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McMahon sued over bank's loans

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McMahon sued over bank's loans

In an attempt to recover 104 million, federal authorities have sued former Chicago Bears quarterback Jim McMahon and eight others involved in a now-failed bank that was at the center of the campaign for President Obama's old U.S. Senate seat.

Seven former directors -- including McMahon -- and two officers of Broadway Bank ignored federal warnings about just how risky some of the bank's loans were, according to the Federal Deposit Insurance Corp. lawsuit filed last month. Two loans were approved in 2008 on the very day regulators "specifically warned" about "the risks that these types of loans posed to the Bank."

In all, 104 million in losses from 17 loans ''were caused by gross negligence'' and breaches of fiduciary duty by the defendants, the lawsuit says.

McMahon's involvement was confirmed Monday by a person close to the case who spoke on condition of anonymity because he was not authorized to speak publicly about the details. It was first reported by the Chicago Sun-Times.

McMahon, the brash leader of the Bears, led the team to the 1986 Super Bowl victory over New England. He is now among dozens of retired players who have sued the NFL, blaming the league for concussion-related dementia and brain trauma.

Also named in the FDIC lawsuit are relatives of former Illinois treasurer and Senate candidate Alexi Giannoulias. Giannoulias, who was an officer at the bank that was founded by his father before being elected state treasurer in 2006, is not named in the lawsuit. But the allegations of shady loans at the bank that was shutdown in 2010 dogged him throughout his unsuccessful Senate bid against Mark Kirk that year.

In a statement released through his attorneys, McMahon said Broadway Bank's failure stemmed from the bank's inability to "withstand the greatest market decline since the Great Depression" and not any wrongdoing.

"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," he said. "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 was on the board of directors from 2003 through late December 2008. The FDIC says McMahon played a role in only one of the 17 bad loans, when the board approved a 28 million loan that resulted in a loss of 19 million.

"Despite his board responsibilities," the lawsuit also says, "McMahon repeatedly missed critical board meetings."
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

SportsTalk Live Podcast: The bullpen falters twice. Is it time to call Craig Kimbrel?

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USA TODAY

SportsTalk Live Podcast: The bullpen falters twice. Is it time to call Craig Kimbrel?

Mark Schanowski, Mark Carman and Matt Spiegel join Kap on the panel.

0:00- The Cubs take 2 out of 3 from the D'Backs thanks to a surprisingly solid start from Tyler Chatwood. Should the Cubs trust him more than they trust Yu Darvish? Meanwhile, the bullpen falters twice. Is it time to call Craig Kimbrel?

12:00- The guys preview the huge series against the Dodgers at Wrigley.

16:00- The White Sox lose 2 of 3 in Detroit but Kap is still excited about the future.

20:00- The NBA Eastern Conference playoffs are becoming a fight. So who will win the East? And can anybody even threaten the Warriors?

Listen to the entire podcast here or in the embedded player below.

Sports Talk Live Podcast

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Robbie Gould-Bears reunion appears to be all but dead

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USA TODAY

Robbie Gould-Bears reunion appears to be all but dead

Any chance of a Robbie Gould-Bears reunion happening for the 2019 season seems to be all but dead.

Monday, 49ers general manager John Lynch said that Gould will be with the team in 2019.

“Robbie is going to be a part of us this coming year, I know that,” Lynch said. “We would like it to be longer than that. We’ve made an attempt to make it happen. We haven’t come to an agreement as of yet, and we’ll see where that goes.

“But Robbie will be a part of us this coming year, and we’re excited for that because he’s very good at what he does and he’s also a big part of this team.”

Gould joined the 49ers in March 2017 on a two-year, $4 million contract. The 49ers placed the franchise tag on Gould on February 26, though the 36-year-old kicker has yet to sign the one-year, $4.9 million tender.

According to NBC Sports Bay Area, Gould is not participating in the 49ers' offseason program—he isn't obligated to do so— instead working out in the Chicago area. NBC Sports Bay Area also reported that the 49ers hope to re-sign Gould to a multi-year deal and spoke to the kicker's representation at the NFL Combine.

Lynch's declaration doesn't guarantee that Gould will sign the franchise tender, but it does indicate that he isn't on the market. Essentially, if Gould plays in the NFL in 2019, he will be with the 49ers. 

The Bears released Cody Parkey on March 13 after a rough first season in Chicago. This offseason, the team has added kickers Redford JonesChris Blewitt and Elliott Fry. The Bears are expected to add more kickers to the competition as the offseason moves along.

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