April 2, 2010
BY PHIL KADNER
A dispute among politicians seems to make Cook County vulnerable to one of the largest class-action lawsuits in its history. All a lawyer would have to do is point to a letter signed by every member of the Cook County Board of Review that states property tax bills appear to be misleading.
The letter provoked county Assessor James Houlihan on Wednesday to publicly charge that the leader of the county Democratic Party, Joseph Berrios, and Illinois Democratic chairman Michael Madigan are deliberately trying to delay property tax bills from being issued before the Nov. 2 election.
Houlihan contends that property tax increases, particularly for Chicago residents, will be so high they could affect the election. Berrios, in addition to being the county Democratic chairman, decided to run for assessor after Houlihan announced he would not seek re-election. Berrios is also one of three members of the county review board, which makes decisions on property tax appeals.
The letter that he and the two other review board members signed accuses Houlihan of dragging his feet in assessing townships, thereby delaying the tax bills. But the part of the letter that didn't draw much attention has to do with a new way of assessing property in Cook County.
For reasons I still don't fully understand, the county recently changed the assessment process. Homes, once assessed at 16 percent of market value, are now assessed at 10 percent. Commercial property, previously assessed at 36 or 38 percent of market value, is now assessed at 25 percent.
The letter was sent to Commissioner John Daley (D-Chicago), the chairman of the county board's finance committee, and was signed by the board of review members. Here's what it has to say about the new assessment practice: "Unfortunately, there are also significant legal contentions before our agency regarding the constitutionality and legality of the notice provided by the Assessor to taxpayers in conjunction with the 10/25 (percent assessment) Ordinance.
"Nearly all triennial assessment notices indicate that the assessment has been lowered from the previous year or has stayed the same with no increase. "None of the notices of assessment disclose what the prior level of assessment was compared to the new 2009 level of assessment.
"None of the notices of assessment identify that the market value has increased in 2009. All of the assessment notices to homeowners include a press release indicating, 'Due to the first-ever downward market adjustment, residential properties in each suburban township will receive adjustments of their assessed values.'
"These market reductions come as the Assessor's Office is implementing the 10/25 Ordinance. In sum, the legal challenges before us boil down to whether a reasonable person reading their notice of assessment in conjunction with the press release would notice that their market values have increased substantially.
"We are concerned because the terms 'downward market adjustment' and 'market reductions' used by the Assessor certainly would appear to lead a homeowner to the conclusion that their property's market value has decreased ...
"There is a valid argument that most taxpayers will not realize that market values have increased until after there is a shift in tax burden and it is too late for them to exercise their right to appeal." Well, I'm no lawyer, but if that doesn't form a basis for a class-action lawsuit on behalf of all property taxpayers, I don't know what would.
At least two government officials I spoke with Thursday expressed the same concern but refused to go on the record with their comments. And their fear is that any court challenge would delay property tax bills for months - undermining the financial health of school districts, municipalities, library districts and others that depend on that revenue.
Houlihan did not support Berrios in the Democratic primary election and actively sought someone else to run against him. He is rumored to be encouraging county Commissioner Forest Claypool (D-Chicago) to run as an independent against Berrios this fall. The Cook County property tax system is a mess and has been for decades. The average homeowner can't figure out how the county manufactures the numbers for his tax bill.
And that's the way politicians like it. It has been a political tool for years, used in all manner of ways to boost the careers of Cook County officials. Filing appeals of tax bills has generated millions in wealth for certain law firms, including one in which House Speaker Madigan is a partner.
Houlihan and Madigan have been at odds over making permanent a 7 percent cap on equalized assessed value in Cook County. It will be interesting to see if the 10/25 issue even comes up
http://www.southtownstar.com/news/kadner/2136741,040210kadner.article
Friday, April 2, 2010
PEORIA Jobless rate largely unchanged
But west-central Illinois unemployment up significantly from 2009
By Journal Star staff
Posted Apr 01, 2010 @ 09:06 PM
PEORIA — Unemployment rates remained basically steady from January to February throughout west-central Illinois, but still were considerably higher than a year ago, according to figures released Thursday by the Illinois Department of Employment Security.
Many of the counties in the region now have experienced double-digit unemployment for more than a year, those figures showed. It was the 33rd consecutive month unemployment rates increased in the state's metropolitan areas, the Department of Employment Security said.
In the Peoria metropolitan area, unemployment worsened slightly to 13.2 percent, the worst February rate since 1984 - the last time rates stayed in double digits for a sustained period of time - and an increase from 12.9 percent in January. A year earlier, the rate was 9.4 percent in the Peoria region. The rate hit 13.3 percent in February 1984.
In the past year, the Department of Employment Security said, nonfarm payroll jobs went down 10,400 from February 2009. Most of the loss was in manufacturing, which was down 5,700 jobs from a year earlier. Professional-business services lost 1,500 jobs, the leisure-hospitality sector lost 900 jobs, and transportation-warehousing-utilities lost 800 jobs, the state report said.
Peoria County's jobless rate was 13.6 percent in February, up slightly from the January rate of 13.4 percent. It was 9.8 percent in February 2009. The city of Peoria's rate was steady at 13.3 percent in both January and February. A year earlier, it was 9.8 percent.
Tazewell County also saw an increase, from 12.9 percent in January to 13.3 percent in February. It was 9.4 percent in February 2009. A major cause of the increase was that the city of Pekin saw an increase from 15.8 percent in January to 16.6 percent in February. A year earlier, it was 11.3 percent.
Woodford County's rate was 11.3 percent in February, up from 10.8 percent in January. It was 7.4 percent in February 2009. Stark County had the highest rate in the metropolitan area at 14.1 percent, up more than a full percentage point from 12.9 percent in January. It was 10.6 percent a year ago.
Marshall County's rate was 13.1 percent in February, an improvement from the January rate of 13.5 percent. In February 2009, it was 9.2 percent. Of the state's 12 metropolitan areas, only Bloomington-Normal remained below double digits, at 9.5 percent. McLean County was one of only six counties in Illinois below double digits, at 9.5 percent. The lowest rate in Illinois in February was in Brown County, at 6.5 percent. The highest rate was in Boone County, which had a rate of 20.4 percent. The county seat is Belvidere, where a Chrysler Motors plant had massive layoffs over the last two years.
http://www.pjstar.com/news/x905413388/Jobless-rate-largely-unchanged
By Journal Star staff
Posted Apr 01, 2010 @ 09:06 PM
PEORIA — Unemployment rates remained basically steady from January to February throughout west-central Illinois, but still were considerably higher than a year ago, according to figures released Thursday by the Illinois Department of Employment Security.
Many of the counties in the region now have experienced double-digit unemployment for more than a year, those figures showed. It was the 33rd consecutive month unemployment rates increased in the state's metropolitan areas, the Department of Employment Security said.
In the Peoria metropolitan area, unemployment worsened slightly to 13.2 percent, the worst February rate since 1984 - the last time rates stayed in double digits for a sustained period of time - and an increase from 12.9 percent in January. A year earlier, the rate was 9.4 percent in the Peoria region. The rate hit 13.3 percent in February 1984.
In the past year, the Department of Employment Security said, nonfarm payroll jobs went down 10,400 from February 2009. Most of the loss was in manufacturing, which was down 5,700 jobs from a year earlier. Professional-business services lost 1,500 jobs, the leisure-hospitality sector lost 900 jobs, and transportation-warehousing-utilities lost 800 jobs, the state report said.
Peoria County's jobless rate was 13.6 percent in February, up slightly from the January rate of 13.4 percent. It was 9.8 percent in February 2009. The city of Peoria's rate was steady at 13.3 percent in both January and February. A year earlier, it was 9.8 percent.
Tazewell County also saw an increase, from 12.9 percent in January to 13.3 percent in February. It was 9.4 percent in February 2009. A major cause of the increase was that the city of Pekin saw an increase from 15.8 percent in January to 16.6 percent in February. A year earlier, it was 11.3 percent.
Woodford County's rate was 11.3 percent in February, up from 10.8 percent in January. It was 7.4 percent in February 2009. Stark County had the highest rate in the metropolitan area at 14.1 percent, up more than a full percentage point from 12.9 percent in January. It was 10.6 percent a year ago.
Marshall County's rate was 13.1 percent in February, an improvement from the January rate of 13.5 percent. In February 2009, it was 9.2 percent. Of the state's 12 metropolitan areas, only Bloomington-Normal remained below double digits, at 9.5 percent. McLean County was one of only six counties in Illinois below double digits, at 9.5 percent. The lowest rate in Illinois in February was in Brown County, at 6.5 percent. The highest rate was in Boone County, which had a rate of 20.4 percent. The county seat is Belvidere, where a Chrysler Motors plant had massive layoffs over the last two years.
http://www.pjstar.com/news/x905413388/Jobless-rate-largely-unchanged
Decatur area unemployment rate continues unabated climb to 14.6 percent
CHRIS LUSVARDI - H&R Staff Writer
Posted: Friday, April 2, 2010 12:01 am
DECATUR - As the Decatur-area unemployment rate continues to increase, one local business owner questioned just how serious people are about finding jobs.
In more than 34 years working for Dairy Queen, local franchise owner Wendell Bradley said he has never had as many problems hiring staff as he does now. The problems come, even as the Decatur unemployment rate in February rose to 14.6 percent, a 4.5 percentage point increase from last year, according to Illinois Department of Employment Security statistics released Thursday.
The February rate was the highest since 1983, when it was 19 percent. In January, it was 14.4 percent.
"We are struggling to find staff, and I know that just sounds absurd," Bradley said Wednesday during a state jobs task force meeting at the Decatur Civic Center. "We had never experienced that before. People just aren't wanting to work." Bradley said it appears, in certain cases, some people would rather collect unemployment benefits than work.
"They think if they can make as much money on unemployment, so why should I work?" Bradley said. "It can be easier staying on unemployment. They establish a lifestyle."In addition to not finding as many hourly employees as he would like, Bradley said it has been a problem finding enough qualified candidates for management positions.
