame?
Just wait this crook will make it to the senate. It's Chicago politics don'tcha know.
I truly pity the good Illinois citizens who have to put up with such BS. Truly hope they don't vote this scum into office.
The stupid voters in Illinois seem to be interchangable with the stupid voters in California.
To vote for corruption makes you corrupt and stupid.
Human progress is neither automatic nor inevitable… Every step toward the goal of justice requires sacrifice, suffering, and struggle; the tireless exertions and passionate concern of dedicated individuals.
Martin Luther King, Jr.
The gnashing of teethers create nothing and flock to the infested ones such as Obama and this loser.
Ah California…. A great state. There you can vote even if you aren't a citizen! Isn't that nice of them? They like to be all inclusive.
Chicago, the bedrock of corruption. We have been victimized enough by what they crank out up there, obama, etc.
I can't wait to fight our way through these Nov elections, and the Voter Fraud that these Corrupto-o-crats pull off. Team Obama has plenty of our Tax Money set aside to work for Dems in Oct. Watch the money fly around.
We need to watch the polls so that we never have to deal with these "types" again. I hope that honest Americans are ready for their slick "dirty politics" and will bring friends and family to the polls so that we can be free again!
A poster of Chicago corruption would look more like a "We are the world" poster, very inclusive!
Look on the bright side of Illinois politics dcase…………………Oh wait…….this is Illinois, there is no bright side…
One thought though……..The rest of the country has finally seen what some of us have had deal with for most of our voting life. Illinois is truly a place where if you are a Republican "your vote does not count". It will be swept aside by someone residing in Mt. Olive Cemetery. In this case though I'm not sure that even the cemeteries voters can help Giannoulias……..
and you forgot my favorite in your list…………..Dan Rostenkowski…….he was a laugh…….
Chug, chug, tweet, tweet, shining lights, bells and whistles, now rolling in front and center are the dirty, corrupt, Chicago politicians.
TAKE AMERICA BACK – NOVEMBER, VOTE THE DIRTY COMMIE RATS OUT
No doubt.
"In the beginning of a change, The Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a patriot." — Mark Twain
I am positive that the LSM will be all over this story.
/sarc/
Note that Republicans blocked a bill today that would have included a lot of money for community banks like ShoreBank ($30 billion for community banks with less than $10 billion in assets – such as those which are failing like ShoreBank?). It's not dead yet. http://www.breitbart.com/article.php?id=D9H8QRNG3...
Watch for the Republicans to give in and let it pass before the August recess – which by a remarkable coincidence fits the August 6 deadline for a bailout as mentioned by Joel Pollak above..
Unfortunately, Alexi is actually ahead of Kirk in the latest Rasmussen poll. We certainly face another lesser of evils choice this year, but voting for the greater of evils (directly or by not voting at all) should not be an option. Let this be a lesson to all of us – start looking now for a really good candidate to support in 2014 against Durbin. We blew it by not being united behind a better candidate in the primary. Never again.
"Ah California…. A great state"
Not so great anymore…But there's still bumper to bumper traffic in LA most of the day…
Like they're all passing thru or homeless, they just live in their cars…
'Rosty' was a DC Crook from Chicago; suppose that's different.
A little…
once again, don't put too much stock in that poll, either. Kirk is weak,no doubt- but Brady will trounce Quinn and it is inconceivable that anyone downstate will vote for Alexi. As a matter of fact, he won't carry the collar counties, either.
Bad year for bad candidates- and he is as bad as aynbody…
I bet this is all made up. Joel, are you a JournoList member? These Dem's are as innocent as the day is long.
I thought my state of Louisiana was a cesspool of politics but these assclowns make LA politicians look like kindergarteners.
Great point again dcase……………….. He need's to win the collar counties………..and he'd need to win "all" not some of them. Dupage and Will Counties (even with all the Libs in Dupage) will not vote for anyone associated in any way with a bank……………………..far too many vacant homes and store fronts in both counties for that………………..
We all must have misunderstood when Harry "Dunghill Brain" Reid took over the senate in 2007- yes demoNrats the dems have been in charge in the House and the Senate since 2007(including the budgets – remember the "blue dog democrats" were going to be a whole new kind of pro-abortion but fiscally responsible kind of demoNrat – another demoNrat LIE) – because him and SanFranNan were going to "DRAIN THE SWAMP" – remember?
The demoNrats drained the swamp so that the only thing in the swamp were the swamp monsters like them. Giannoulias will feel right at home.
Don't ever forget that Paul Krugman was an economic adviser to Enron so he's still available and advising.
Is it true that "Giannoulias" is Greek for "Obama?"
MyKu:
Alexi will find
answers to questions such as,
"How's your cellmate hung?"
I guess the concept of "conflict of interests" would slow down Chicago politics…..or anywhere else for that matter.
Keep it up Joel — you gotta win in November. This guy is an Obamatron and a dirty bankster. Keep it up!
Shore Bank has many issues – this is just the being.
Alexi is BO's pal – he has no background or the resume to a senator but he is a machine Chicago dem.
His service as treasurer is very poor – the more we dig the worse it will be.
Kirk should be pushing as well.
Alexi is the wrong for Illinois – clean house now -
What a sad state I live in? The real sad thing is that this is just the tip of the iceberg…
It just amazes me that the government can "regulate" everything we do, but there is nothing to regulate what government does. This is so upside down.
It is going to take a long and concerted effort by ALL freedom loving Americans to get things put right again.
First salvo in November!
Alexi Giannoulias, you stink! Please take a bath sir. Take a bath in November….
Minus points for mentioning the pit of hell known as LA!
The traffic is terrible though isn't it? I am forever grateful I have no need to travel on those wretched "freeways" very often. If I had to do that daily I'd likely go insane.
Mago
Yeah sorry about mentioning LA…It's never been all that great here, but now, sadly, worse….(Terrible leadership, a commie City Council, ineptness and corruption abound)…..I try to avoid any kind of travel unless, it's between 11AM-2PM….
any other time guaranteed bumper to bumper…esp the 101-405-10- et all…pretty much a mess..
It's too bad Mark Kirk pretty much walks in lockstep with BO's policies.
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