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 abo...