Alexi Giannoulias | |
|---|---|
 Giannoulias in 2010 | |
| 38thSecretary of State of Illinois | |
| Assumed office January 9, 2023 | |
| Governor | JB Pritzker |
| Preceded by | Jesse White |
| 72ndTreasurer of Illinois | |
| In office January 8, 2007 – January 10, 2011 | |
| Governor | Rod Blagojevich Pat Quinn |
| Preceded by | Judy Baar Topinka |
| Succeeded by | Dan Rutherford |
| Personal details | |
| Born | Alexander Giannoulias (1976-03-16)March 16, 1976 (age 49) Chicago,Illinois, U.S. |
| Political party | Democratic |
| Spouse | |
| Children | 3 |
| Education | University of Chicago Boston University (BA) Tulane University (JD) |
Alexander Giannoulias (/əˈlɛksidʒəˈnuːliəs/jə-NOO-lee-əs; born March 16, 1976) is an American financier and politician who is theSecretary of State of Illinois. He previously served as the 72ndIllinois Treasurer from 2007 to 2011.
ADemocrat, Giannoulias defeatedRepublicanState SenatorChristine Radogno with 54 percent of the vote in theNovember 2006 election for Illinois Treasurer. He became the first Democrat to hold the office of Illinois Treasurer in 12 years. Giannoulias was a candidate for U.S. Senate in the2010 elections. He won the Democratic primary, but narrowly lost the general election in November 2010 toRepublicanMark Kirk. On June 26, 2018, he was confirmed to theChicago Public Library Board, marking his first return to public service since leaving the Treasurer's office.
Giannoulias was elected secretary of state in the2022 election, defeatingDan Brady to succeed longtime incumbentJesse White.
Giannoulias was born inChicago, toGreek immigrants. His mother, Anna, is fromChania, and his late father, Alexis, was fromKalavryta.[1] He has two older brothers, Demetris and George.[2] Giannoulias attendedThe Latin School of Chicago and then the University of Chicago before transferring toBoston University. Giannoulias graduatedcum laude with a bachelor's degree ineconomics. He then moved to Greece to play basketball withPanionios B.C. for a year (1998–99).[1]
Giannoulias had played basketball atThe Latin School of Chicago,[3] and playedDivision III basketball at the University of Chicago. He then playedDivision I basketball at Boston University.[citation needed]
After returning from Greece, Giannoulias attendedTulane University Law School. Upon earning hisJ.D. degree, he returned to Chicago to take a management position withBroadway Bank, a community bank in Chicago's Edgewater neighborhood founded by his father in 1979.[1]
Giannoulias served on the board of directors of the Community Banker's Association of Illinois Legislative Committee, the South Side/Wabash YMCA, and theEdgewater Chamber of Commerce. Giannoulias also founded and chaired the AG Foundation, a not-for-profit charity that donated money to treat child-related illnesses, curb poverty and assist disaster relief organizations.[4]
Although the state Democratic Party led by House Speaker Mike Madigan backed his opponent, Paul Mangieri, in the primary, Giannoulias was endorsed by U.S. RepresentativesJan Schakowsky, Jesse Jackson Jr.,[5] and by then-SenatorBarack Obama.[6][7]
TheChicago Sun-Times news group also endorsed Giannoulias in the general election, arguing that he would "bring valuable private enterprise experience from banking to the job" and praising his "creative" policy proposals like asecurities lending program, improving Bright Start, and promoting green energy.[8] Running on a campaign platform that emphasized comprehensive ethics reform for the Treasurer's office,[9] Giannoulias won the March 2006 primary and went on to defeat Republican candidate Christine Radogno in the general election.[citation needed]
On his first day as State Treasurer, Giannoulias "signed an executive order to enact the most comprehensive, widest-ranging ethics package of any elected official in the state", according to his official state website. "The order prohibits [the Treasurer] from accepting contributions from banks, Treasurer's Office employees and contractors who do business with the office."[4] He also moved to foreclose on two debt-ridden hotels built in the 1980s by politically connected insiders inSpringfield andCollinsville.[10][11]
In 2009, Giannoulias worked to encourageWells Fargo to cooperate in the sale of Chicago-based clothing manufacturerHartmarx Corp., which was at risk of liquidation and had filed for Chapter 11 protection. The success of this sale with Giannoulias' support saved over 600 jobs at an Illinois Hartmarx factory that otherwise would have been closed.[12]