With people not working, it's not just a problem for small businesses, Bradley said. The entire economy can suffer as people aren't spending money at restaurants and aren't buying items such as gas. Not everyone who is out of work is counted in the unemployment figures, said Greg Rivara, a spokesman for the Department of Employment Security. To be counted, a person must continue to look for work, he said.
"Unemployment was never intended to be permanent," Rivara said. "It was intended to be a bridge. Unemployment was never set up so that a person is forced to take the first available job." Having time to search for a job can help in the long term match a person's skill sets to help with wage standards and increase productivity, Rivara said.
The maximum amount of time a person can continue to collect unemployment benefits is 99 weeks, or nearly two years, Rivara said. The department can check to see if those collecting benefits remain certified to do so, and cheating the system is not advisable, Rivara said. Those found to be cheating the system are ineligible to collect benefits again until they find a job, Rivara said.
"In this economy, that would be a tough risk to take," Rivara said. Until the market bounces back, people can continue to use this time to seek additional training, said Ron Payne, a labor market analyst with the Department of Employment Security. Places such as the Illinois WorkNet Center at 757 W. Pershing Road offer the resources to help, Payne said. "Go over to these offices and check out these services," he said.
Payne said the unemployment rate continues to be high, even as it shows signs of stabilization. The Decatur area lost 2,700 jobs over the year, as manufacturing continued to take the heaviest hit, with 1,300 positions lost, Payne said. "Until we see some progress in the manufacturing numbers on a national basis, we can't look for a whole lot until that happens," Payne said. "We're likely to see ups and downs as we come out of this."
Payne is optimistic that more of an uptick has been occurring since the February data was collected. Upcoming totals could contain gains in outdoor work as construction and lawn care pick up, he said. The financial activities sector increased by 100 positions in February, while other sectors slipped.
Decatur isn't the only Illinois city to feel the effects of the recession. All 12 metro areas in the state have increased in unemployment for 33 consecutive months.Decatur is above both the Illinois and national not seasonally adjusted unemployment rates. The rate was 12 percent in the state and 10.4 percent for the nation. Rockford was the highest at 18.6 percent, followed by Kankakee-Bradley at 16.1 percent and Danville at 15.1 percent. Those areas rely heavily on manufacturing, which Payne said are the areas that have been hit the hardest.
clusvardi@herald-review.com
421-7972
Feb. 2010 Feb. 2009
Christian County 12.6 percent 9.7 percent
Coles County 11.4 percent 8.8 percent
DeWitt County 12.0 percent 8.6 percent
Douglas County 12.0 percent 9.0 percent
Effingham County 11.6 percent 8.4 percent
Fayette County 15.6 percent 11.5 percent
Logan County 12.2 percent 9.3 percent
Macon County 14.6 percent 10.1 percent
Moultrie County 11.3 percent 8.3 percent
Piatt County 11.4 percent 7.7 percent
Shelby County 13.6 percent 10.0 percent
Posted: Friday, April 2, 2010 12:01 am
DECATUR - As the Decatur-area unemployment rate continues to increase, one local business owner questioned just how serious people are about finding jobs.
In more than 34 years working for Dairy Queen, local franchise owner Wendell Bradley said he has never had as many problems hiring staff as he does now. The problems come, even as the Decatur unemployment rate in February rose to 14.6 percent, a 4.5 percentage point increase from last year, according to Illinois Department of Employment Security statistics released Thursday.
The February rate was the highest since 1983, when it was 19 percent. In January, it was 14.4 percent.
"We are struggling to find staff, and I know that just sounds absurd," Bradley said Wednesday during a state jobs task force meeting at the Decatur Civic Center. "We had never experienced that before. People just aren't wanting to work." Bradley said it appears, in certain cases, some people would rather collect unemployment benefits than work.
"They think if they can make as much money on unemployment, so why should I work?" Bradley said. "It can be easier staying on unemployment. They establish a lifestyle."In addition to not finding as many hourly employees as he would like, Bradley said it has been a problem finding enough qualified candidates for management positions.
With people not working, it's not just a problem for small businesses, Bradley said. The entire economy can suffer as people aren't spending money at restaurants and aren't buying items such as gas. Not everyone who is out of work is counted in the unemployment figures, said Greg Rivara, a spokesman for the Department of Employment Security. To be counted, a person must continue to look for work, he said.
"Unemployment was never intended to be permanent," Rivara said. "It was intended to be a bridge. Unemployment was never set up so that a person is forced to take the first available job." Having time to search for a job can help in the long term match a person's skill sets to help with wage standards and increase productivity, Rivara said.
The maximum amount of time a person can continue to collect unemployment benefits is 99 weeks, or nearly two years, Rivara said. The department can check to see if those collecting benefits remain certified to do so, and cheating the system is not advisable, Rivara said. Those found to be cheating the system are ineligible to collect benefits again until they find a job, Rivara said.
"In this economy, that would be a tough risk to take," Rivara said. Until the market bounces back, people can continue to use this time to seek additional training, said Ron Payne, a labor market analyst with the Department of Employment Security. Places such as the Illinois WorkNet Center at 757 W. Pershing Road offer the resources to help, Payne said. "Go over to these offices and check out these services," he said.
Payne said the unemployment rate continues to be high, even as it shows signs of stabilization. The Decatur area lost 2,700 jobs over the year, as manufacturing continued to take the heaviest hit, with 1,300 positions lost, Payne said. "Until we see some progress in the manufacturing numbers on a national basis, we can't look for a whole lot until that happens," Payne said. "We're likely to see ups and downs as we come out of this."
Payne is optimistic that more of an uptick has been occurring since the February data was collected. Upcoming totals could contain gains in outdoor work as construction and lawn care pick up, he said. The financial activities sector increased by 100 positions in February, while other sectors slipped.
Decatur isn't the only Illinois city to feel the effects of the recession. All 12 metro areas in the state have increased in unemployment for 33 consecutive months.Decatur is above both the Illinois and national not seasonally adjusted unemployment rates. The rate was 12 percent in the state and 10.4 percent for the nation. Rockford was the highest at 18.6 percent, followed by Kankakee-Bradley at 16.1 percent and Danville at 15.1 percent. Those areas rely heavily on manufacturing, which Payne said are the areas that have been hit the hardest.
clusvardi@herald-review.com
421-7972
Feb. 2010 Feb. 2009
Christian County 12.6 percent 9.7 percent
Coles County 11.4 percent 8.8 percent
DeWitt County 12.0 percent 8.6 percent
Douglas County 12.0 percent 9.0 percent
Effingham County 11.6 percent 8.4 percent
Fayette County 15.6 percent 11.5 percent
Logan County 12.2 percent 9.3 percent
Macon County 14.6 percent 10.1 percent
Moultrie County 11.3 percent 8.3 percent
Piatt County 11.4 percent 7.7 percent
Shelby County 13.6 percent 10.0 percent
Broadway Bank gives $20 million in loans to felons, when Alexi Giannoulias was senior loan officer
By David Jackson, John Chase and Ray Gibson,
Tribune Reporters
9:58 p.m. CDT, April 1, 2010
The family bank of Democratic Senate candidate Alexi Giannoulias loaned a pair of Chicago crime figures about $20 million during a 14-month period when Giannoulias was a senior loan officer, according to a Tribune examination that provides new details about the bank's relationship with the convicted felons.
Broadway Bank had already lent millions to Michael Giorango when he and a new business partner, Demitri Stavropoulos, came to the bank in mid-2004. Although both men were preparing to serve federal prison terms, the bank embarked on a series of loans to them.
Alexi Giannoulias took a senior position at the bank at about the same time and used it as a launching pad for his political career. But as he campaigns to step up from state treasurer to the U.S. Senate, he has tried to distance himself from the bank's business with the pair and has been reluctant to detail his role.
Broadway is now suing to recover millions of the pair's delinquent loans as the bank struggles to avoid a federal takeover. While Broadway lawyers now criticize Giorango's business practices, the newspaper's examination of court files, land records and public bank documents raises questions about the bank's decisions to make loans to men with criminal histories.
"Banks are not supposed to be doing business with criminals," said banking consultant and former Texas Banking Commissioner Catherine Ghiglieri. "The onus is on the bank to make sure they know who they are dealing with."
Public records do not show which bank officials negotiated or approved any of the loans. Giannoulias declined to be interviewed by the Tribune or to review public records outlining the bank's loans. In a written statement from his campaign, Giannoulias said he did not play a central role in the loans. "In retrospect, I think the added security of a background check would have been good, and I believe that many more banks — including Broadway — now include such checks as part of the loan-making process," he added.
Stavropoulos in 2005 began a two-year sentence following a felony conviction for running a multistate bookmaking ring, while Giorango would serve six months intermittent confinement on a felony for promoting a nationwide prostitution scheme as Broadway financed their land deals from downtown Chicago to Florida, California and South Carolina.
In the most complete examination yet of Broadway's loans to the pair, the Tribune found more than $27 million worth of mortgages to Giorango and his land trusts and companies since 1999. Stavropoulos took part in many of those deals. Broadway officials have cited privacy laws in declining to document the full extent of their business with the men. The new figures exceed reported totals by about $7 million.
Shortly after Broadway began lending money to a Chicago firm the pair formed, Giorango and Stavropoulos used that company to launch their own lending business and make more than 40 short-term loans to borrowers who might not qualify for traditional bank financing, the Tribune found. Such so-called hard-money loans are typically riskier than long-term mortgages offered by banks.
Broadway officials say they were unaware of the pair's lending operation and believe the bank's loans were used solely to fund real estate purchases. They acknowledged they did not inspect or audit the company's business records, though Broadway's loan provisions allowed the bank to do so.
In a two-hour interview this week with the Tribune, Giannoulias' older brother, Demetris Giannoulias, the bank's president and CEO, said he established Broadway's relationship with Giorango in the mid-1990s. Giorango began investing in Chicago properties after completing two federal prison stints for running bookmaking schemes.
