Two days ahead of a powerful pro-Israel lobbying conference in Washington, U.S. Rep. Mark Kirk's campaign is trying to tie Democratic rival Alexi Giannoulias with Iranian state interests.
Giannoulias has called Iran "the greatest single threat to peace in the Middle East." But his family's Broadway Bank secured a loan from a French bank with investments in the Central Bank of Iran and the country's energy sector.
The Weekly Standard, a conservative magazine, reported the link this morning, shortly before The American Israel Public Affairs Committee, commonly known as AIPAC, holds its annual policy conference this weekend.
The National Republican Senatorial Campaign has been promoting the report on its Web site, and Kirk's campaign also sent out a statement.
"Once again, Alexi Giannoulias demonstrates a pattern of reckless decisions and questionable relationships," Kirk spokesman Richard Goldberg said. “Now it appears Mr. Giannoulias’ family real estate portfolio is financed by a French bank known for its investments in Iran’s energy sector and connections to Iran's Central Bank."
"As a Senate candidate, Alexi Giannoulias says he supports divestment from companies doing business with Iran's energy sector; the State Treasurer should do the same with his personal finances."
Kathleen Strand, campaign spokeswoman for Giannoulias, says the $21.5 million loan, used to refinance the bank's real-estate holdings, was proffered through a loan broker — so officials at Broadway had no knowledge of Iranian ties.
"As with any loan of this type, the borrower uses a broker to secure the loan," Strand says. "The borrower is not involved in this process, and in many cases, the loan is quickly split up and sold to different investors."
Furthermore, she says, Giannoulias was not at the bank when Broadway accepted the loan in 2007, after he was elected state treasurer, and that her candidate has refused to accept campaign contributions from any donors who do business with Iran.
Strand also says that, as treasurer, Giannoulias worked to purge the state's contracts of any businesses that have interests in the country.
U.S. legislators are considering tougher sanctions on Iran since it has expanded its nuclear ambitions, which the state declares are peaceful and oriented toward energy production, not war.
Republicans are clearly using the timing of the AIPAC conference to their advantage, and they are also banking on increasing scrutiny of Broadway to damage Giannoulias' reputation.
Early this year, state and federal regulators imposed a consent order on Broadway, sparking speculation that it would be only a matter of time before the Giannoulias family bank fails.