Wells Fargo, a primary lender for Hartmarx, is also "the money custodian for the treasurer's office, holding its cash and other financial assets." Giannoulias publicly challenged Wells Fargo's obstruction of the sale, stating that "[Wells Fargo's] intention to liquidate Hartmarx rather than allow a sale to buyers intent on keeping the company running will significantly jeopardize the business relationship between Wells Fargo and the state of Illinois."[13]
Giannoulias cited the fact that Wells Fargo received over $25 billion in federalTARP bailout funds as further reason why the bank should have supported the sale of Hartmarx instead of pursuing the company's liquidation. In a public statement, Giannoulias said, "We expect companies that get state and federal taxpayer money to invest it in American jobs and American workers, not destroy companies that still have a chance to succeed."[14]
Giannoulias launched the "Green Rewards" program, which gives a $1,000 rebate to Illinois residents who purchase a newhybrid or otherfuel-efficient vehicle.[15]
In January 2009, the state ofIllinois purchased $10 million worth ofIsrael Bonds. Giannoulias said: "This is a good way to safely diversify our portfolio, especially during a time when some of our other investment options aren't generating as much revenue because of the market fluctuations here in the United States."[16] According to Giannoulias, the Israel Bonds will mature in three years with a 2.43% rate of return, compared to U.S. government bonds yielding a 1.51% return during the same period.[17]
In addition to revamping the Bright Start savings program, Giannoulias created several new scholarship programs for Illinois college students.
The Fallen Heroes Scholarship Program, which Giannoulias designed in a partnership with theIllinois Department of Veterans Affairs, awards an initial investment of $2,500 in college savings to children who have lost a parent in military service since 2001.[18]
In 2008, Giannoulias announced the creation of the Bright Start Scholarship Program, which will award $3.5 million in need-based scholarships over 7 years, until 2015.[19] More than 250 students received scholarships in 2008, the first year of the program.[20] The scholarships were designed by Giannoulias as apublic–private partnership, with the funding for the scholarships donated by a private firm at no cost to the state or taxpayers.[21] Giannoulias also developed the Cultivate Illinois Excellence in Agriculture scholarship in 2008. This program awards ten $2,000 scholarships each year to students pursuing degrees in agriculture-related fields.[22]
As Illinois Treasurer, Giannoulias was responsible for overseeing the Illinois' Bright Start college saving program. Bright Start provides parents with the opportunity to invest in a tax-free account to save for their children's college education. Enrollees are eligible for several state tax benefits and can invest in various stock and bond options.[23] Before Giannoulias took office, SavingForCollege.com ranked Bright Start 47th out of 48 in the nation.[24] Giannoulias helped reform the program,[25] and Bright Start went from being one of the worst programs in the country to one of the best. Morningstar called the transformation "a Cinderella story."[26]
In 2008, one of the twenty-one funds in Bright Start, Core Plus, began experiencing excessive losses and eventually lost 38% of its value. In the same year, the overall Bright Start program's benchmark grew by 5.4%. Within the Illinois Bright Start program, 2.5% of investors had invested their entire portfolios in Core Plus and suffered a 38% loss; others experienced smaller losses.[27]
As the Associated Press reported, "It turns out the Oppenheimer team handling Core Plus — a team the company has now fired — was putting money into risky, complicated investments that tanked in 2008 amid the general financial meltdown."[24] In 2009, Oregon,[28] Nebraska,[29] New Mexico, Texas, Maine and Illinois[30] all investigated OppenheimerFunds' handling of their college savings programs for impermissible investments and misconduct. Oppenheimer was selected to lead the program by Giannoulias' predecessor, former Illinois TreasurerJudy Baar Topinka, in December 2006, a month before Giannoulias took office.[31]
After the credit markets collapsed in the fall, new contributions into the fund were halted on December 4, 2008.[24] In January 2009, the treasurer's office announced that no further contributions would be made to the Core Plus fund and that the state would be investigating the losses.[32]
