Monday, June 14, 2010

Kirk: The Cost to Illinois of Giannoulias' Failures

From Kirk for Senate:

Kirk Statement on Fitch Downgrade of Illinois' Credit Rating

Northbrook, Ill. - Congressman Mark Kirk today released the following statement regarding Friday's decision by Fitch Ratings to downgrade Illinois' credit rating:

"While many are focused on the sovereign debt crisis in Europe, Illinois families are focused on the state debt crisis right here in Illinois. Alexi Giannoulias stood by and watched as our state's debt skyrocketed and our pension liabilities spiraled out of control. His failures at Broadway Bank cost the FDIC $394 million. His failures in Bright Start cost Illinois families more than $70 million. And now his failure to do his job as State Treasurer could cost our state even more. The recent downgrading of Illinois' credit rating by Fitch and Moody's should be a major wake-up call to the citizens of Illinois. We need fiscal leadership at the federal and state level to rescue our state and turn this economy around."

On Friday, Fitch lowered the rating on Illinois' general obligation bonds from 'A+' to 'A' and assigned them a negative outlook. Fitch's announcement followed Moody's decision to downgrade the state's credit rating to A1 - four notches below AAA. Also Friday, Illinois bond yields climbed higher than California's.

Related: Illinois a Pension Meltdown

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