3/4/10
I sent the following letter to Tribune columnist John Kass in response to a column he wrote on Alexi Giannoulias, who seems to have become something of a focal point for this blog:
3/4/10
Hi John,
I like your theory on Giannoulias and Broadway Bank, i.e., “that he really didn’t call any shots at the bank because he was the kid.” If one reads the portions of Giannoulias’s Tribune editorial board meeting reproduced on today’s editorial page, one gets the notion that even Giannoulias’s language and seeming unfamiliarity with standard terminology reveals that he was, rather than the big time senior loan officer who led Broadway to its Potemkin success, the guy who got coffee for the old man, so to speak.
For example, he said in the interview that “…less than 9 percent of the loans that are currently underperforming were even given out while I was the bank…” Banks don’t “give out” loans; they “make” or “book” loans. Yes, it’s only terminology, but a big time senior lender would be highly unlikely to use such sloppy terminology. When asked about the “cease and desist” order from bank regulators, Giannoulias answered “that’s sort of standard protocol for banks that…have consent decrees.” Well, as the kids would say, “Duh.” Yes, “cease and desist” orders are the standard fare of consent decrees, but the point, as young Mr. Giannoulias apparently missed, was the very existence of the consent decree itself. He then went on to say that “These were not reckless or risky loans.” They weren’t? Then why is there a problem? Why is the bank worthless? His answer to the bank’s precarious financial position seems to be that everyone was doing it. It would seem that a person who makes poor decisions, fiscally imprudent decisions, and then excuses himself by pointing out that everyone else was doing it would feel very comfortable in the U.S. Senate. So, in that sense, Mr. Giannoulias may be ideally suited for the job he is seeking.
Thanks, John.
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