Update: Broadway Bank is officially on the FDIC’s failed bank list, along with two other local banks.
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ABC7 reports that the FDIC has arrived, though it’s not yet on the FDIC’s failed banks list (eight seven so far today). In a 2009 cover story, “Alexi’s Albatross,” Mick Dumke told the story of Alexi Giannoulias and his family’s bank, which was founded in 1979; the piece explains a lot about how it went from one of the most profitable banks in the country and the most profitable in the state to where it is today.
Later in the piece:
Analysts say that when banks engage in high-risk lending they’re supposed to sock away extra money to protect them against the likely losses. From 2002 through 2006, Broadway paid out between $11.3 and $15.4 million a year in cash dividends, according to FDIC reports. In 2007 and 2008, as its earnings went south, it paid out $47.8 million and $34.5 million. The Giannoulias family owns all the stock in the bank’s holding company.