Demetris Giannoulias described Giorango as an account holder who at first used relatively small loans for real estate ventures that proved successful. As those ventures grew more ambitious, Broadway advanced more than $6 million to Giorango or his land trusts and companies between 1999 and mid-2004, land records show.
In part because those loans "performed," Demetris Giannoulias said, the bank felt comfortable launching the spate of new financing beginning in mid-2004. Alexi Giannoulias, who started his professional career at the bank in 2002, said in his statement that he was "one of" the senior loan officers at the bank and was not a member of the loan committee that approved the financing for Giorango.
Alexi Giannoulias' role was limited to "getting the appraisals ordered, getting the loan documents prepared, coordinating with attorneys, getting commitment letters prepared. All that kind of stuff," Demetris Giannoulias said. Demetris Giannoulias said the bank learned of Giorango's bookmaking and prostitution promotion convictions from a spring 2004 Tribune report detailing those cases.
"But we're a relationship bank," he said. "So somebody comes in and in all his dealings with the bank seem to be on the level, everything makes sense, nothing seems illicit or untoward. Just because somebody gets a bad article written about them there's no reason to say, ‘Hey, listen, I'm going to kick you out the door because you don't win a popularity contest.' We didn't think he was doing anything illegal."
He said he asked Giorango about the convictions and Giorango said, "It's in the past. I don't do that anymore." At least one of the Broadway mortgages signed by Giorango — a September 2005 loan for $3.4 million used to buy a 32-unit Los Angeles apartment complex — specifies that the borrower "has not been convicted of a felony."
Stavropoulos recently worked as the $5,000-a-week consultant to a Bridgeview strip club, according to his testimony in a September 2009 civil court deposition, and operated a real estate firm that listed properties of reputed Chicago Outfit figure Michael Sarno. Stavropoulos and Giorango both declined to comment.
The firm the pair founded that made hard-money loans, 1201 South Western LLC, is embroiled in lawsuits involving delinquent loans. Broadway ultimately foreclosed on mortgage loans it made to the company and took control of its property at 1201 S. Western Ave. on the city's West Side.
Demetris Giannoulias told the Tribune the bank had no reason to believe that Broadway loans to the 1201 business were used for a hard-money operation. "Generally speaking, we did not give any loans to finance lending operations to any clients," Demetris Giannoulias said. But he added that the bank did not inspect or audit the pair's business records.
"There's no reason to believe there was anything going on but the acquisition of the real estate," he said of the Broadway loans. Broadway violated no laws if it didn't know that Giorango and Stavropoulos were using Broadway funds to lend money, said Robert Serino, a former director of the Comptroller of the Currency's enforcement and compliance division. But Serino added that if the Giannoulias family "put their head in the sand and didn't want to know, they wouldn't necessarily be violating the statute, but they may not be doing their jobs."
The 1201 firm was formed in August 2004 and that month paid $850,000 for a nondescript West Side commercial building. Broadway loaned the 1201 firm $680,000 to complete that sale. That building was then bundled with other properties as collateral to secure millions of dollars in additional Broadway loans to the 1201 firm.It is not possible to determine from public records whether money from Broadway mortgages was poured into the pair's hard-money operation. Take for example what appears to be Broadway's first deal with Giorango and Stavropoulos.
In July 2004, records show, Broadway gave Giorango and Stavropoulos a $1.1 million loan, and they used that money to pay $1.5 million for an office building at 88th Street and Ashland Avenue. But the South Side businessman who owned the property at the time told the Tribune he was not selling the building to Giorango and Stavropoulos but rather was using it as collateral to borrow money from them.
"He (Giorango) loaned me the money, and I paid him off," said Gene Linton, who ran a company called the Economic Development Center that owned the property. Broadway got back its investment when Linton sold the building six months later.
In addition to the 1201 S. Western building foreclosure, Broadway lawyers since last year have filed six separate foreclosure lawsuits as well as bankruptcy court pleadings to recover roughly $15 million from delinquent mortgages to Giorango and Stavropoulos ventures. Five of those cases were resolved when the bank took or sold properties, but two cases over loans totaling $7 million are pending, records and interviews show.
Today Broadway lawyers harshly criticize Giorango's business skills and practices, saying in a recent legal brief that he didn't pay taxes or keep proper business records on a Miami Beach hotel used as collateral for multiple Broadway loans totaling more than $10 million. The bank attorneys alleged in court papers that Giorango "severely mismanaged" that hotel and failed to make repairs or address code violations.
The bank's ongoing problems have become a major campaign issue for Alexi Giannoulias as he runs against Republican opponent U.S. Rep. Mark Kirk. Giannoulias last month said he fears Broadway, which is struggling to raise more than $85 million to prevent a federal takeover, will fail.
dyjackson@tribune.com
jchase@tribune.com
rgibson@tribune.com
http://www.chicagotribune.com/news/elections/ct-met-giannoulias-bank-loans-20100401,0,1521213,full.story
Tribune Reporters
9:58 p.m. CDT, April 1, 2010
The family bank of Democratic Senate candidate Alexi Giannoulias loaned a pair of Chicago crime figures about $20 million during a 14-month period when Giannoulias was a senior loan officer, according to a Tribune examination that provides new details about the bank's relationship with the convicted felons.
Broadway Bank had already lent millions to Michael Giorango when he and a new business partner, Demitri Stavropoulos, came to the bank in mid-2004. Although both men were preparing to serve federal prison terms, the bank embarked on a series of loans to them.
Alexi Giannoulias took a senior position at the bank at about the same time and used it as a launching pad for his political career. But as he campaigns to step up from state treasurer to the U.S. Senate, he has tried to distance himself from the bank's business with the pair and has been reluctant to detail his role.
Broadway is now suing to recover millions of the pair's delinquent loans as the bank struggles to avoid a federal takeover. While Broadway lawyers now criticize Giorango's business practices, the newspaper's examination of court files, land records and public bank documents raises questions about the bank's decisions to make loans to men with criminal histories.
"Banks are not supposed to be doing business with criminals," said banking consultant and former Texas Banking Commissioner Catherine Ghiglieri. "The onus is on the bank to make sure they know who they are dealing with."
Public records do not show which bank officials negotiated or approved any of the loans. Giannoulias declined to be interviewed by the Tribune or to review public records outlining the bank's loans. In a written statement from his campaign, Giannoulias said he did not play a central role in the loans. "In retrospect, I think the added security of a background check would have been good, and I believe that many more banks — including Broadway — now include such checks as part of the loan-making process," he added.
Stavropoulos in 2005 began a two-year sentence following a felony conviction for running a multistate bookmaking ring, while Giorango would serve six months intermittent confinement on a felony for promoting a nationwide prostitution scheme as Broadway financed their land deals from downtown Chicago to Florida, California and South Carolina.
In the most complete examination yet of Broadway's loans to the pair, the Tribune found more than $27 million worth of mortgages to Giorango and his land trusts and companies since 1999. Stavropoulos took part in many of those deals. Broadway officials have cited privacy laws in declining to document the full extent of their business with the men. The new figures exceed reported totals by about $7 million.
Shortly after Broadway began lending money to a Chicago firm the pair formed, Giorango and Stavropoulos used that company to launch their own lending business and make more than 40 short-term loans to borrowers who might not qualify for traditional bank financing, the Tribune found. Such so-called hard-money loans are typically riskier than long-term mortgages offered by banks.
Broadway officials say they were unaware of the pair's lending operation and believe the bank's loans were used solely to fund real estate purchases. They acknowledged they did not inspect or audit the company's business records, though Broadway's loan provisions allowed the bank to do so.
In a two-hour interview this week with the Tribune, Giannoulias' older brother, Demetris Giannoulias, the bank's president and CEO, said he established Broadway's relationship with Giorango in the mid-1990s. Giorango began investing in Chicago properties after completing two federal prison stints for running bookmaking schemes.
Demetris Giannoulias described Giorango as an account holder who at first used relatively small loans for real estate ventures that proved successful. As those ventures grew more ambitious, Broadway advanced more than $6 million to Giorango or his land trusts and companies between 1999 and mid-2004, land records show.
In part because those loans "performed," Demetris Giannoulias said, the bank felt comfortable launching the spate of new financing beginning in mid-2004. Alexi Giannoulias, who started his professional career at the bank in 2002, said in his statement that he was "one of" the senior loan officers at the bank and was not a member of the loan committee that approved the financing for Giorango.
Alexi Giannoulias' role was limited to "getting the appraisals ordered, getting the loan documents prepared, coordinating with attorneys, getting commitment letters prepared. All that kind of stuff," Demetris Giannoulias said. Demetris Giannoulias said the bank learned of Giorango's bookmaking and prostitution promotion convictions from a spring 2004 Tribune report detailing those cases.
"But we're a relationship bank," he said. "So somebody comes in and in all his dealings with the bank seem to be on the level, everything makes sense, nothing seems illicit or untoward. Just because somebody gets a bad article written about them there's no reason to say, ‘Hey, listen, I'm going to kick you out the door because you don't win a popularity contest.' We didn't think he was doing anything illegal."
He said he asked Giorango about the convictions and Giorango said, "It's in the past. I don't do that anymore." At least one of the Broadway mortgages signed by Giorango — a September 2005 loan for $3.4 million used to buy a 32-unit Los Angeles apartment complex — specifies that the borrower "has not been convicted of a felony."
Stavropoulos recently worked as the $5,000-a-week consultant to a Bridgeview strip club, according to his testimony in a September 2009 civil court deposition, and operated a real estate firm that listed properties of reputed Chicago Outfit figure Michael Sarno. Stavropoulos and Giorango both declined to comment.
The firm the pair founded that made hard-money loans, 1201 South Western LLC, is embroiled in lawsuits involving delinquent loans. Broadway ultimately foreclosed on mortgage loans it made to the company and took control of its property at 1201 S. Western Ave. on the city's West Side.
Demetris Giannoulias told the Tribune the bank had no reason to believe that Broadway loans to the 1201 business were used for a hard-money operation. "Generally speaking, we did not give any loans to finance lending operations to any clients," Demetris Giannoulias said. But he added that the bank did not inspect or audit the pair's business records.
