Chicago Adult Entertainment: Obama Friend’s Bid for Senate Seat Threatened by Bank’s Losses

… It’s a challenging environment to raise capital,” he said. “An enforcement order from regulators would tend to raise some alarms among investors.”
Broadway was one of 188 undercapitalized banks out of more than 8,000 nationwide in the fourth quarter of 2009, Anderson said. While the broader economy shows signs of improvement, some community banks continue to struggle. Regulators are closing them at the fastest pace in 16 years.
Broadway could be closed if additional loans go bad, even during the 90-day period covered in the consent order signed Jan. 26, Anderson said.
Kirk, 50, has highlighted Broadway’s struggle and said a closing would pose “significant problems” for Giannoulias, 33.
Some of the Broadway loans that have generated controversy involve Michael Giorango, a convicted bookmaker and prostitution-ring promoter. It has also made loans to convicted Illinois influence peddler Antoin “Tony” Rezko and a family accused of having connections to organized crime.

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