Chicago Mob Linked Alexi Giannoulias wants bank crackdown, but faces own questions

Crain's Chicago Business reports:

Senate hopeful Alexi Giannoulias on Tuesday released his plan to crack down on financial speculators and big banks that have driven the country into its worst financial crisis since the Depression.

But in the process, he faced tough questions about perhaps risky decisions made by the Giannoulias family-owned Broadway Bank, where Mr. Giannoulias was a senior official until becoming state treasurer three years ago and which now faces very severe $$$ problems.

At a press conference, Mr. Giannoulias said non-bank lending institutions should face the same oversight rules that govern banks, with all over-the-counter derivative transactions taking place only on new public exchanges.

Banks themselves should have to raise more capital, and large banks should have to contribute $150 billion to $200 billion over the next decade to create a federal bail-out fund for future financial emergencies, the Chicago Democrat said. And a new consumer agency should regulate home loans, credit card fees and payday loans, he said.

No word yet from Chicago Mob associate John D'Arco Jr. on this one.