"There's no reason to believe there was anything going on but the acquisition of the real estate," he said of the Broadway loans. Broadway violated no laws if it didn't know that Giorango and Stavropoulos were using Broadway funds to lend money, said Robert Serino, a former director of the Comptroller of the Currency's enforcement and compliance division. But Serino added that if the Giannoulias family "put their head in the sand and didn't want to know, they wouldn't necessarily be violating the statute, but they may not be doing their jobs."
The 1201 firm was formed in August 2004 and that month paid $850,000 for a nondescript West Side commercial building. Broadway loaned the 1201 firm $680,000 to complete that sale. That building was then bundled with other properties as collateral to secure millions of dollars in additional Broadway loans to the 1201 firm.It is not possible to determine from public records whether money from Broadway mortgages was poured into the pair's hard-money operation. Take for example what appears to be Broadway's first deal with Giorango and Stavropoulos.
In July 2004, records show, Broadway gave Giorango and Stavropoulos a $1.1 million loan, and they used that money to pay $1.5 million for an office building at 88th Street and Ashland Avenue. But the South Side businessman who owned the property at the time told the Tribune he was not selling the building to Giorango and Stavropoulos but rather was using it as collateral to borrow money from them.
"He (Giorango) loaned me the money, and I paid him off," said Gene Linton, who ran a company called the Economic Development Center that owned the property. Broadway got back its investment when Linton sold the building six months later.
In addition to the 1201 S. Western building foreclosure, Broadway lawyers since last year have filed six separate foreclosure lawsuits as well as bankruptcy court pleadings to recover roughly $15 million from delinquent mortgages to Giorango and Stavropoulos ventures. Five of those cases were resolved when the bank took or sold properties, but two cases over loans totaling $7 million are pending, records and interviews show.
Today Broadway lawyers harshly criticize Giorango's business skills and practices, saying in a recent legal brief that he didn't pay taxes or keep proper business records on a Miami Beach hotel used as collateral for multiple Broadway loans totaling more than $10 million. The bank attorneys alleged in court papers that Giorango "severely mismanaged" that hotel and failed to make repairs or address code violations.
The bank's ongoing problems have become a major campaign issue for Alexi Giannoulias as he runs against Republican opponent U.S. Rep. Mark Kirk. Giannoulias last month said he fears Broadway, which is struggling to raise more than $85 million to prevent a federal takeover, will fail.
dyjackson@tribune.com
jchase@tribune.com
rgibson@tribune.com
http://www.chicagotribune.com/news/elections/ct-met-giannoulias-bank-loans-20100401,0,1521213,full.story
Wednesday, March 31, 2010
GOPUSA ILLINOIS March 31 2010
Fellow Republicans:
News clips and upcoming event information:
WASHINGTON POST
-- DIERSEN HEADLINE: What if instead of living in conservative Republican Wheaton, Diersen lived in liberal Democrat Beverly Hills? What if instead of being the GOPUSA Illinois Editor, Diersen was the GOPUSA California Editor? What if, in his role as the GOPUSA California Editor, Diersen had attended and written reports on the Young Eagles dinner and the Voyeur visit? Of course, Diersen's reports always include the names of the Republican candidates, the Republican elected officials, the Republican party leaders, and other high profile Republicans who attend. Sadly, certain Illinois Republican Party leaders, certain DuPage County Republican Central Committee leaders, and certain Milton Township Republican Central Committee leaders make it clear that they do not want any record kept of who attends their events.
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/30/AR2010033003584.html?hpid=moreheadlines
(FROM THE ARTICLE: Fired RNC staffer led program to recruit young donors - Dan Eggen The Voyeur visit took place after an official Young Eagles dinner at the Beverly Hills Hotel, attended by about 50 donors, according to the RNC and other officials. Hotline, citing unidentified sources, said Meyers organized the official RNC event and the after-party at the club. About a dozen Republicans, including Meyers, attended the Voyeur gathering, GOP officials said.)
-- DIERSEN HEADLINE: Nasty Steele cartoon
http://voices.washingtonpost.com/tomtoles/2010/03/steele_shackles.html
-- Party over for Steele and the RNC? - Doug Feaver
http://voices.washingtonpost.com/dot.comments/2010/03/party_over_for_steele_and_the.html
-- University of Wyoming cancels William Ayers speech - Bob Moen
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/30/AR2010033002390.html
DUPAGE COUNTY REPUBLICAN CENTRAL COMMITTEE
-- DIERSEN HEADLINE: Back in the good old days of openness and transparency, the DuPage County Republican Central Committee (DCRCC) used to allow DuPage County Republican Precinct Committeemen, which includes me, to attend DCRCC Executive Committee meetings as observers.
http://www.docstoc.com/docs/27389871/DuPage-Republican-Party-Calendar-of-Events
HUFFINGTON POST
-- The GOP Is "Shooting the Messenger" - Joan Dowlin (DIERSEN: Since I became the GOPUSA Illinois Editor in 2000, many who claim to be Republican and some who even claim to be conservative have threatened to harm me if I didn't follow their directives on what to include and what to not include in GOPUSA ILLINOIS daily emails. Some have harmed me because I did not succumb to their threats. Most of the threats came from political thugs who presented themselves as spokespersons for Illinois Republican Party (IRP) leaders. Most wanted me to blacklist Jack Roeser and blacklist anyone associated with Jack Roeser. Now that Jack Roeser has been embraced by the IRP, it will be interesting to see how those political thugs treat me. Of course, I reserve the right to a) expose those who threaten me, b) to obtain restraining orders against those who threaten me, and c) to take legal action against those who threaten me.)
http://www.huffingtonpost.com/joan-e-dowlin/the-gop-is-shooting-the-m_b_516056.html
ABC7
-- Kirk isn't saying if he wants health care repealed - Charles Thomas
http://abclocal.go.com/wls/story?section=news/politics&id=7358698
NBC5
-- DISGUSTING: "Scarface School Play" Causes Trouble for Local School The video is a hoax - Andrew Greiner and Lora Lesage
http://www.nbcchicago.com/news/local-beat/Scarface-the-School-Play-Causes-Trouble-for-Local-School-89533267.html
-- Mark Kirk Backs Off "Repeal" Charge Kirk implores Giannoulias to do some straight talking as well - Mary Ann Ahern
http://www.nbcchicago.com/news/politics/Kirk-Talks-Healthcare-Reform-89519812.html
CBS2
-- Beverly Hills: Rove Abandons Book Signing After 'Arrest' Attempt
http://cbs2chicago.com/politics/karl.rove.book.2.1599344.html
-- Obama Takes Care In Sizing Up 'Tea Party' Movement - AP
http://cbs2chicago.com/politics/obama.tea.party.2.1601135.html
CHICAGO TRIBUNE
-- COYOTES AND THEIR PROMOTERS ARE OVERJOYED: Wheaton ends coyote culling program - Clifford Ward
http://www.chicagobreakingnews.com/2010/03/wheaton-ends-coyote-culling-program.html
-- CLARENCE PAGE: "Ironically, exasperated Republican insiders tell me that Steele probably would have been gone by now if the party didn't have such a severe shortage of Republicans-of-color in key positions. Republican leaders find themselves in the awkward position of trying to reach out to nonwhites without calling attention to race. These leaders favor a colorblind society as a policy position and oppose affirmative action "quotas." Yet, they are not comfortable with looking increasingly like a white party, especially when they have to go up against the country's first black president." (DIERSEN: Which group does Page despise the most -- Whites or conservative Blacks?)
