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From the print edition:

Giannoulias family bank ordered to raise capital

Regulators describe bank owned by Senate hopeful's family as 'undercapitalized'

By John Chase and Becky Yerak, Tribune reporters

The family bank that helped launch U.S. Senate candidate Alexi Giannoulias' political career agreed to tougher government oversight as part of a turn-around plan announced Wednesday, less than a week before the primary election.

Broadway Bank, where Giannoulias worked for his father before entering politics, signed a consent order with federal and state banking regulators to raise millions of dollars in capital, restrict dividends and hire an outside firm to assess the bank's top management. The move indicated regulators have serious concerns about the bank's health.

The agreement comes at an inopportune time for Giannoulias, who touted his experience as the bank's chief lending officer in getting elected state treasurer in 2006. A Tribune poll this week showed Giannoulias leading rivals Cheryle Jackson and David Hoffman in the race for Tuesday's Democratic primary for U.S. Senate.

Jackson called on Giannoulias to withdraw from the race. Hoffman's campaign said the news "provides further evidence of what a disaster Mr. Giannoulias would be as the Democratic nominee for Senate."