The good news for leading Democratic Senate candidate Alexi Giannoulias is that regulators have not moved to close down Broadway Bank—which his family owns—though many observers have predicted they would since the bank’s books started to sink in 2008 under the weight of bad loans.
But the bank’s liberal lending policies and troubled health have been dogging Giannoulias’s political career, and today he received news almost as bad as a shutdown: Crain’s is reporting that the FDIC and Illinois banking officials have stepped in to place restrictions on Broadway. The bank must come up with more capital, stop paying out dividends—the Giannoulias family reaped millions of dollars from the institution even as its performance plummeted—and agree to additional oversight of its management.