http://www.chicagotribune.com/news/columnists/ct-oped-0331-page-20100331,0,7820555.column
CHICAGO SUN-TIMES
-- VERY SAD: Mark Kirk refuses to say he'll repeal health care overhaul - AP
http://www.suntimes.com/news/elections/2131452,kirk-health-care-repeal-033010.article
DAILY HERALD
-- FRONT PAGE TOP OF FOLD IN DUPAGE EDITION: COYOTES AND THEIR PROMOTERS ARE OVERJOYED: Wheaton officials halt coyote trapping program - Robert Sanchez
http://www.dailyherald.com/story/?id=369587
-- VERY SAD: Foster gets support of Provena hospital CEO for health care vote - Jim Fuller
http://www.dailyherald.com/story/?id=369677&src=5
-- Perhaps they'll hear us come November - Rafael Rivadeneira, Elmhurst
http://www.dailyherald.com/story/?id=368946&src=
-- Lisle commission sets Navistar hearing date - Jake Griffin
http://www.dailyherald.com/story/?id=369618
-- Health care takeover unconstitutional - Paul White, Naperville
http://www.dailyherald.com/story/?id=368947&src=
-- Does the Left know why we're angry? - Doug MacGregor, Naperville
http://www.dailyherald.com/story/?id=368949&src=
SUBURBAN CHICAGO NEWS
-- Video gaming debate something to chew on - Denise Crosby
http://www.suburbanchicagonews.com/napervillesun/news/2131940,2_1_AU31_DENISE_S1-100331.article
-- AS THE DEMOCRAT PARTY'S STRANGLEHOLD ON ILLINOIS AND ON AMERICA TIGHTENS: Economy magnifies domestic violence issue Economic hardship magnifies domestic violence problem - Susan Carlman
http://www.suburbanchicagonews.com/napervillesun/news/2131759,6_1_NA31_DOMVIOLENCE_S1-100331.article
SUBURBAN LIFE
-- New legislation would turn water commission operations over to DuPage County - Dave Heitz
http://www.mysuburbanlife.com/elmhurst/newsnow/x1009765692/New-legislation-would-turn-water-commission-operations-over-to-county
PIONEER LOCAL
-- Local leaders hit Springfield to oppose governor's budget plan - Amy Deis
http://www.pioneerlocal.com/clarendonhills/news/2131415,clarendon-hills-managers-040110-s1.article
-- Opposition rises to county control of water commission - Amy Deis
http://www.pioneerlocal.com/clarendonhills/news/2131436,clarendon-hills-managers-040110-s2.article
BLOOMINGTON PANTAGRAPH
-- Illinois AARP seeks safeguards on power of attorney
http://pantagraph.com/news/state-and-regional/illinois/article_e6bd3177-a44b-576d-8fb4-ba332e5b35fa.html
ALTON TELEGRAPH
-- AS THE DEMOCRAT PARTY'S STRANGLEHOLD ON ILLINOIS AND ON AMERICA TIGHTENS: Nearly 1.5 million in Illinois short on food - Bill McMorris
http://www.thetelegraph.com/news/food-38258-state-illinois.html
REPUBLICAN NEWS WATCH
-- NBC Chicago hits Kirk for backtrack but gives him pass on taxes
http://republicannewswatch.com/wp/?p=1475
ILLINOIS REVIEW
-- OUTSTANDING: Judge says contractor can sue IDOT chief over highway work quotas
http://illinoisreview.typepad.com/illinoisreview/2010/03/judge-says-contractor-can-sue-idot-chief-over-highway-work-quotas.html
-- DISGUSTING: Video: Your public school tax dollars hard at work
http://illinoisreview.typepad.com/illinoisreview/2010/03/video-your-public-school-tax-dollars-hard-at-work.html
-- Democrats' Chicago-Style Threats Against Job Creators Continue
http://illinoisreview.typepad.com/illinoisreview/2010/03/democrats-chicagostyle-threats-against-job-creators-continue.html
AMERICANS FOR TRUTH ABOUT HOMOSEXUALITY
-- VERY SAD: 'Gay Liberation Network' Leader Pronounces Catholic Church 'Haters' - Peter LaBarbera
http://americansfortruth.com/news/gay-liberation-network-leader-pronounces-catholic-church-haters.html
NANCY J. THORNER
-- The Flourishing of Statism
http://nancyjthorner.wordpress.com/2010/03/27/the-flourishing-of-statism/
ILLINOIS FAMILY INSTITUTE
-- Obama's Controversial Recess Appointment to the EEOC: Lesbian Chai Feldblum - Laurie Higgins
http://www.illinoisfamily.org/news/contentview.asp?c=34815
CHICAGO NOW
-- Palin Endorses Kinzinger - Blake Dvorak
http://www.chicagonow.com/blogs/voting-booth/2010/03/palin-endorses-kinzinger.html
ARCH PUNDIT
-- Mark Kirk: Man of Principle
http://archpundit.com/blog/2010/03/30/mark-kirk-man-of-principle/
HUFFINGTON POST
-- Sheila Simon: Learning About The Democrats' New Lieutenant Governor Nominee
http://www.huffingtonpost.com/2010/03/30/sheila-simon-learning-abo_n_518778.html
ACCURACY IN MEDIA
-- DISGUSTING: NBC Partners With Gay Magazine (DIERSEN: All the religions of the world discourage homosexual activity.)
http://www.aim.org/don-irvine-blog/nbc-partners-with-gay-magazine/
THE HILL
-- GOP leaders seek to distance themselves from Michael Steele - Molly K. Hooper and Bob Cusack
http://thehill.com/homenews/campaign/89831-gop-leaders-seek-to-distance-themselves-from-michael-steele
-- Nev. GOP chief quits - Sean J. Miller
http://thehill.com/blogs/ballot-box/other-races/89949-nev-gop-chief-quits
HUMAN EVENTS
-- Democrats Awash in Corruption Scandals - Donald Lambro (FROM THE ARTICLE: In Illinois, a state notorious for its political corruption, Gov. Rod Blagojevich was impeached and removed from office last year for trying to sell the Senate seat vacated by Barack Obama to the highest bidder. Blagojevich, who now faces charges that include fraud and solicitation of bribery, goes on trial June 3.)
http://www.humanevents.com/article.php?id=36271
WORLD NET DAILY
-- University of Wyoming to Bill Ayers: Thanks but no thanks! Radical's appearance at university canceled
http://www.wnd.com/index.php?fa=PAGE.view&pageId=134157
NATIONAL POST
-- Sex-club expense leaves Republican chairman red-faced - Victoria Wells
http://network.nationalpost.com/NP/blogs/posted/archive/2010/03/30/sex-club-expense-leaves-republican-chairman-red-faced.aspx
GOPUSA ILLINOIS
-- Clowns to the Left, Jokers on the Right - Debra Saunders
http://www.gopusa.com/commentary/dsaunders/2010/ds_0330.shtml
NATIONAL REVIEW
-- Obamacare Costs Illinois Tool Works $22 Million
http://campaignspot.nationalreview.com/post/?q=ZTY5NDhhMGQxYzhlOTQ0MjAyMzRjZTRjYWU1Mjc1Zjg=
HOUSTON CHRONICLE
-- Republicans say Steele will survive nightclub flap - AP
http://www.chron.com/disp/story.mpl/ap/top/all/6936937.html
SAN FRANCISCO CHRONICLE
-- Karl Rove says GOP must deal with scandal - Carla Marinucci
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/30/MNQS1CNJ2V.DTL&type=politics&tsp=1
MSNBC
-- GOP watch: Strained relationships
http://firstread.msnbc.msn.com/archive/2010/03/31/2253064.aspx
NATIONAL JOURNAL
-- Hotline After Dark -- Steele Yourselves - Rachelle Proulx
http://hotlineoncall.nationaljournal.com/archives/2010/03/hotline_after_d_736.php
CBS NEWS
-- GOP Committee Investigating $2K Trip to Topless Bondage-Themed Club - Stephanie Condon
http://www.cbsnews.com/8301-503544_162-20001355-503544.html?tag=mncol;lst;3
ABC NEWS
-- Is RNC Chairman Michael Steele's Job in Jeopardy? Republican Leader Comes Under Fire For Spending Spree - Claire Shipman
http://abcnews.go.com/GMA/Politics/rnc-chairman-michael-steeles-job-jeopardy/story?id=10247675
CANADA FREE PRESS
-- Do Democrats commit hate crimes against black Republicans - Frances Rice
http://canadafreepress.com/index.php/article/21522
WINDY CITY TIMES
-- What about Brady's running mate?
http://www.windycitymediagroup.com/gay/lesbian/news/ARTICLE.php?AID=26030
-- Bill Brady: A closer look
http://www.windycitymediagroup.com/gay/lesbian/news/ARTICLE.php?AID=26029
CITY OF CHICAGO
-- Mayor Daley Proclaims 2010 The Year Of Mexico In Chicago (DIERSEN: Needless-to-say, individuals like Daley, governmental entities like Chicago, organizations, companies, etc. that encourage people to come into America illegally and/or to stay in America illegally should be prosecuted to the fullest extent of the law.)
http://mayor.cityofchicago.org/mayor/en/press_room/press_releases/2010/march_2010/0310_mexico_in_chicago.html
UPCOMING EVENTS: FOR EVENT DETAILS, VISIT THE EVENTS PAGES AT: www.illinoisreview.com, www.weareillinois.org, and/or www.dupagegop.com
3/31 Event: Grogan to speak at DuPage County Young Republicans Party in Wheaton
4/6 Event: Kelly to speak at TEA Party Express in Rockford
4/8 Event: Millner reception in Des Plaines
4/8 Event: IRP National Committeeman vacancy applications due
4/8 Event: Wayne Township GOP meeting
4/9 Event: Bill Brady to attend Vernon Township GOP candidate night in Wheeling
4/9 Event: NTRO Annual Pizza Party
4/9 Event: Vernon Republican Candidate Night
4/10 Event: Bill Brady, Dan Sugrue, and Joe Walsh to speak at breakfsat meeting in Grayslake
4/12 Event: Dillard fundraiser in Downers Grove
4/12 Event: Downers Grove Township GOP meeting
4/13 Event: Annual Township meetings
4/14 Event: Milton Township GOP meeting
4/15 Event: Andrzejewski to speak at TEA rally in Palatine
4/15 Event: IPR SCC meeting to fill the National Committeeman vacancy
4/16 Event: Day of Silence Walkout
4/16 Event: Senger fundraiser at White Eagle in Naperville
4/16 Event: Pawlenty to keynote Lake County Republican Federation gala
4/17 Event: TAPROOT breakfast meeting in Lombard
4/17 Event: Bachmann to speak at Family-Pac Federal breakfast in Oak Brook
4/17 Event: Kelly to speak at Clark County TEA Party
4/19 Event: Lisle Township GOP meeting
4/20 Event: York Township GOP meeting
4/21 Event: Winfield Township GOP meeting
4/22 Event: IRP fundraising dinner
4/24 Event: Naperville Township GOP meeting
4/26 Event: Radogno to speak at City Club of Chicago luncheon
4/27 Event: Bloomingdale Township GOP meeting
4/28 Event: DuPage Young Republican meeting
4/28 Event: David Kohn on Theodore Roosevelt at the Union League Club
5/2 Event: Kachiroubas fundraiser in Lisle
5/5 Event: Cinco de Mayo RNHA fundraiser in Aurora
5/12 Event: Palin to speak at the Rosemont Theater
5/21 Event: Naperville Area Republican Women's Organization fundraiser in Lisle
7/4 Event: Wheaton & Glen Ellyn Independence Day parades
7/17 Event: Operation Support Our Troops concert in Wheaton
9/9 Event: RNHA of Illinois Meet the Candidates event
9/18 Event: Glenn Beck to speak at URF event in Chicago area
10/8 Event: Milton Township GOP Oktoberfest at the Carlisle
11/2 Event: General election
Each and every morning, I send a GOPUSA ILLINOIS email to each and every GOPUSA ILLINOIS subscriber. If the email does not appear in your inbox, to view a copy of it, please visit: http://www.gopillinois.com. Also each and every morning, I post a link to that copy on the Illinoize page at http://www.capitalfax.blogspot.com. Since January 1, 2005, GOPUSA ILLINOIS has brought to your attention 62,002 internet postings and information on many upcoming events free of charge and without any advertising. GOPUSA ILLINOIS asks that its subscribers use the information in the emails to help elect and reelect Republicans who can and will defend and advance the Illinois Republican Party platform.
