CHICAGO – Regulators on Friday shuttered seven banks in Illinois, including the bank owned by state Treasurer Alexi Giannoulias, a Democrat who is running for President Barack Obama's old Senate seat.
Broadway Bank, with $1.2 billion in assets, was founded by Giannoulias’ father and is where the younger Giannoulias served as chief financial officer before running for statewide office. Giannoulias is known in credit union circles for getting the state to deposit $150 million in local institutions, including six credit unions.
Friday’s other failures were: $3.8 billion Amcore Bank; $485 million New Century Bank; $77 million Citizens Bank & Trust Co.; $200 million Lincoln Park Savings Bank; $132 million Peotone Bank and Trust Co.; and, $437 million Wheatland Bank of Naperville.
MB Financial Bank agreed to acquire the deposits of both Broadway Bank and New Century Bank. Republic Bank of Chicago agreed to assume Citizens' deposits, while Chicago-based Harris National Association agreed to acquire Amcore Bank's deposits.
Friday’s seven failures follow the nine banks seized the previous Friday and make a total of 57 bank failures so far this year.
There have been five credit union failures in 2010.
