Broadway Bank
Former Chicago, Illinois bank that operated from 1979 until its regulatory closure in 2010.
Last updated August 26, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
Broadway Bank was a privately owned Chicago bank that operated from 1979 to 2010 under the ownership and management of the Giannoulias family. It was established by Alexis Giannoulias, a Greek immigrant, and grew into a locally significant institution serving individuals, businesses, and community customers in the Chicago area. The bank remained closely associated with the Giannoulias family throughout its existence: Alexis founded it, his son Demetris became a senior officer and later chief executive, and another son, Alexi Giannoulias, served as a vice president and senior loan officer from 2002 to 2006. During the mid-2000s, Broadway Bank was regarded as a successful Illinois institution. In 2006, less than 0.5 percent of its loan portfolio was reported to be more than 90 days overdue. The bank also held accounts for prominent Chicago-area and Illinois public figures, including Barack Obama, Illinois Secretary of State Jesse White, and Chicago alderman Walter Burnett Jr. Its profile increased further because of Alexi Giannoulias's public career. He left the bank in 2006 after being elected Illinois state treasurer and later became the Democratic nominee in the 2010 election for the United States Senate seat previously held by Obama. The bank's later history was shaped by deteriorating credit quality and losses associated with loans and investments. One publicly discussed transaction was a 2002 loan of $1 million to Loren Billings, secured by a building on West Washington Street in Chicago that served both as her residence and as the Museum of Holography, which she had founded. In 2006, Billings's son sued Broadway Bank, alleging that she had dementia and had not been able to enter the transaction appropriately. The bank prevailed in Cook County court in 2008, although the matter was still being pursued on appeal in late 2009. The transaction became part of broader public scrutiny of the bank's lending practices. By 2009, Broadway Bank was burdened by bad loans and declining asset values. On January 26, 2010, it agreed to a regulatory plan requiring prior approval for dividend payments to the Giannoulias family, an outside review of senior management, an additional $19 million in reserves, a further $50 million capital raise within 90 days, and a less risky investment strategy. Bank executives also cited losses in investments that had been rated triple-A when purchased but had subsequently fallen substantially in value. Broadway Bank was seized at the end of business on April 23, 2010, by the Illinois Department of Financial and Professional Regulation's Division of Banking. The Federal Deposit Insurance Corporation became receiver, and MB Financial Bank assumed the bank's deposit accounts. The closure ended Broadway Bank's 31-year existence and became a major issue in Alexi Giannoulias's 2010 Senate campaign. The FDIC reported that it and MB Financial Bank would share $878.4 million in losses, with an estimated $394.3 million charged to the federal Deposit Insurance Fund. Broadway Bank was one of seven Illinois banks closed on that date.
History
Broadway Bank was founded in Chicago in 1979 by Alexis Giannoulias, a Greek immigrant who built the institution as a privately owned local bank. The bank's identity remained closely connected to the Giannoulias family. Alexis's sons Demetris and Alexi were involved in the business, with Demetris becoming a senior officer and ultimately chief executive, while Alexi held the positions of vice president and senior loan officer between 2002 and 2006. The institution developed a customer base among Chicago-area households and businesses. It offered conventional banking and lending services and became sufficiently prominent to hold accounts for public figures including Barack Obama, Jesse White, and Walter Burnett Jr. Broadway Bank's strongest reported period came in the mid-2000s. In 2006, fewer than 0.5 percent of its loans were more than 90 days overdue, and the bank was described as highly successful. That same year, Alexi Giannoulias left the institution after winning election as Illinois state treasurer. The bank nevertheless faced questions about individual loans and its risk profile. In 2002, it made a $1 million loan to Loren Billings secured by a West Washington Street property that was both her home and the site of the Museum of Holography. Billings's son later alleged that she suffered from dementia when the transaction occurred. Broadway Bank won the case in Cook County court in 2008, but the dispute remained under appellate consideration in 2009. The loan was subsequently discussed in the political scrutiny surrounding the Giannoulias family and the bank. Broadway Bank's condition deteriorated during the late-2000s financial crisis. By 2009, it was carrying bad loans and had suffered losses on investments whose values had declined after purchase. In January 2010, regulators imposed a corrective plan. The bank was required to build reserves, seek new capital, submit senior management to outside evaluation, obtain regulatory approval before paying dividends to the Giannoulias family, and adopt a more conservative investment approach. The plan called for $19 million in additional reserves and another $50 million in capital within 90 days. The measures did not restore the bank to viability. On April 23, 2010, the Illinois Department of Financial and Professional Regulation's Division of Banking seized Broadway Bank and appointed the FDIC as receiver. MB Financial Bank received the bank's deposit accounts. The FDIC stated that the loss-sharing arrangement involving it and MB Financial Bank totaled $878.4 million, including an estimated $394.3 million cost to the federal Deposit Insurance Fund. Broadway Bank was one of seven Illinois banks closed that day. The closure occurred during Alexi Giannoulias's campaign for the United States Senate. Because he had been a senior bank executive and because the bank was family-owned, Broadway Bank's loans, investments, and collapse became central subjects in the campaign. The institution ceased operations in 2010 after approximately three decades as a Chicago banking business.