Thanks,
Dave Diersen
Phone: 630-653-0462
Fax: 630-653-9665
News clips and upcoming event information:
WASHINGTON POST
-- DIERSEN HEADLINE: What if instead of living in conservative Republican Wheaton, Diersen lived in liberal Democrat Beverly Hills? What if instead of being the GOPUSA Illinois Editor, Diersen was the GOPUSA California Editor? What if, in his role as the GOPUSA California Editor, Diersen had attended and written reports on the Young Eagles dinner and the Voyeur visit? Of course, Diersen's reports always include the names of the Republican candidates, the Republican elected officials, the Republican party leaders, and other high profile Republicans who attend. Sadly, certain Illinois Republican Party leaders, certain DuPage County Republican Central Committee leaders, and certain Milton Township Republican Central Committee leaders make it clear that they do not want any record kept of who attends their events.
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/30/AR2010033003584.html?hpid=moreheadlines
(FROM THE ARTICLE: Fired RNC staffer led program to recruit young donors - Dan Eggen The Voyeur visit took place after an official Young Eagles dinner at the Beverly Hills Hotel, attended by about 50 donors, according to the RNC and other officials. Hotline, citing unidentified sources, said Meyers organized the official RNC event and the after-party at the club. About a dozen Republicans, including Meyers, attended the Voyeur gathering, GOP officials said.)
-- DIERSEN HEADLINE: Nasty Steele cartoon
http://voices.washingtonpost.com/tomtoles/2010/03/steele_shackles.html
-- Party over for Steele and the RNC? - Doug Feaver
http://voices.washingtonpost.com/dot.comments/2010/03/party_over_for_steele_and_the.html
-- University of Wyoming cancels William Ayers speech - Bob Moen
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/30/AR2010033002390.html
DUPAGE COUNTY REPUBLICAN CENTRAL COMMITTEE
-- DIERSEN HEADLINE: Back in the good old days of openness and transparency, the DuPage County Republican Central Committee (DCRCC) used to allow DuPage County Republican Precinct Committeemen, which includes me, to attend DCRCC Executive Committee meetings as observers.
http://www.docstoc.com/docs/27389871/DuPage-Republican-Party-Calendar-of-Events
HUFFINGTON POST
-- The GOP Is "Shooting the Messenger" - Joan Dowlin (DIERSEN: Since I became the GOPUSA Illinois Editor in 2000, many who claim to be Republican and some who even claim to be conservative have threatened to harm me if I didn't follow their directives on what to include and what to not include in GOPUSA ILLINOIS daily emails. Some have harmed me because I did not succumb to their threats. Most of the threats came from political thugs who presented themselves as spokespersons for Illinois Republican Party (IRP) leaders. Most wanted me to blacklist Jack Roeser and blacklist anyone associated with Jack Roeser. Now that Jack Roeser has been embraced by the IRP, it will be interesting to see how those political thugs treat me. Of course, I reserve the right to a) expose those who threaten me, b) to obtain restraining orders against those who threaten me, and c) to take legal action against those who threaten me.)
http://www.huffingtonpost.com/joan-e-dowlin/the-gop-is-shooting-the-m_b_516056.html
ABC7
-- Kirk isn't saying if he wants health care repealed - Charles Thomas
http://abclocal.go.com/wls/story?section=news/politics&id=7358698
NBC5
-- DISGUSTING: "Scarface School Play" Causes Trouble for Local School The video is a hoax - Andrew Greiner and Lora Lesage
http://www.nbcchicago.com/news/local-beat/Scarface-the-School-Play-Causes-Trouble-for-Local-School-89533267.html
-- Mark Kirk Backs Off "Repeal" Charge Kirk implores Giannoulias to do some straight talking as well - Mary Ann Ahern
http://www.nbcchicago.com/news/politics/Kirk-Talks-Healthcare-Reform-89519812.html
CBS2
-- Beverly Hills: Rove Abandons Book Signing After 'Arrest' Attempt
http://cbs2chicago.com/politics/karl.rove.book.2.1599344.html
-- Obama Takes Care In Sizing Up 'Tea Party' Movement - AP
http://cbs2chicago.com/politics/obama.tea.party.2.1601135.html
CHICAGO TRIBUNE
-- COYOTES AND THEIR PROMOTERS ARE OVERJOYED: Wheaton ends coyote culling program - Clifford Ward
http://www.chicagobreakingnews.com/2010/03/wheaton-ends-coyote-culling-program.html
-- CLARENCE PAGE: "Ironically, exasperated Republican insiders tell me that Steele probably would have been gone by now if the party didn't have such a severe shortage of Republicans-of-color in key positions. Republican leaders find themselves in the awkward position of trying to reach out to nonwhites without calling attention to race. These leaders favor a colorblind society as a policy position and oppose affirmative action "quotas." Yet, they are not comfortable with looking increasingly like a white party, especially when they have to go up against the country's first black president." (DIERSEN: Which group does Page despise the most -- Whites or conservative Blacks?)
http://www.chicagotribune.com/news/columnists/ct-oped-0331-page-20100331,0,7820555.column
CHICAGO SUN-TIMES
-- VERY SAD: Mark Kirk refuses to say he'll repeal health care overhaul - AP
http://www.suntimes.com/news/elections/2131452,kirk-health-care-repeal-033010.article
DAILY HERALD
-- FRONT PAGE TOP OF FOLD IN DUPAGE EDITION: COYOTES AND THEIR PROMOTERS ARE OVERJOYED: Wheaton officials halt coyote trapping program - Robert Sanchez
http://www.dailyherald.com/story/?id=369587
-- VERY SAD: Foster gets support of Provena hospital CEO for health care vote - Jim Fuller
http://www.dailyherald.com/story/?id=369677&src=5
-- Perhaps they'll hear us come November - Rafael Rivadeneira, Elmhurst
http://www.dailyherald.com/story/?id=368946&src=
-- Lisle commission sets Navistar hearing date - Jake Griffin
http://www.dailyherald.com/story/?id=369618
-- Health care takeover unconstitutional - Paul White, Naperville
http://www.dailyherald.com/story/?id=368947&src=
-- Does the Left know why we're angry? - Doug MacGregor, Naperville
http://www.dailyherald.com/story/?id=368949&src=
SUBURBAN CHICAGO NEWS
-- Video gaming debate something to chew on - Denise Crosby
http://www.suburbanchicagonews.com/napervillesun/news/2131940,2_1_AU31_DENISE_S1-100331.article
-- AS THE DEMOCRAT PARTY'S STRANGLEHOLD ON ILLINOIS AND ON AMERICA TIGHTENS: Economy magnifies domestic violence issue Economic hardship magnifies domestic violence problem - Susan Carlman
http://www.suburbanchicagonews.com/napervillesun/news/2131759,6_1_NA31_DOMVIOLENCE_S1-100331.article
SUBURBAN LIFE
-- New legislation would turn water commission operations over to DuPage County - Dave Heitz
http://www.mysuburbanlife.com/elmhurst/newsnow/x1009765692/New-legislation-would-turn-water-commission-operations-over-to-county
PIONEER LOCAL
-- Local leaders hit Springfield to oppose governor's budget plan - Amy Deis
http://www.pioneerlocal.com/clarendonhills/news/2131415,clarendon-hills-managers-040110-s1.article
-- Opposition rises to county control of water commission - Amy Deis
http://www.pioneerlocal.com/clarendonhills/news/2131436,clarendon-hills-managers-040110-s2.article
BLOOMINGTON PANTAGRAPH
-- Illinois AARP seeks safeguards on power of attorney
http://pantagraph.com/news/state-and-regional/illinois/article_e6bd3177-a44b-576d-8fb4-ba332e5b35fa.html
ALTON TELEGRAPH
-- AS THE DEMOCRAT PARTY'S STRANGLEHOLD ON ILLINOIS AND ON AMERICA TIGHTENS: Nearly 1.5 million in Illinois short on food - Bill McMorris
http://www.thetelegraph.com/news/food-38258-state-illinois.html
REPUBLICAN NEWS WATCH
-- NBC Chicago hits Kirk for backtrack but gives him pass on taxes
http://republicannewswatch.com/wp/?p=1475
ILLINOIS REVIEW
-- OUTSTANDING: Judge says contractor can sue IDOT chief over highway work quotas
http://illinoisreview.typepad.com/illinoisreview/2010/03/judge-says-contractor-can-sue-idot-chief-over-highway-work-quotas.html
-- DISGUSTING: Video: Your public school tax dollars hard at work
http://illinoisreview.typepad.com/illinoisreview/2010/03/video-your-public-school-tax-dollars-hard-at-work.html
-- Democrats' Chicago-Style Threats Against Job Creators Continue
http://illinoisreview.typepad.com/illinoisreview/2010/03/democrats-chicagostyle-threats-against-job-creators-continue.html
AMERICANS FOR TRUTH ABOUT HOMOSEXUALITY
-- VERY SAD: 'Gay Liberation Network' Leader Pronounces Catholic Church 'Haters' - Peter LaBarbera
http://americansfortruth.com/news/gay-liberation-network-leader-pronounces-catholic-church-haters.html
NANCY J. THORNER
-- The Flourishing of Statism
http://nancyjthorner.wordpress.com/2010/03/27/the-flourishing-of-statism/
ILLINOIS FAMILY INSTITUTE
-- Obama's Controversial Recess Appointment to the EEOC: Lesbian Chai Feldblum - Laurie Higgins
http://www.illinoisfamily.org/news/contentview.asp?c=34815
CHICAGO NOW
-- Palin Endorses Kinzinger - Blake Dvorak
http://www.chicagonow.com/blogs/voting-booth/2010/03/palin-endorses-kinzinger.html
ARCH PUNDIT
-- Mark Kirk: Man of Principle
http://archpundit.com/blog/2010/03/30/mark-kirk-man-of-principle/
HUFFINGTON POST
-- Sheila Simon: Learning About The Democrats' New Lieutenant Governor Nominee
http://www.huffingtonpost.com/2010/03/30/sheila-simon-learning-abo_n_518778.html
ACCURACY IN MEDIA
-- DISGUSTING: NBC Partners With Gay Magazine (DIERSEN: All the religions of the world discourage homosexual activity.)
