Report: Jim McMahon Being Investigated For Bad Bank Loans

(CBS) Former Bears quarterback Jim McMahon is being investigated by the Federal Deposit Insurance Corp. for bad loans handed out by Broadway Bank, according to a Sun-Times report.

McMahon spent six years as a board member for the now defunct bank that was owned by the family of Alexi Giannoulias, the former Illinois state treasurer. The Super Bowl-winning quarterback is among seven former board members and two former bank executives who are targeted in an FDIC lawsuit. The lawsuit is attempting to recover $104 million lost from 17 bad loans the bank made before regulators shut it down.

“With the advantage of 20-20 hindsight, the FDIC now blames Broadway’s former officers and directors for not anticipating the same unprecedented market forces that also surprised central bankers, national banks, economists, major Wall Street firms and the regulators themselves,” McMahon said in a statement released by his lawyers to the Sun-Times. “I am proud to have served as an outside, independent director for a brief part of the bank’s history. The allegations in the complaint are utterly without merit, and I expect to be fully vindicated.”

McMahon resigned from the bank board in 2008 after the FDIC started to look into the lending practices.

LISTEN: WBBM Newsradio’s Bernie Tafoya reports

  • zatso

    Okay, do you think he did something wrong?

    Before you jump on this one, consider what ex-Gov Thompson did when he was questioned on something similar to him sitting on a board.

    If I remember “big jim” pleaded stupidity and said he didn’t have time to read all those papers he was signing.

    The guv was a lawyer and he didn”t even read the legal papers.

    What do you expect of the QB who is used to reading plays on his wristband.

    Take the president’s wife who sits on a board at the U of C and gets 250K plus, does she read everything?

    Our celebrity crazed nation deserves what it gets for being soooooo stupid


    • Mike

      quit trying to deflect attention away from the fact jim is in some serious hot water. but stay mad though.

      • zatso

        You and I know he did WRONG. Merely stating that others do it and get away with it.


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