Banking the ‘Chicago Way’? Democrat candidate, Alexi Giannoulias, who is running for Barack Obama’s U.S. Senate seat for the State of Illinois, may have some explaining to do. Broadway Bank, owned by his family and run by his father, has been sold off by the Federal Deposit Insurance Corporation. MB Financial Bank of Chicago bought the failed bank for $394.3 million and now takes possession of Broadway Bank’s $1.1 billion dollars worth of assets. The sale means that the FDIC, which had seized Broadway last year, lost $878 million on the deal.

Candidate Giannoulias, who is Illinois State Treasurer oddly enough, told the Associated Press on Friday that the sale will “inspire him to work harder”. He also added that, “There was no bailout for my father’s bank.” The Democrat contender for the U.S. Senate seat had based his run for state treasurer on his own experience as an executive for the failed bank back in 2006. He has tried to lessen the negative impact of this event on his campaign against Republican Mark Kirk, who currently sits in the U.S. House of Representatives, by saying that his father’s bank was on “solid ground” in 2006, prior to the mortgage and financial meltdown.

Congressman Kirk has moved up in recent polls and now has a slight lead over Giannoulias. Kirk has been making Giannoulias’ family bank an issue during the campaign for Barack Obama’s former U.S. Senate seat. Should Giannoulias lose due to the failure of Broadway Bank, many see it as a blow to President Obama. Senator Dick Durbin (D-IL) is Giannoulias’ campaign chairman and has the echoed the full support of the White House after a recent meeting with Obama Chief of Staff, Rahm Emanuel. Despite Giannoulias once being a regular player at Obama’s basketball games, the White House did attempt to recruit other Democrats to run for the Senate seat last summer. Giannoulias won a hotly contested primary on February 2nd of this year.