http://www.aim.org/don-irvine-blog/nbc-partners-with-gay-magazine/
THE HILL
-- GOP leaders seek to distance themselves from Michael Steele - Molly K. Hooper and Bob Cusack
http://thehill.com/homenews/campaign/89831-gop-leaders-seek-to-distance-themselves-from-michael-steele
-- Nev. GOP chief quits - Sean J. Miller
http://thehill.com/blogs/ballot-box/other-races/89949-nev-gop-chief-quits
HUMAN EVENTS
-- Democrats Awash in Corruption Scandals - Donald Lambro (FROM THE ARTICLE: In Illinois, a state notorious for its political corruption, Gov. Rod Blagojevich was impeached and removed from office last year for trying to sell the Senate seat vacated by Barack Obama to the highest bidder. Blagojevich, who now faces charges that include fraud and solicitation of bribery, goes on trial June 3.)
http://www.humanevents.com/article.php?id=36271
WORLD NET DAILY
-- University of Wyoming to Bill Ayers: Thanks but no thanks! Radical's appearance at university canceled
http://www.wnd.com/index.php?fa=PAGE.view&pageId=134157
NATIONAL POST
-- Sex-club expense leaves Republican chairman red-faced - Victoria Wells
http://network.nationalpost.com/NP/blogs/posted/archive/2010/03/30/sex-club-expense-leaves-republican-chairman-red-faced.aspx
GOPUSA ILLINOIS
-- Clowns to the Left, Jokers on the Right - Debra Saunders
http://www.gopusa.com/commentary/dsaunders/2010/ds_0330.shtml
NATIONAL REVIEW
-- Obamacare Costs Illinois Tool Works $22 Million
http://campaignspot.nationalreview.com/post/?q=ZTY5NDhhMGQxYzhlOTQ0MjAyMzRjZTRjYWU1Mjc1Zjg=
HOUSTON CHRONICLE
-- Republicans say Steele will survive nightclub flap - AP
http://www.chron.com/disp/story.mpl/ap/top/all/6936937.html
SAN FRANCISCO CHRONICLE
-- Karl Rove says GOP must deal with scandal - Carla Marinucci
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/30/MNQS1CNJ2V.DTL&type=politics&tsp=1
MSNBC
-- GOP watch: Strained relationships
http://firstread.msnbc.msn.com/archive/2010/03/31/2253064.aspx
NATIONAL JOURNAL
-- Hotline After Dark -- Steele Yourselves - Rachelle Proulx
http://hotlineoncall.nationaljournal.com/archives/2010/03/hotline_after_d_736.php
CBS NEWS
-- GOP Committee Investigating $2K Trip to Topless Bondage-Themed Club - Stephanie Condon
http://www.cbsnews.com/8301-503544_162-20001355-503544.html?tag=mncol;lst;3
ABC NEWS
-- Is RNC Chairman Michael Steele's Job in Jeopardy? Republican Leader Comes Under Fire For Spending Spree - Claire Shipman
http://abcnews.go.com/GMA/Politics/rnc-chairman-michael-steeles-job-jeopardy/story?id=10247675
CANADA FREE PRESS
-- Do Democrats commit hate crimes against black Republicans - Frances Rice
http://canadafreepress.com/index.php/article/21522
WINDY CITY TIMES
-- What about Brady's running mate?
http://www.windycitymediagroup.com/gay/lesbian/news/ARTICLE.php?AID=26030
-- Bill Brady: A closer look
http://www.windycitymediagroup.com/gay/lesbian/news/ARTICLE.php?AID=26029
CITY OF CHICAGO
-- Mayor Daley Proclaims 2010 The Year Of Mexico In Chicago (DIERSEN: Needless-to-say, individuals like Daley, governmental entities like Chicago, organizations, companies, etc. that encourage people to come into America illegally and/or to stay in America illegally should be prosecuted to the fullest extent of the law.)
http://mayor.cityofchicago.org/mayor/en/press_room/press_releases/2010/march_2010/0310_mexico_in_chicago.html
UPCOMING EVENTS: FOR EVENT DETAILS, VISIT THE EVENTS PAGES AT: www.illinoisreview.com, www.weareillinois.org, and/or www.dupagegop.com
3/31 Event: Grogan to speak at DuPage County Young Republicans Party in Wheaton
4/6 Event: Kelly to speak at TEA Party Express in Rockford
4/8 Event: Millner reception in Des Plaines
4/8 Event: IRP National Committeeman vacancy applications due
4/8 Event: Wayne Township GOP meeting
4/9 Event: Bill Brady to attend Vernon Township GOP candidate night in Wheeling
4/9 Event: NTRO Annual Pizza Party
4/9 Event: Vernon Republican Candidate Night
4/10 Event: Bill Brady, Dan Sugrue, and Joe Walsh to speak at breakfsat meeting in Grayslake
4/12 Event: Dillard fundraiser in Downers Grove
4/12 Event: Downers Grove Township GOP meeting
4/13 Event: Annual Township meetings
4/14 Event: Milton Township GOP meeting
4/15 Event: Andrzejewski to speak at TEA rally in Palatine
4/15 Event: IPR SCC meeting to fill the National Committeeman vacancy
4/16 Event: Day of Silence Walkout
4/16 Event: Senger fundraiser at White Eagle in Naperville
4/16 Event: Pawlenty to keynote Lake County Republican Federation gala
4/17 Event: TAPROOT breakfast meeting in Lombard
4/17 Event: Bachmann to speak at Family-Pac Federal breakfast in Oak Brook
4/17 Event: Kelly to speak at Clark County TEA Party
4/19 Event: Lisle Township GOP meeting
4/20 Event: York Township GOP meeting
4/21 Event: Winfield Township GOP meeting
4/22 Event: IRP fundraising dinner
4/24 Event: Naperville Township GOP meeting
4/26 Event: Radogno to speak at City Club of Chicago luncheon
4/27 Event: Bloomingdale Township GOP meeting
4/28 Event: DuPage Young Republican meeting
4/28 Event: David Kohn on Theodore Roosevelt at the Union League Club
5/2 Event: Kachiroubas fundraiser in Lisle
5/5 Event: Cinco de Mayo RNHA fundraiser in Aurora
5/12 Event: Palin to speak at the Rosemont Theater
5/21 Event: Naperville Area Republican Women's Organization fundraiser in Lisle
7/4 Event: Wheaton & Glen Ellyn Independence Day parades
7/17 Event: Operation Support Our Troops concert in Wheaton
9/9 Event: RNHA of Illinois Meet the Candidates event
9/18 Event: Glenn Beck to speak at URF event in Chicago area
10/8 Event: Milton Township GOP Oktoberfest at the Carlisle
11/2 Event: General election
Each and every morning, I send a GOPUSA ILLINOIS email to each and every GOPUSA ILLINOIS subscriber. If the email does not appear in your inbox, to view a copy of it, please visit: http://www.gopillinois.com. Also each and every morning, I post a link to that copy on the Illinoize page at http://www.capitalfax.blogspot.com. Since January 1, 2005, GOPUSA ILLINOIS has brought to your attention 62,002 internet postings and information on many upcoming events free of charge and without any advertising. GOPUSA ILLINOIS asks that its subscribers use the information in the emails to help elect and reelect Republicans who can and will defend and advance the Illinois Republican Party platform.
Thanks,
Dave Diersen
Phone: 630-653-0462
Fax: 630-653-9665
Saturday, March 27, 2010
Supply fears start to hit Treasuries
By Michael Mackenzie in New York and David Oakley in London
Published: March 26 2010 19:18
Last updated: March 26 2010 19:18
The bond vigilantes are finally flexing their muscles. A long period of stability for the US government bond market showed signs of cracking this week as a lack of investor appetite for new debt sent the benchmark 10-year yield to its highest level since last June.
For more than a year, analysts have been warning that record sized debt sales by the US Treasury were at odds with a 10-year yield sitting comfortably below 4 per cent. This week, the yield on 10-year notes jumped from 3.65 per cent to a peak of 3.92 per cent on Thursday. On Friday it was 3.87 per cent.
Falling inflation, rising unemployment, the housing market slump, the Federal Reserve’s policies of a near zero overnight borrowing rate and its purchase of up to $1,700bn in bonds have all helped keep Treasury yields near historic lows.
But this week the mood shifted as yields for $118bn of new US debt were much higher than forecast, sparking overall selling of Treasuries. Sentiment also deteriorated in the UK bond market after the government’s budget ahead of a general election expected in May failed to resolve doubts over future spending and debt reduction.
The term “bond vigilantes” was coined in the 1980s when bond investors pushed up long-term yields to force central banks into taking action to curb inflation. This time, bond investors are less worried about inflation: they are fretting about huge fiscal deficits and the looming bond supply needed to finance them.
“Everyone thought we would see rising rates due to higher inflation, but it appears the bond vigilantes are demanding a higher real rate due to concerns about Treasury issuance,” says George Goncalves, head of fixed income strategy at Nomura Securities.
Falling inflation, rising unemployment, the housing market slump, the Federal Reserve’s policies of a near zero overnight borrowing rate and its purchase of up to $1,700bn in bonds have all helped keep Treasury yields near historic lows.
Worries about the debt loads of developed economies have come into focus this year amid the crisis threatening Greece and other members of the eurozone periphery.The fact that German Bunds have outperformed both Treasuries and gilts in recent months highlights this increasing worry over public debt. Germany’s budget deficit is much lower than the US and UK and inflation there is also expected to remain low.
“The spotlight on Greece only helped to reveal that the US’s kitchen – with Federal and state budget balances – was itself full of cockroaches,” says William O’Donnell, strategist at RBS Securities.