According to the Associated Press, Illinois was the first state to take action.[24] In January 2009, at the request of Giannoulias, theIllinois Attorney General initiated its own probe of OppenheimerFunds, issuing subpoenas on the company. At the time, the losses attributable toOppenheimerFunds' impermissible investments were estimated to be "in excess of $85 million."[27]
Despite the problem associated with OppenheimerFunds' handling of Core Plus, Bright Start remains a highly regarded 529 college savings program. In April 2009,Consumer Reports studied college savings programs across the country "to see how well they performed during last year's stock-market plunge."[33]Consumer Reports "found five that are worthy of an A," and ranked Bright Start as one of the top five college savings programs in the nation. In April 2009,Money Magazine selected Bright Start as one of the "best low-risk 529 plans."[34] In December 2009,Kiplingers selected Bright Start as one of the best state 529 plans in the country, choosing it as the best plan for "low fees."[35]Morningstar, Inc., which had previously ranked Bright Start in its top 5 in 2008, has acknowledged the issues relating to Core Plus but, citing Illinois' swift action in dealing with the issue, reported in 2009 that "the plan still holds plenty of appeal."[36]
In December 2009, the Illinois Attorney General's Office and the Office of the State Treasurer announced that Illinois had reached a settlement with OppenheimerFunds.[37] Eligible accountholders who lost money in Core Plus would receive $77 million from OppenheimerFunds. As the scope of the settlement was expanded during negotiations with OppenheimerFunds to include more accountholders, the total loss addressed by the settlement is $150 million.[38] Those families invested in the fund were eligible to receive just over half of their investment back.[39]
The Treasurer's Office used some of the investment fees from the Bright Start program to purchase a hybrid vehicle "so Bright Start staff have a way to travel the state and enroll families in the program" and used to promote other Treasurer's Office programs. Giannoulias never used the vehicle for personal business.[40]
Giannoulias started a pilot program in 2007 to sell the abandoned contents ofsafe deposit boxes on eBay, scrapping the state's annual live auctions.[41]
From 2002 to 2006, Giannoulias worked as a senior loan officer and vice president atBroadway Bank, a community bank founded by his father. When he left the bank in 2006, it was one of the most profitable banks in Illinois.[citation needed] Four years later, on January 26, 2010, Broadway Bank entered into a consent decree with the FDIC that ordered Broadway to increase its capital.[42] Two dozen small- to medium-sized banks in Illinois and nearly 200 banks nationwide have failed since the October 2008 economic crash.[43]
Broadway Bank's struggling financial situation is due to delinquent real estate loans and foreclosed properties. From 2002 to 2006, Broadway's lending in construction and development loans increased sixfold, to $356 million. During Giannoulias' tenure, Broadway also increased its brokered deposits, which generally command high interest rates. When Giannoulias left the bank in 2006, brokered deposits made up 80% of all deposits at Broadway.[44] When the housing market crashed in late 2008, commercial real estate loan performance deteriorated and Broadway Bank, which had focused its lending in real estate, suffered.[45]
Nine percent of the value of the bad loans originated while Giannoulias was chief loan officer.[45]:1
At the end of business on Friday, April 23, 2010 (2010-04-23), theIllinois Department of Financial and Professional Regulation, Division of Banking, seized Broadway Bank and appointed theFederal Deposit Insurance Corporation (FDIC) asreceiver. The FDIC in turn named MB Financial Bank as the institution receiving Broadway Bank's deposit accounts. The FDIC announced that it and MB Financial Bank would share $878.4 million in losses, for a cost of $394.3 million to the federalDeposit Insurance Fund.[46]
Broadway Bank made real estate development loans toTony Rezko, a political fundraiser and real estate developer who was later convicted of fraud and money laundering. Broadway Bank made these loans before Rezko was investigated, indicted, or convicted for any crimes, but not before the criminal conduct took place.[47][failed verification] Before his conviction, Rezko also received loans from other Chicago banks, including Bank of Chicago, First Bank and Trust of Illinois, GE Capital, Harris Trust and Savings, LaSalle Bank, and Manufacturers Bank.[47][failed verification]
