Edgeville Buzz

CBS2: Broadway Bank may fail

Customers Told FDIC Taking Over Broadway Bank

Giannoulias Family Bank Lost $75 Million Last Year

CHICAGO (CBS) ― Customers at Broadway Bank, the bank owned by the family of Illinois State Treasurer Alexi Giannoulias, have been told the FDIC will take control of the bank by the end of the day.

CBS 2’s Suzanne Le Mignot reports customers are being told Broadway Bank will close after 6 p.m. Friday and will re-open Saturday under a new name. It was not immediately clear if another bank is in line to take control of the bank right away.

Customers say they were told their accounts will be fine. No customers said they were alarmed.

Broadway Bank lost $75 million last year. The Federal Deposit Insurance Corporation typically announces bank closures at the end of the business day on Fridays, and if Broadway fails, customers are insured by the FDIC up to $250,000 per account.

Sources tell CBS 2 the FDIC will shut down several Chicago banks Friday afternoon.

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