State and national Democrats are standing behind their man in Illinois, despite what some believed could be disastrous for Alexi Giannoulias' Senate campaign -- the state treasurer's family-owned bank was seized by federal regulators last week. The FDIC calculates the bank’s failure comes at a hefty price tag of $394 million.

Speaking in Quincy, Ill., Wednesday, President Obama offered Giannoulias, who was in attendance, a special shout-out, calling him the "treasurer and soon-to-be senator." The remark was unexpected after a White House spokesman had earlier suggested that it would not be "appropriate" for the president to do so at an official event.

It was also noteworthy because rumors have circulated in both state and national political circles that party support for Giannoulias could be waning, and perhaps there could be movement toward finding a different nominee. But recently, most evidence is to the contrary.

"The rumors emanate mostly from Republicans and from the 202 area code," said Illinois Democratic Party spokesman Steve Brown. "No Democrats in Illinois or in the state party are talking about that."

One person in Washington talking about it is Sen. John Cornyn, chairman of the National Republican Senatorial Committee. He hinted to reporters Thursday morning that it looked like Democrats replacing Giannoulias on the ticket was a real possibility.

"I just hope that the Democrats in Illinois respect the rights of Democratic primary voters to select their nominee, and we don't see some backroom shenanigans that this White House has been very active in -- in trying to force him out of the race and disrespect the vote of Democratic primary voters there," Cornyn said at a Christian Science Monitor breakfast.

"I just know that Giannoulias is a flawed candidate and they're realizing it -- and I think they're worried," he added.

The Chicago Tribune reported that at the Quincy event Wednesday, Giannoulias was also summoned backstage prior to Obama's remarks for what White House adviser David Axelrod called "catching up." And following the president's remarks, Obama gave Giannoulias a hug.

A public embrace from the president isn't necessarily a good thing for, say, a Republican governor in Florida, but it's a welcome sign of support for this Illinois Democrat, whom the White House needs to keep Obama's former seat blue.