- 2010
Regulatory corrective agreement
[1]The bank agrees to reserve-building, capital-raising, management-review, dividend, and investment restrictions.
- 2010
Broadway Bank is closed
[1]Illinois regulators seize the bank on April 23. The FDIC is appointed receiver and MB Financial Bank assumes the deposit accounts.
- 2009
Financial condition deteriorates
[1]Broadway Bank becomes burdened by bad loans and declining investment values, prompting increased regulatory scrutiny.
- 2008
Bank wins Cook County loan lawsuit
[1]Broadway Bank prevails in a Cook County court case brought by Loren Billings's son concerning the 2002 loan.
- 2006
Alexi Giannoulias leaves the bank
[1]Alexi Giannoulias departs Broadway Bank after being elected Illinois state treasurer. The bank is also described as highly successful, with less than 0.5 percent of loans more than 90 days overdue.
- 2002
Loan to Loren Billings
[1]Broadway Bank extends a $1 million loan secured by Loren Billings's West Washington Street building, which housed both her residence and the Museum of Holography.
- 1979
Broadway Bank is founded in Chicago
[1]Alexis Giannoulias establishes Broadway Bank as a privately owned Chicago banking institution.
Products and positioning
A locally oriented, privately owned Chicago bank serving retail and commercial customers, with a strong family-ownership identity.
Banking services
Retail banking
Broadway Bank served individual customers through deposit accounts and related local banking services. Public references identify account holders and the transfer of deposit accounts to MB Financial Bank after the 2010 closure, but do not provide a complete historical product catalog.
Business banking
Commercial lending
Commercial and secured lending formed an important part of the bank's business. The publicly documented $1 million loan to Loren Billings, secured by a Chicago property, illustrates the type of real-estate-backed lending that later attracted scrutiny.
Bank investments
Investment portfolio
Broadway Bank maintained an investment portfolio that included securities described by management as triple-A rated when purchased. Some investments later lost significant value, contributing to the bank's financial pressure and the regulatory demand for a less risky investment strategy.
Controversies
2010
Questionable loans and political scrutiny
The bank's loan practices and deteriorating financial condition became politically contentious during Alexi Giannoulias's 2010 campaign for the United States Senate. Public discussion focused on the relationship between the family-owned bank, troubled loans, and Giannoulias's prior executive role.
2006
Loren Billings loan litigation
Loren Billings's son challenged a Broadway Bank loan, alleging that she had dementia when the transaction was made. The bank won in Cook County court in 2008, while appellate proceedings were still being pursued in late 2009.
Brand decisions
2010
Accept a regulatory recovery planStrategyBackground
By January 2010, Broadway Bank was carrying bad loans and had experienced losses on investments that had declined in value.
Action taken
The bank agreed to add $19 million to reserves, raise another $50 million within 90 days, obtain regulatory approval for family dividend payments, commission an external review of senior management, and reduce investment risk.
Aftermath
The corrective measures did not prevent the bank's seizure later in the year.
Required additional reserves and capital raise. $19 million in additional reserves and $50 million in additional capital targeted within 90 days (January 26, 2010)
2010
Regulators close Broadway BankOtherBackground
The bank's capital and asset-quality problems persisted despite the January corrective agreement.
Action taken
Illinois banking regulators seized Broadway Bank and appointed the FDIC as receiver. MB Financial Bank received the deposit accounts.
Aftermath
Broadway Bank ceased operations, and the FDIC estimated a $394.3 million cost to the federal Deposit Insurance Fund.
Estimated loss-sharing and Deposit Insurance Fund cost. $878.4 million in shared losses; estimated $394.3 million cost to the federal Deposit Insurance Fund (April 23, 2010)
Sources1 sources
Cite this profile: Cite the canonical profile. /brand-wiki/broadway-bank · Editorial policy · How profiles are compiled