Ex-Chicago Bears QB McMahon Sued By FDIC On Bank Failure

The Federal Deposit Insurance Corp. (FDIC) has filed a lawsuit against former Chicago Bears quarterback Jim McMahon for his role in the 2010 demise of Broadway Bank.

The Chicago Sun-Times reports that the FDIC is seeking to recover $104 million from 17 failed loans made by the bank before it was shut down in April 2010. McMahon, who served on the bank's board of directors from 2003 to 2008, is among seven board members and two executives being targeted by the FDIC.

The FDIC charges McMahon and his former board members of being ‘grossly inattentive to the affairs of the bank,’ adding that the one-time Super Bowl champion frequently missed board meetings. The bank was owned by the family of Alexi Giannoulias, the former Illinois state treasurer, and the FDIC accused its board of ‘deferring excessively to the whims of the Giannoulias family.’

McMahon, through his attorneys, has issued a written statement disputing the FDIC's charges and questioning the bank regulator's perspicacity.

‘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 says. ‘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.’

(Photo courtesy of CCS)


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