Feds put off Giannoulias family's Broadway Bank report until after election
The FDIC is supposed to issue the report six months after they take over a bank.
That is, unless there is a Democratic administration and the man running for senate in the president's home state would be embarrassed by revelations in such a report.
Normally, a final report from the FDIC on the seizure of a bank comes six months after the seizure. Broadway Bank got seized on April 23rd of this year, and six months is, well, today. The Chicago Tribune reports that the FDIC is going to wait until mid-November instead to reveal its findings on what created the collapse of the bank, which lets Alexi Giannoulias off the hook before Election Day.
Why might the report make Giannoulias look bad?
The release of the report before the election could have been another political headache for Giannoulias in the close contest with Republican Mark Kirk. Giannoulias has been on the defensive over his role in loans Broadway Bank made to convicted felons while he was a senior loan officer, as well as other troubled lending that contributed to the bank's collapse early this year.
The inspector general of the Federal Deposit Insurance Corp. typically issues a "material loss" report, which details issues in a bank's failure, about six months after the institution is taken over by the regulators. Broadway, which the FDIC accused of "unsafe banking practices," was closed on April 23, at a cost to the FDIC of $394.3 million.
When it issued an interim report in August, the inspector general's office said the final report would be issued on or before its Nov. 14 due date. On Friday, agency lawyer John Davidovich said the report is not expected within the next two weeks.
Just a coincidence I'm sure.