Update 5:25pm EST: CNBC has the video up.

Yes, it’s true. Alexi Giannoulias, Illinois State Treasurer, whose career was kick-started by PEBO, the youngest (and most inexperienced?) Illinois state treasurer, says on CNBC that Blago must step down because the lack of leadership is hurting Illinois debt (and it would be ever so helpful for Alexi and the rest of the Combine if Blago would just go away quietly, but he didn’t mention that part..).

Fitch Ratings has lowered Illinois’ credit grade to AA-. Illinois was apparently ‘forced to delay its plan to borrow 1.4 billion last Thursday’ when S & P placed Illinois on negative credit watch.

Illinois is the second state on negative credit watch, three guesses who is first? I betcha all got it-California.

‘JPMorgan has placed bids on Illinois bonds at interest rates four times the average’

The SHEER UNMITIGATED GAUL, the IRONY, the AUDACITY, of Alexi saying Blago is a bad bad man and this, this is THE best part:

Quote on the chyron from Alexi: THE COST OF CORRUPTION IS REAL

Oh gee, ya think? Ya think HE might know something about this case?? Hmmmmmm?? I have thought he was the one whose ‘rich family might buy him the seat’ since the day of the Blago bust…

From WaPo on the day of the arrest:

Assuming the seat is open, expect a contested primary fight between state Attorney General Lisa Madigan, state Comptroller Dan Hynes and state Treasurer Alexi Giannoulas — all three of whom were considering the race before today’s news. Madigan had been prominently mentioned as a possible appointee to the Senate seat but apparently was far more interested in running for governor.

Go to Alexi’s website for his Treasurer campaign and PEBO’s voice will automatically come on endorsing him.

What qualified Alexi for the very important role of Treasurer of the state of Illinois?

Well according to his website, he will use his, “financial expertise as a banking executive to make wise and sound investments for the people of Illinois’.

Get that? Wise AND sound. Well alrighty then!

From his campaign site:  “Prior to taking office, Giannoulias served as vice president and senior loan officer at Broadway Bank in Chicago’s Edgewater community. Crain’s Chicago Business rated Broadway the No. 1 Bank in Illinois for five years based on return on assets.”

Okayyy the family owned Broadway Bank, a-hem….nuff said there, go google, I like both my kneecaps the way they are….

Ross Kaminsky of the Denver Post has the real scoop:

Obama endorsed Giannoulias for State Treasurer when the latter was just 29 years old, but the NY Post reported that “Giannoulias is so tainted by reputed mob links that several top Illinois Dems, including the state’s speaker of the House and party chairman, refused to endorse him even after he won the Democratic nomination with Obama’s help.” Obama remained a big supporter and is credited with having been an important factor in Giannoulias’s victory.

But, as Crain’s asked, “[J]ust why did Sen. Obama last week endorse for Illinois treasurer an unknown 29-year-old whose financial experience is limited to working at a family-owned Chicago bank, and who, as recently as five years ago, was shooting professional hoops as point guard with team Panionios of Athens, Greece?”

Yes why would he?????

Obama and Giannoulias have been mutual supporters, politically and otherwise, for at least five years, with Giannoulias having contributed $7,000 to Obama’s campaign for the Illinois State Senate seat in 2003 and 2004, an interesting choice for a man who was simultaneously giving $17,000 to the National Republican Congressional Committee.

Giannoulias, who was called Obama’s “protégé” in a Chicago-based publication, has also served as the National Chairman of Greeks for Obama Committee. The organization’s Vice Chairman, Michael Karloutsos, also has a history of supporting Republicans, including a donation to Rick Santorum and Bush-Cheney ’04. He was also a Pioneer for President George W. Bush, meaning he raised at least $200,000 for the Bush-Cheney ’04 ticket. In the past year, he switched his party affiliation “from R to D”.

Giannoulias also hosted a fund-raiser for Obama in Chicago in September, 2007, omitting it from his public schedule and keeping it closed to the press. Could it be that Obama didn’t want the press asking questions about a New York Post article published that same morning entitled “Obama’s Mob-Tie $idekick”?

The NY Post story references the many questions about Giannoulias’ ties to organized crime through Broadway Bank, a Chicago bank that his family owns and where Alexi Giannoulias listed himself both as President and as Chairman of the Board on FEC filings surrounding the campaign contributions mentioned above.

According to a Chicago Tribune article from 2006, Giannoulias “has faced questions about the bank’s multi-million dollar loans to Michael Gioranago, a convicted bookmaker and prostitution ring promoter.” Barack Obama was quoted in the article as saying that he “is concerned by revelations that the bank owned by Illinois Democratic treasurer nominee Alexi Giannoulias’ family gave loans to a Chicago crime figure and said the candidate owes him and the public a full accounting.”

-snip-

Giannoulias also appears to have lied about the bank’s financing of a casino boat marina. And in what may or may not be an ugly coincidence, convicted felon Tony Rezko racked up $450,000 in gambling debts by writing bad checks on his Broadway Bank account. According to Crain’s Chicago Business, “Obama kept his 2004 Senate campaign funds” at Broadway Bank as well.

Giannoulias himself has accepted at least one controversial campaign contribution, from Spiros Naos, an owner of a line of gambling cruise ships, who got ownership of the company after his uncle “was gunned down in an execution-style slaying after selling the gambling fleet to a group that included indicted Washington lobbyist Jack Abramoff”, according to the Chicago Daily Herald. After initially defending the contribution as one Greek helping another, Giannoulias eventually returned the money once the media began dogging him about it.

What we really need is a diagram of some sort to get a view of these relationships and financial interactions….hmmmmm….

Thanks Muckety!!!!! Go see the expandable diagram of these interactions here.

The Squawk Box staff asked Alexi if he would run for Governor or the Senate seat. Alexi laughed and said he doesn’t think he was ever really in contention (funny how many TOP CONTENDERS now say that ain’t it??) and said he wants to be a host of Squawk Box. Hardy har har, way to schmooze Alexi… wonder if Fitz will find you that amusing if you are ever called to account for some of these questionable (a-hem) interactions…..

An earlier appearance by Alexi discussing how ALL the states should make money, OH GOOD GRIEF SOMEBODY SAVE US!!! is here (and oh yeah he is ANOTHER bball partner of PEBO..betcha all those Wharton Business grads are kicking themselves and wishing they had spent more time on the blacktop instead of in study hall……)

You can take the PEBO out of Chicago but you can’t take the Chicago out of the PEBO? I hope not…..

Go see Alexi’s BarackBook page here