Giannoulias himself did not make the Rezko loans.[48]
Rezko defaulted on loans made by Broadway, and, in 2006 Broadway was the first bank to foreclose on one of Rezko's delinquent loans, forcing him to declare bankruptcy.[49] Broadway Bank also refused to cover nine bad checks written by Rezko for a total of $450,000 in early 2008.[50]
Giannoulias never accepted campaign contributions from Rezko.[38]
Broadway Bank also loaned money for real estate developments to Michael Giorango, who has been convicted for prostitution and bookmaking.[7] Giannoulias has stated that he was not part of the loan committee that approved the loans to Giorango.[51]
Giannoulias ran against Republican nomineeMark Kirk, Green Party nomineeLeAlan Jones, and Libertarian nomineeMike Labno. As a candidate, Giannoulias pledged to create a "Senate Progressive Caucus", akin to theCongressional Progressive Caucus (CPC) in theHouse of Representatives.[52]
On March 2, 2009, Giannoulias stated on CNBC that he was forming anexploratory committee in order to assess a potential candidacy for the US Senate in 2010. On July 26, 2009, he officially announced his candidacy for the United States Senate at theHilton Chicago, the same place then-Senator Barack Obama endorsed Giannoulias for State Treasurer in 2006. He was introduced to the crowd by CongressmanBill Foster.[citation needed]
Even though Giannoulias was not endorsed by President Obama in the primary and the Obama White House attempted to recruit a different candidate for the race,[39] he was elected the Democratic nominee for US Senate in Illinois in the February 2, 2010, primary, with 38.9% of the vote.David H. Hoffman received 33.7% andCheryle Jackson received 19.8%.[53]
Giannoulias was endorsed byPlanned Parenthood, theService Employees International Union (SEIU),AFSCME, theAFL–CIO, theLeague of Conservation Voters, theHuman Rights Campaign, theChicago Sun-Times, and theSierra Club (Planned Parenthood, the League of Conservation Voters, and the Human Rights Campaign had all supported Rep.Mark Kirk, Giannoulias' Republican opponent, in previous races).[54][better source needed][55]
On May 28, 2010, theHuman Rights Campaign (HRC) endorsed Giannoulias, calling him "a strident supporter of LGBT equality – including supporting marriage equality, repeal of the Defense of Marriage Act, repeal of "Don't Ask, Don't Tell" and supporting an inclusive Employment Non-Discrimination Act."[56][better source needed]
Among his early endorsers wereJames Houlihan andManny Flores.[57] U.S. SenatorDick Durbin, the Assistant Majority Leader and second-highest ranking Democrat in the Senate, endorsed Giannoulias and served as the chairman of the Giannoulias campaign.[58]
During Giannoulias' bid for the Senate, he faced attacks on his credibility, mostly stemming from his connection to his family-owned bank. Broadway bank was shuttered and seized by the federal government and was alleged to have ties to the mafia. However, Giannoulias' opponent, Rep.Mark Kirk, faced his own slew of controversies regarding his military service.[59]
On November 2, 2010, Kirk defeated Giannoulias for Illinois' open United States Senate seat by a margin of 2%.[60]
On June 26, 2018, Giannoulias was confirmed to theChicago Public Library Board, marking his first return to public service since leaving the Treasurer's office.[61]
Giannoulias announced he would run forIllinois Secretary of State to succeed retiring incumbentJesse White. During the Democratic primary, his opponent, Chicago City Clerk Anna Valencia, criticized Giannoulias for his past support of a Republican candidate who supported anti-abortion legislation.[62] On June 28, 2022, he won the Democratic primary.[63][64] On November 8, 2022, Giannoulias won the general election, defeating RepublicanDan Brady.[65]
Giannoulias married Jo Terlato in 2014 at St. Andrew Greek Orthodox Church in Chicago.[66][67] Giannoulias isGreek Orthodox.[66][68] They have three children.[65]
| Party political offices | ||
|---|---|---|
| Preceded by | Democratic nominee forTreasurer of Illinois 2006 | Succeeded by |
| Preceded by | Democratic nominee forU.S. Senator fromIllinois (Class 3) 2010 | Succeeded by |
| Preceded by | Democratic nominee forSecretary of State of Illinois 2022 | Most recent |
| Political offices | ||
| Preceded by | Treasurer of Illinois 2007–2011 | Succeeded by |
| Preceded by | Secretary of State of Illinois 2023–present | Incumbent |
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