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Giannoulias to face Kirk for U.S. Senate

Wed. February 3, 2010

Chicago, IL - Front-runners from the start, Democrat Alexi Giannoulias and Republican Mark Kirk scored solid primary victories Tuesday night, setting up a battle with national implications for the U.S. Senate seat whose last elected occupant was Barack Obama.



Giannoulias, a one-term state treasurer, became the Democratic nominee by holding off David Hoffman, a former Chicago City Hall corruption watchdog, and Cheryle Jackson, head of the Chicago Urban League, as well as questions about his family's struggling bank and problems with the state college-savings program his office managed.

Kirk, a five-term North Shore congressman who spent a decade building a reputation as a moderate, easily secured the GOP nomination by defeating a field of fellow Republicans who lacked any significant government or political experience but criticized him for shifting away from some moderate positions to win conservative votes.



With 97 percent of the precincts reporting, Giannoulias had 39 percent of the vote to 34 percent for Hoffman and 19.5 percent for Jackson.

Kirk led the GOP primary with 56 percent, compared with 19 percent for Hinsdale businessman Patrick Hughes and single digits for four other candidates.

The two victors will face Green Party candidate LeAlan M. Jones in November.



In declaring victory, Giannoulias wasted little time in going after Kirk, setting the tone for the upcoming Democratic campaign by describing his Republican opponent as out of touch with Illinoisans who are struggling amid the nation's tough economy.

Citing a 2-year-old quote in which Kirk said unemployment was not a major issue in his wealthy North Shore district, Giannoulias declared himself the candidate who will focus on bringing jobs to Illinois.

Addressing Kirk directly, Giannoulias said, "It's obvious that you've spent too many years in Washington, voting with the special interests to ship our jobs overseas, that you don't know that (unemployment is an issue). But come November, congressman, your days as a Washington insider are over."

Kirk, 50, declared victory before Giannoulias, 33, and criticized Democrats in general, saying Illinois needs a Republican in Washington who will focus on cutting spending and being responsible stewards of people's money. He also vowed to help improve the state's economy.

"Over the last year, quiet despair has descended on the state of Illinois -- a governor arrested, a senator's seat disgraced, corruption rampant, unemployment rising and families struggling," he said. "The people of Illinois now see the arrogance of a one-party state. And this election will show that we will not surrender to their dangerous cynicism of low expectations."

The race has already drawn interest from both national parties. Each is seeking to take advantage of a rare open Senate seat after besieged U.S. Sen. Roland Burris, appointed by former Gov. Rod Blagojevich, decided not to run for election.

Democrats will be focused on holding their majority in the Senate and fear the embarrassing symbolism of losing the seat once held by Obama. Republicans are trying to ride what they've described as a wave of dissatisfaction with President Obama's leadership.

During the campaign, Kirk bashed Giannoulias' performance as treasurer. And Giannoulias slammed Kirk for turning to the right to placate conservative voters in the GOP primary. Most notably, Kirk voted in favor of cap-and-trade legislation to limit carbon emissions but has since said he would not vote for such legislation if he was representing the entire state.

While Giannoulias tried to stress his stances on the economy, Hoffman, running as a reformer, persistently attacked his management skills and accountability. He raised questions about Giannoulias' experience and decision-making as senior loan officer at his family-owned Broadway Bank, as well as his handling, as state treasurer, of $150 million in losses by the Bright Start college-savings program.

The bank has run into serious problems with delinquent loans and foreclosed real estate on its books, and Hoffman highlighted questions about loans it awarded to a convicted bookmaker and prostitution ring promoter.

Giannoulias said only a small percentage of the bank's nonperforming loans were made while he was senior loan officer. On Bright Start, he argued his office noticed the losses, ordered corrections and reached a settlement that allowed investors to get back more than half of their lost money.

Giannoulias rose to statewide prominence in 2006 when he received Obama's endorsement for treasurer. The two have known each other for years and played basketball when Obama was a state senator. While Obama did not endorse Giannoulias in the primary, the candidate has said he expects White House support in the general election.

Within minutes of Giannoulias' victory speech, the heads of both the Republican and Democratic senatorial committees issued statements harshly criticizing the rival party's candidate, foreshadowing a contentious battle in the months to come.

Oscar Avila contributed to this report.

--John Chase and Antonio Olivo, ChicagoBreakingNews.com

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