Bad Loans

Giannoulias' competitors have called for clarification in his role approving troubled loans currently sinking Broadway Bank. In January 2010, his family's bank entered into a consent agreement with federal and state agencies in order to ward off bankruptcy. Under the agreement, Broadway will need to raise capital and stop paying dividends to the family.

Giannoulias, who ran for state treasurer by highlighting his work at Broadway Bank, was vice president and chief loan officer when the bank began to shift a large percentage of its disbursements to construction and development loans, which crippled the bank's ability to function. The bank has said that only nine percent of the $242 million in bad assets on Broadway's balance sheet were accrued during Giannoulias' time as VP.

This isn't the first time Giannoulias has responded to questions regarding loans that were approved while he worked at Broadway. In 2006, while running for treasurer, Giannoulias admitted the bank approved $12.9 million to Michael Giorango, a convicted bookkeeper and prostitution ring leader, in order to build restaurants and hotels. Giannoulias inspected some of the properties in Miami, Fla. that Broadway financed and met with Giorango while representing the bank. Giorango has yet to repay the loan and Broadway has sued to recoup the money.

From 2001 to 2005, Broadway bank provided $10 million to reported Russian gangsters Lev and Boris Stratievsky for development projects. The father, Lev, has passed away while the son, Boris, awaits trial for money laundering. Broadway bank has not been able to collect on the loan.

"If I knew then what I know now, obviously we wouldn't have made those loans," said Giannoulias.

Health Care

Giannoulias believes the U.S. health care system needs substantial reform. He has called for eliminating insurance companies' ability to deny coverage based on pre-existing conditions, lowering prescription drug costs and computerizing medical records.

While the Senate health-care reform bill does not contain a public option, Giannoulias still supports the idea of a government-run alternative.

Jobs

In order to spur job creation, Giannoulias has called for a one-year payroll tax holiday for workers making less than $75,000 a year. He also wants to establish a tax credit for companies with less than 50 people, if they hire new employees within a 90-day period. This would encourage companies to hire "now," said Giannoulias.

Giannoulias also wants to reroute $50 billion of the Troubled Asset Relief Program (TARP), and establish a lending program via the Small Business Administration (SBA). The program would provide loans to companies that have less than 100 employees and have shown a commitment to hiring more people.

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