It hasn’t helped that the US announced a big overhaul of its healthcare system this month, adding to worries about the scale of US spending. Moreover, the Fed completes its bond buying programme next week, leaving the market to absorb the supply of new debt on its own. Next week’s March employment report, which economists say could see 150,000 jobs created, also looms as a test for bond market sentiment.
“The environment for debt auctions has turned negative,” says Rick Klingman, managing director at BNP Paribas. “Long-term rates are rising and it is no coincidence that this has occurred after the passage of healthcare reform and the end of Fed buy-backs.”Also rattling US investors this week was a report by the Congressional Budget Office that falling payroll taxes due to high unemployment, means that the social security programme will pay out more in benefits than it receives for this fiscal year. “A sustained rise in yields is upon us and bond funds will start to incur losses,” says Jim Caron, global head of interest rate strategy at Morgan Stanley. He expects 10-year yields to reach 4.50 per cent in the second quarter, as investors pull their money from bond funds. March looms as the first month for negative returns for investors in Treasuries this year.
For now, other key markets such as equities and the dollar have not been affected by the rise in yields, but that may change if the 10-year rises decisively above 4 per cent and big auctions next month are also poorly received. “This appears as a credit shot across the Treasury market bow and concerns over the US fiscal spending could well move to the dollar and equities,” says Mr Goncalves.A sign of the strains across US fixed income markets was this week’s historic rupture between the 10-year Treasury yield and its close derivative, the interest rate swap.
For the first time since swaps emerged in the mid-1980s, the 10-year swap rate traded below that of the “risk free” 10-year Treasury yield. Analysts say this reflects how government debt issuance has altered the dynamics between “risk-free” yields and swaps, which reflect borrowing costs for non-sovereign borrowers.
In the UK, swap rates have been below those of 10-year gilt yields since January. The yield on 10-year gilts was at 4.03 per cent on Friday, up from a low of 3.91 per cent earlier this week. The peak yield so far this year was 4.27 per cent in February. In Europe, however, swap rates are 20 basis points higher than 10-year yields. “If we get clarity on what the UK will do on deficit reduction once the election is behind us, then the market and gilt yields could stabilise,” says Mike Amey, UK portfolio manager for Pimco.
Since the UK budget on Wednesday, the negative spread, or inversion, has widened with swap rates trading nearly 20 basis points below gilts for 10-year maturities compared with a negative spread of 10bps just before the government statement on public finances. In other words, huge issuance is already creating unexpected distortions and stresses in the market. It is far from clear that we have seen the last of them, given the amounts that still need to be raised.
.
Published: March 26 2010 19:18
Last updated: March 26 2010 19:18
The bond vigilantes are finally flexing their muscles. A long period of stability for the US government bond market showed signs of cracking this week as a lack of investor appetite for new debt sent the benchmark 10-year yield to its highest level since last June.
For more than a year, analysts have been warning that record sized debt sales by the US Treasury were at odds with a 10-year yield sitting comfortably below 4 per cent. This week, the yield on 10-year notes jumped from 3.65 per cent to a peak of 3.92 per cent on Thursday. On Friday it was 3.87 per cent.
Falling inflation, rising unemployment, the housing market slump, the Federal Reserve’s policies of a near zero overnight borrowing rate and its purchase of up to $1,700bn in bonds have all helped keep Treasury yields near historic lows.
But this week the mood shifted as yields for $118bn of new US debt were much higher than forecast, sparking overall selling of Treasuries. Sentiment also deteriorated in the UK bond market after the government’s budget ahead of a general election expected in May failed to resolve doubts over future spending and debt reduction.
The term “bond vigilantes” was coined in the 1980s when bond investors pushed up long-term yields to force central banks into taking action to curb inflation. This time, bond investors are less worried about inflation: they are fretting about huge fiscal deficits and the looming bond supply needed to finance them.
“Everyone thought we would see rising rates due to higher inflation, but it appears the bond vigilantes are demanding a higher real rate due to concerns about Treasury issuance,” says George Goncalves, head of fixed income strategy at Nomura Securities.
Falling inflation, rising unemployment, the housing market slump, the Federal Reserve’s policies of a near zero overnight borrowing rate and its purchase of up to $1,700bn in bonds have all helped keep Treasury yields near historic lows.
Worries about the debt loads of developed economies have come into focus this year amid the crisis threatening Greece and other members of the eurozone periphery.The fact that German Bunds have outperformed both Treasuries and gilts in recent months highlights this increasing worry over public debt. Germany’s budget deficit is much lower than the US and UK and inflation there is also expected to remain low.
“The spotlight on Greece only helped to reveal that the US’s kitchen – with Federal and state budget balances – was itself full of cockroaches,” says William O’Donnell, strategist at RBS Securities.
It hasn’t helped that the US announced a big overhaul of its healthcare system this month, adding to worries about the scale of US spending. Moreover, the Fed completes its bond buying programme next week, leaving the market to absorb the supply of new debt on its own. Next week’s March employment report, which economists say could see 150,000 jobs created, also looms as a test for bond market sentiment.
“The environment for debt auctions has turned negative,” says Rick Klingman, managing director at BNP Paribas. “Long-term rates are rising and it is no coincidence that this has occurred after the passage of healthcare reform and the end of Fed buy-backs.”Also rattling US investors this week was a report by the Congressional Budget Office that falling payroll taxes due to high unemployment, means that the social security programme will pay out more in benefits than it receives for this fiscal year. “A sustained rise in yields is upon us and bond funds will start to incur losses,” says Jim Caron, global head of interest rate strategy at Morgan Stanley. He expects 10-year yields to reach 4.50 per cent in the second quarter, as investors pull their money from bond funds. March looms as the first month for negative returns for investors in Treasuries this year.
For now, other key markets such as equities and the dollar have not been affected by the rise in yields, but that may change if the 10-year rises decisively above 4 per cent and big auctions next month are also poorly received. “This appears as a credit shot across the Treasury market bow and concerns over the US fiscal spending could well move to the dollar and equities,” says Mr Goncalves.A sign of the strains across US fixed income markets was this week’s historic rupture between the 10-year Treasury yield and its close derivative, the interest rate swap.
For the first time since swaps emerged in the mid-1980s, the 10-year swap rate traded below that of the “risk free” 10-year Treasury yield. Analysts say this reflects how government debt issuance has altered the dynamics between “risk-free” yields and swaps, which reflect borrowing costs for non-sovereign borrowers.
In the UK, swap rates have been below those of 10-year gilt yields since January. The yield on 10-year gilts was at 4.03 per cent on Friday, up from a low of 3.91 per cent earlier this week. The peak yield so far this year was 4.27 per cent in February. In Europe, however, swap rates are 20 basis points higher than 10-year yields. “If we get clarity on what the UK will do on deficit reduction once the election is behind us, then the market and gilt yields could stabilise,” says Mike Amey, UK portfolio manager for Pimco.
Since the UK budget on Wednesday, the negative spread, or inversion, has widened with swap rates trading nearly 20 basis points below gilts for 10-year maturities compared with a negative spread of 10bps just before the government statement on public finances. In other words, huge issuance is already creating unexpected distortions and stresses in the market. It is far from clear that we have seen the last of them, given the amounts that still need to be raised.
.
Brady campaign update
On March 5th the Brady for Governor campaign kicked off its official campaign. Even though this was a time for celebration, Bill got right to work with an intense schedule. On Monday, March 8th, Bill met with supporters in a statewide fly around. His day was packed with stops in Chicago, Rockford, Quad Cities, Quincy, Cahokia, Marion, Champaign, Peoria, and Bloomington. Brady held a celebration party for his supporters, staff, and family at the Double Tree Convention Center in Bloomington following the day's events with hundreds of attendees. On the 15th, we launched the Chicagoland campaign with a unity rally in DuPage County that featured all the former GOP candidates for governor and most of the 2010 statewide Republican slate for statewide office.
In the last couple weeks, Bill has been busy attending statewide events, reaching out to voters, and tending to his duties as a State Senator. Due to the national interest in this race, Bill has been in contact with several national Republican organizations that are very interested in assisting our race. His hard work and dedication are paying off, as indicated by three recent polls, each of which show the Brady campaign solidly leading in each survey. Comexpress just released numbers Friday that indicated that Brady was beating Governor Quinn 45 to 36 percent. Not only is Brady winning, but he is also leading or in a virtual tie in every part of the state except for the City of Chicago.
A We Ask America poll from earlier in the month put Brady ahead of Quinn 44.6 percent versus 31.6 percent. And a Rasmussen Poll confirmed both of these findings with its poll illustrating that Brady is leading Quinn 47 to 37 percent. With the continued efforts of Bill and his supporters, these numbers can remain steady and we can take back the state of Illinois. We believe that Governor Quinn's announcement Friday he wants Sheila Simon as his running mate, and the controversy it has generated in the selection of a Democrat candidate for lieutenant governor, adds even more momentum to the Brady/Plummer campaign.
Thank you for your continued support to take Illinois back..
In the last couple weeks, Bill has been busy attending statewide events, reaching out to voters, and tending to his duties as a State Senator. Due to the national interest in this race, Bill has been in contact with several national Republican organizations that are very interested in assisting our race. His hard work and dedication are paying off, as indicated by three recent polls, each of which show the Brady campaign solidly leading in each survey. Comexpress just released numbers Friday that indicated that Brady was beating Governor Quinn 45 to 36 percent. Not only is Brady winning, but he is also leading or in a virtual tie in every part of the state except for the City of Chicago.
A We Ask America poll from earlier in the month put Brady ahead of Quinn 44.6 percent versus 31.6 percent. And a Rasmussen Poll confirmed both of these findings with its poll illustrating that Brady is leading Quinn 47 to 37 percent. With the continued efforts of Bill and his supporters, these numbers can remain steady and we can take back the state of Illinois. We believe that Governor Quinn's announcement Friday he wants Sheila Simon as his running mate, and the controversy it has generated in the selection of a Democrat candidate for lieutenant governor, adds even more momentum to the Brady/Plummer campaign.
Thank you for your continued support to take Illinois back..
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