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Kirk new ad slams Giannoulias on Bright Start, "risky" bank loans and Bush tax cut

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below, from Kirk....

Kirk Launches New Ad: "Trust"

Statewide TV Spot Contrasts Alexi Giannoulias' recklessness with Mark Kirk's policies to put Illinois back to work

Northbrook, Ill. - With record deficits and over 10 percent unemployment in Illinois, the Kirk for Senate campaign today launched a new statewide television spot contrasting Alexi Giannoulias' recklessness with other people's money with Mark Kirk's record of spending less, taxing less and borrowing less to put Illinois back to work.

The 30-second spot entitled "Trust" can be viewed online here. A full script and fact check for "Trust" appears below.



Ad Script and Fact Check: "Trust"

Trust your money with Chicago politician Alexi Giannoulias?

Alexi misled families in the Bright Start college savings scandal.

Statement: "What I can tell you is that the Bright Start College Savings Program is a strong and well-diversified program..." (Alexi Giannoulias, October 29, 2008 Letter)

Contradicted by: September 16, 2008 and October 20, 2008 Oppenheimer presentations to the Illinois Treasurer's Office disclosed that the Core Plus fund had 76.6% of its assets in mortgage-backed securities and junk bonds at the end of August, 2008, and 87.4% of its assets in mortgage-backed securities and junk bonds at the end of September, 2008. The September 16th presentation showed these asset concentrations were significantly in excess of Core Plus' benchmark allocations.

Statement: "...that is standing by its management strategies, which have helped generate solid, long-term resulted for investors." (Alexi Giannoulias, October 29, 2008 Letter)

Contradicted by: A September 24, 2008 Core Bond Competitiveness Chart provided by Oppenheimer Funds to the Illinois Treasurer's Office that shows that as of August 31, 2008, Core Bond was the second-worst performing fund among its peers for the year to date, the worst performing fund over one year, the third-worst performing fund over three years, and tied for the second-worst performing fund over five years. By the time Giannoulias sent his letter on October 29th, Core Plus had deteriorated significantly further from its August 31st position.

Cost to them: $73 million.

"Illinois' Bright Start college savings funds lost nearly twice as much as state officials have previously announced -- about $150 million -- the state treasurer's office confirmed today as it announced a settlement with the fund manager that will recover about 50 cents on the dollar for families who lost money. The $77 million settlement with Oppenheimer Funds Inc., announced today by Treasurer Alexi Giannoulias and state Atty. Gen. Lisa Madigan would partially reimburse about 65,000 account holders." (Chicago Tribune, "Losses in Bright Start are nearly twice what treasurer's office announced," 12/22/2009)

Alexi's risky loans helped trigger the Broadway Bank collapse.

From 2002 to 2006, Alexi Giannoulias increased Construction & Development loans from $80 million to $356 million - expanding such risky investments from 25 percent to 46 percent of the bank's total loan portfolio. (Chicago Reader, Alexi's Albatross, 12/3/09)

From 2002 to 2006, Alexi Giannoulias increased the bank's brokered deposits (also known as "hot money") fourfold to $640 million. The typical bank at this point was growing brokered deposits at about 9 percent a year. (New York Times, "As Lender, Senate Candidate Impacted Bank Woes," 1/30/10)

When Alexi Giannoulias left the bank, the ratio of brokered deposits to total assets at Broadway was 68 percent, according to FDIC records. The average for all federally insured banks nationwide was 4.5 percent. (Chicago Reader, "Alexi's Albatross," 12/3/09)

Cost: $394 million.

"The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $394.3 million." (FDIC Press Release, April 23, 2010)

And now to fund even bigger government, Giannoulias supports higher state and federal income taxes.

Giannoulias: "Those Tax Cuts Were Unnecessary And Irresponsible, And I Would Allow Them To Expire." ("Giannoulias Tribune Endorsement Questionnaire," Chicago Tribune)

Giannoulias: "I Have Said From Day One, As Your State Treasurer, That, While Politically It's Not The Smartest Thing To Say, We Need An Income Tax Increase." (Alexi Giannoulias, 3/20/10)

"[Giannoulias] Does Answer The Tax Question Clearly, Arguing An Income Tax Increase Must Be Part Of The Solution With State Government Drowning In Red Ink." (Christopher Wills, "Some Illinois Officials Avoid Tax Debate," The Associated Press, 6/9/09)

Giannoulias: "I Don't See Any Other Way Than New Revenues." (Ryan Keith, "Giannoulias Not Always In Lockstep With Obama's Policies," The State Journal-Register, 12/14/09)

Giannoulias: The Stimulus "Should Have Been Even Bigger." ("State Treasurer: Stimulus Won't Fix Budget," Bloomberg, 2/23/09)

KIRK: I'm Mark Kirk and I approved this message because I will spend less, tax less, and borrow less to put Illinois back to work.

In Endorsing Kirk's Candidacy, The Peoria Journal Star Called Kirk A "Deficit Hawk." "He'll draw you a chart graphing how and when he believes the Democrat-sponsored bills will break the federal budget. He is a deficit hawk." (Editorial, "Republican Endorsement: U.S. Senate - Kirk," Peoria Journal Star, 1/22/10)

In Endorsing His Candidacy, The Chicago Tribune Noted Kirk's "All About Fiscal Responsibility." "Kirk is all about fiscal responsibility. He wants to reduce the national debt, balance the budget and stop the disgraceful practice of earmarking billions of taxpayer dollars for politicians' pet projects." (Editorial,"Kirk For Republicans," Chicago Tribune, 1/12/10)

Mark Kirk voted to cut taxes over 40 times in Congress. H.R. 3, 3/8/01; H.R. 6, 3/29/01; H.R. 8, 4/4/01; H.R. 10, 5/2/01; H.R. 586, 5/15/01; H.R. 1836, 5/16/01; H.R. 622, 5/17/01; H.R. 1836, 5/26/01; H.R. 7, 7/19/01; H.R. 2563, 8/2/01; H.R. 2884, 11/13/01; H.R. 3090, 10/24/01; H.R. 3529, 12/20/01; H.R. 622, 2/14/02; H.R. 3090, 3/7/02; H.R. 3762, 4/11/02; H.R. 586, 4/18/02; H.R. 4626, 5/21/02; H.R. 4800, 6/4/02; H.R. 4823, 6/4/02; H.R. 2143, 6/6/02; H.R. 4019, 6/13/02; H.R. 4931, 6/21/02; H.R. 5063, 7/9/02; H.R. 1307, 3/20/03; H.R. 2, 5/9/03; H.R. 2, 5/23/03; H.R. 8, 6/18,/03; H.R. 7, 11/17/03; H.R. 4227, 5/5/04; H.Res. 637, 5/12/04; H.R. 8, 4/13/05; H.R. 4297, 12/08/05; H.R. 5970, 7/29/06; H.R. 5638, 6/22/06; H.R. 4297, 5/10/06; H.R. 5140, 1/29/08; H.R. 5140, 2/7/08; H.R. 6081, 5/20/08; H.R. 6275, 6/25/08; H.R. 7005, 9/24/08 (Clerk of the U.S. House of Representatives)


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Lynn Sweet

Lynn Sweet is a columnist and the Washington Bureau Chief for the Chicago Sun-Times.

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This page contains a single entry by Lynn Sweet published on September 21, 2010 6:32 PM.

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