FDIC Seeks $104M Over Bank's Real Estate Loan Losses

Law360, New York (March 7, 2012, 10:41 PM EST) -- The Federal Deposit Insurance Corp. filed suit Wednesday seeking to recover $104 million that former executives of Chicago-based Broadway Bank, including relatives of onetime U.S. Senate candidate Alexi Giannoulias, allegedly lost in approving 17 bad real estate loans.

The bank allegedly made loans to fund out-of-state construction projects it couldn't adequately monitor, lent to uncreditworthy borrowers with a history of bad loans and didn't pay enough attention to whether loan guarantors had enough liquidity to protect the bank, the FDIC says.

The bank was closed by...
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