Alexi Giannoulias
Alexander Giannoulias | |
|---|---|
| Born | March 16, 1976 Chicago, Illinois, U.S. |
| Occupation(s) | Politician, financial professional |
| Years active | 2002–present |
| Known for | Illinois Secretary of State, Illinois Treasurer |
Alexander Giannoulias (born March 16, 1976) is an American politician and financial professional currently holding the office of Illinois Secretary of State. He previously served as the 72nd Illinois Treasurer from 2007 until 2011.
Affiliated with the Democratic Party, Giannoulias secured victory in the 2006 Illinois Treasurer race, capturing 54% of the vote and becoming the first Democrat to occupy that role in over a decade. He was the party’s candidate for the U.S. Senate in 2010 but was narrowly defeated by Republican Mark Kirk. In 2018, he returned to public service by joining the Chicago Public Library Board. Giannoulias was elected Illinois Secretary of State in 2022, taking over from longtime officeholder Jesse White.
Early life
Giannoulias was born in Chicago to Greek immigrant parents—his mother hailing from Chania and his late father from Kalavryta. He has two older brothers. His education began at The Latin School of Chicago, followed by initial college studies at the University of Chicago before transferring to Boston University, where he graduated cum laude with a bachelor’s degree in economics. While at Boston University, he competed in Division I basketball and later played professionally for a year (1998–99) with Greece’s Panionios B.C..
Upon returning to the United States, Giannoulias earned his Juris Doctor from Tulane University Law School. He then took on a leadership role at Broadway Bank, a community bank founded by his father in Chicago’s Edgewater neighborhood in 1979. His involvement extended to serving on boards such as the Community Bankers Association of Illinois Legislative Committee and the Edgewater Chamber of Commerce. Additionally, he established the AG Foundation, a nonprofit organization dedicated to supporting child health initiatives, poverty alleviation, and disaster relief programs.
Elections
Although facing resistance from the state Democratic leadership under House Speaker Mike Madigan, Giannoulias gained endorsements from prominent figures including U.S. Representatives Jan Schakowsky, Jesse Jackson Jr., and then-Senator Barack Obama.
The Chicago Sun-Times endorsed him during the general election, citing his valuable private banking background and innovative plans like introducing a securities lending initiative, improving Bright Start programs, and advocating for green energy development. Running on a platform that prioritized extensive ethics reforms within the Treasurer’s office, Giannoulias won the March 2006 primary before defeating Republican Christine Radogno in the general election.
Ethics reform
On his inaugural day as State Treasurer, Giannoulias implemented an executive order that established one of the most stringent ethics policies among Illinois elected officials. This measure banned contributions from banks, employees, and contractors engaged with the Treasurer’s Office. He also commenced foreclosure actions against two financially troubled hotels in Springfield and Collinsville that were developed by individuals with political ties.
Hartmarx
In 2009, Giannoulias played a key role in securing Wells Fargo's collaboration in the sale of Chicago-based apparel manufacturer Hartmarx Corp., which had entered Chapter 11 bankruptcy and was facing liquidation. His efforts saved more than 600 jobs at an Illinois Hartmarx facility that was otherwise slated for closure.
Initially, Wells Fargo, the main lender to Hartmarx and custodian of Illinois' treasury funds, blocked the transaction. Giannoulias publicly condemned Wells Fargo, cautioning that its preference for liquidation over selling to buyers dedicated to preserving the company could jeopardize its standing with Illinois.
He underscored that Wells Fargo had received over $25 billion in federal TARP bailout money, asserting that the bank had a responsibility to support American employment through facilitating the sale. Giannoulias remarked, "Entities receiving taxpayer funds at the state and federal levels should invest in American jobs and workers instead of dismantling companies with potential for success."
Green Rewards
Giannoulias introduced the Green Rewards initiative, which provided Illinois residents with a $1,000 rebate incentive for purchasing new hybrid or other fuel-efficient vehicles, encouraging environmentally friendly transportation options.
Purchase of Israel Bonds
In January 2009, Illinois allocated $10 million toward Israel Bonds as part of a strategy to diversify investments amid instability in U.S. markets. Giannoulias pointed out that these bonds mature in three years with a 2.43% yield, outperforming similar U.S. government securities yielding 1.51%, illustrating prudent portfolio management during economic uncertainty.
Scholarship programs
Giannoulias expanded access to college scholarships in Illinois by enhancing the Bright Start savings plan and launching additional programs. The Fallen Heroes Scholarship Program, developed collaboratively with the Illinois Department of Veterans Affairs, provides $2,500 in college savings accounts to children of military personnel who have died since 2001.
In 2008, he initiated the Bright Start Scholarship Program, committing $3.5 million over seven years toward need-based scholarships through a public–private partnership without taxpayer expense. The program awarded scholarships to over 250 students in its inaugural year. Additionally, he established the Cultivate Illinois Excellence in Agriculture scholarship, offering ten annual awards of $2,000 each to students pursuing agriculture-related studies.
Bright Start
During his tenure as Illinois Treasurer, Giannoulias managed the Bright Start college savings program, which allows parents to invest tax-free for their children's higher education using a range of stock and bond options. Prior to his leadership, Bright Start ranked 47th nationally; under his guidance, it evolved into a highly regarded program lauded by Morningstar as "a Cinderella story."
In 2008, the Core Plus fund within Bright Start experienced a 38% decline due to high-risk investments overseen by OppenheimerFunds, while the overall program benchmark increased by 5.4%. Roughly 2.5% of investors fully allocated to Core Plus suffered substantial losses. Following investigations by several states into OppenheimerFunds' management—an entity originally selected before Giannoulias' term—Illinois ceased new contributions to Core Plus at the end of 2008 and initiated inquiries into losses surpassing $85 million.
Despite this challenge, Bright Start retained a strong reputation. In 2009, Consumer Reports ranked it among the top five college savings plans nationwide; Money Magazine and Kiplingers acknowledged it for its low risk and minimal fees respectively. Morningstar noted that Illinois’ prompt response helped maintain the plan’s attractiveness.
By December 2009, Illinois reached a $77 million settlement with OppenheimerFunds to compensate affected account holders for total losses estimated at approximately $150 million. Families recovered just over half of their invested amounts.
Revenue from Bright Start investment fees was used to purchase a hybrid vehicle employed by staff for outreach and promotion of Treasurer’s Office programs; Giannoulias did not use this vehicle for personal reasons.
Additional Initiatives as Treasurer
In 2007, Giannoulias introduced a pilot initiative to auction the contents of abandoned safe deposit boxes via eBay, replacing the traditional annual in-person state auctions.
Broadway Bank
Between 2002 and 2006, Giannoulias held the positions of senior loan officer and vice president at Broadway Bank, a community financial institution established by his father. At the time of his departure, the bank was recognized as one of Illinois' most profitable. However, by January 2010, Broadway entered into a consent decree with the FDIC requiring capital enhancements. The aftermath of the 2008 financial crisis saw numerous Illinois banks fail, including Broadway.
The bank's difficulties were largely due to nonperforming real estate loans and foreclosures. Construction and development lending expanded sixfold during Giannoulias’ tenure, reaching $356 million. Additionally, brokered deposits—generally more expensive funding sources—increased to comprise 80% of total deposits. The collapse of the housing market had a significant adverse effect on Broadway’s real estate lending portfolio.
Loans classified as nonperforming that originated while Giannoulias served as chief loan officer accounted for nine percent of the bank’s troubled assets.
On April 23, 2010, the Illinois Department of Financial and Professional Regulation took control of Broadway Bank and appointed the FDIC as receiver. MB Financial Bank acquired Broadway’s deposit accounts. The FDIC and MB Financial shared losses totaling $878.4 million, with the federal Deposit Insurance Fund incurring $394.3 million in costs.
Broadway Bank Lending Activities
Broadway Bank extended real estate development financing to Tony Rezko, a political fundraiser and developer later convicted for fraud and money laundering offenses. These loans were granted prior to Rezko’s investigation or indictment but after the underlying criminal activities occurred. Rezko also secured loans from multiple Chicago banks including Bank of Chicago, First Bank and Trust of Illinois, GE Capital, Harris Trust and Savings, LaSalle Bank, and Manufacturers Bank.
Giannoulias did not have direct involvement in approving Rezko’s loans. Rezko defaulted on Broadway’s loans, leading Broadway to be the first lender to foreclose on one of his delinquent properties in 2006, which contributed to his bankruptcy filing. Furthermore, in early 2008 Broadway declined to honor nine bad checks written by Rezko totaling $450,000.
Rezko never contributed financially to Giannoulias' political campaigns.
Broadway also provided loans for real estate projects to Michael Giorango, who was later convicted on charges related to prostitution and illegal gambling. Giannoulias stated he was not part of the loan committee responsible for approving these credits.
2010 U.S. Senate Campaign
Giannoulias contended against Republican Mark Kirk, Green Party candidate LeAlan Jones, and Libertarian Mike Labno. He vowed to establish a "Senate Progressive Caucus" modeled after the Congressional Progressive Caucus in the House.
On March 2, 2009, Giannoulias announced on CNBC that he was forming an exploratory committee for a possible Senate run in 2010. He formally entered the race on July 26, 2009, at Chicago’s Hilton Hotel—the same location where Barack Obama had endorsed him for State Treasurer in 2006—with Congressman Bill Foster introducing him.
Although he did not receive President Obama’s endorsement and faced efforts by the White House to recruit an alternative Democratic candidate, Giannoulias secured victory in the Democratic primary held on February 2, 2010. He garnered 38.9% of votes against David H. Hoffman’s 33.7% and Cheryle Jackson’s 19.8%.
His campaign earned endorsements from organizations such as Planned Parenthood, SEIU, AFSCME, AFL–CIO, League of Conservation Voters, Human Rights Campaign (HRC), Chicago Sun-Times, and Sierra Club—some of which had previously supported his Republican rival Mark Kirk.
On May 28, 2010, HRC publicly endorsed Giannoulias due to his strong advocacy for LGBT rights including marriage equality and repealing discriminatory laws.
Early support came from figures like James Houlihan and Manny Flores. U.S. Senator Dick Durbin served as chairman of Giannoulias’ campaign; Durbin is also the Senate Assistant Majority Leader.
During the campaign, Giannoulias faced criticism regarding his family-owned Broadway Bank's federal seizure amid allegations connecting it to organized crime activities. Meanwhile, his opponent Kirk confronted controversies related to military service records.
In the general election on November 2, 2010, Mark Kirk narrowly defeated Giannoulias with a final tally of 48% to 46%.
Chicago Public Library Board
Giannoulias was appointed to the Chicago Public Library Board on June 26, 2018, marking his initial reentry into public service following his departure from the Treasurer's office.
Illinois Secretary of State
Seeking to replace the retiring Jesse White, Giannoulias campaigned for the position of Illinois Secretary of State. During the Democratic primary, his rival, Anna Valencia, who serves as Chicago City Clerk, criticized him for having previously endorsed a Republican candidate known for anti-abortion stances. On June 28, 2022, Giannoulias secured victory in the Democratic primary and subsequently overcame Republican contender Dan Brady in the general election held on November 8, 2022.
Personal life
In 2014, Giannoulias wed Jo Terlato at Chicago’s St. Andrew Greek Orthodox Church. He practices the Greek Orthodox faith, and together they are parents to four children.