The Wall Street Journal’s John R. Emshwiller notices that Penny Pritzker — Barack Obama’s national campaign-finance chairwoman — helped run Hinsdale, IL-based subprime-mortgage lender Superior Bank to its collapse in 2001:
Ms. Pritzker served as Superior chairman until 1994. During that period, Superior “embarked on a business strategy of significant growth into subprime home mortgages,” which were then packaged into securities and sold to investors, according to a 2002 report by the Treasury Department’s Inspector General.
“Superior was at the forefront of the securitizing of subprime mortgages,” says Timothy Anderson, a retired bank consultant who has studied Superior and other failed thrifts.
Indeed, as noted here back on May 20, Anderson has been quoted as saying that “Superior’s owners were to sub-prime lending what Michael Milken was to junk bonds.â€Â
The far-Left In These Times ran a detailed account of Superior’s collapse in November 2002:
After federal regulators closed the $2.3 billion Superior Bank in July 2001, investigations revealed that the suburban Chicago thrift was tainted with the hallmarks of a mini-Enron scandal. New legal developments are adding additional twists, including racketeering charges. And yet the bank’s owners, members if one of America’s wealthiest families, ultimately could end up profiting from the bank’s collapse, while many of Superior’s borrowers and depositors suffer financial losses.
***
Even taking into account the “record†settlement they made with the FDIC, the Pritzkers could make more than $700 million in additional profit for running a financial institution into the ground. They had already profited handsomely, sharing in the more than $200 million in dividends to the owners in the ’90s. They accomplished all this with an investment of about $21 million for each partnerâ€â€though the Pritzkers had also already benefited from $645 million in tax credits.
It is a story with the potential to dwarf that of Obama’s ex-Veep vetter, James Johnson. But it would require the media to do some legwork to uncover whether — and to what extent — Penny Pritzker profited from the very financial wheelings and dealings Obama condemns on the campaign trail. So I am not holding my breath waiting for the follow-up reportage.
(h/t Memeorandum.)
Update: Insta-lanche!
Comment by Aldo on 7/21 @ 1:13 pm #
It is a story with the potential to dwarf that of Obama’s ex-Veep vetter, James Johnson.
It wouldn’t take much to dwarf the coverage the MSM gave JJ. The LAT did throw all of its investigative journalism weight into allegations that McCain didn’t wait long enough after divorcing his first wife before taking up with Cindy though, so you know they can do some serious legwork when they have the right motivation.
Comment by happyfeet on 7/21 @ 1:22 pm #
More proof I think that alliteration is indicative of poor character. Yeah I’m looking at you Mr. Hugh Hewitt. Also, assonance.
Comment by urthshu on 7/21 @ 2:09 pm #
Yup. Every girl Superman hung around with was a total loon, I think.
Comment by Log Cabin on 7/21 @ 2:27 pm #
It is beginning to feel like 1992 all over again:
Character doesn’t matter when you are correct on the issues.
Comment by takeshi kovacs on 7/21 @ 3:34 pm #
I sense an ABBA tune, coming up, maybe ace of base, “mortgage queen” wrk with me, people
Comment by Sdferr on 7/21 @ 3:37 pm #
I would work with you takeshi, but (how shameful it is to admit) I don’t know the lyrics. Arrrgh.
Comment by Palooza on 7/21 @ 3:43 pm #
Yawn. The next POTUS is out in Iraq working out the withdrawal of our troops with the Iraqi government…. nobody but you loons give a crap.
Comment by kelly on 7/21 @ 3:53 pm #
“The next POTUS is out in Iraq working out the withdrawal of our troops with the Iraqi government…. nobody but you loons give a crap.”
Don’t you have a poster of THE ONE you could be jacking off to?
Comment by Spies, Brigands, and Pirates on 7/21 @ 4:04 pm #
Don’t matter if your pay is low
Zero docs to start the show
Where they set up the swindles, makin’ CPAs moan
You come in to look for a loan
Anybody can own a home
Morons in the Capitol Dome
With federal handouts everything’s fine
Interest-only, zero money down,
If you can’t flip the fucker, you can always skip town.
You are the Sub-Prime Queen, sleazy accounting, prime rate seventeen
Sub-Prime Queen, feel the heat from the FDIC
You can scam, you can jive, skate with a nominal fine
Buy that house! When you default, watch investors scream!
Comment by Palooza on 7/21 @ 4:04 pm #
I would rather have your pic Kelly (assuming you are a chick). You sound like one of those hot, repressed, conservative chicks… ;)
Comment by kelly on 7/21 @ 4:16 pm #
Wrong chromosomes, dude.
Trackback by The American Mind on 7/21 @ 4:33 pm #
Obama Fundraiser Linked to Subprime Lender…
Karl at Protein Wisdom and Erick Erickson both linked to the Wall Street Journal story about Sen. Obama’s fundraising chairman Penny Pritzker and her involvement with collapsed subprime mortgage lender Superior Bank.
Reporter John Emshwiller tr…
Comment by Palooza on 7/21 @ 4:56 pm #
Having a girl’s name, perhaps you should refrain from referring to “jacking off” in a comment thread… unless of course you are teh gay.
Comment by kelly on 7/21 @ 5:59 pm #
I’m German Irish, dickweed. I’m sure “Palooza” is short hand for auto-erotic asphyxiation.
Comment by JD on 7/21 @ 7:07 pm #
Jagoffapalooza apparently is a homophobe, or has a mouthful of cum tonite.
Comment by Blitz on 7/21 @ 7:14 pm #
JD, Tonight? Most all nights from what I’ve read. Probably some other orifices too.
Pingback by Obama Fundraiser Linked to Subprime Lender | on 7/21 @ 8:00 pm #
[...] Karl at Protein Wisdom and Erick Erickson both linked to the Wall Street Journal story about Sen. Obama’s fundraising chairman Penny Pritzker and her involvement with collapsed subprime mortgage lender Superior Bank. [...]
Pingback by More Change We Can Believe in … Penny Pritzker, Obama’s National Campaign-Finance Chairwoman was a Subprime Mortgage “Queen” | Scared Monkeys on 7/21 @ 8:27 pm #
[...] believe in … Think the media will ever cover this subprime mortgage embarrassing story? As Protein Wisdom states, “So I am not holding my breath waiting for the follow-up reportage.” As we can [...]
Comment by Swen Swenson on 7/21 @ 9:08 pm #
What makes you think Palooza is a dude?
Comment by JorgXMcKie on 7/21 @ 9:13 pm #
How’s that “President Kerry” thing working out for you, palooka?
Comment by Americaneocon on 7/21 @ 9:14 pm #
I took a shot at this story as well…
Nice work!
Pingback by ZEITGEIST on 7/21 @ 10:00 pm #
[...] you know, when they give him money. More, um, piquant treatment at Protein Wisdom. Big quotes: “Superior’s owners were to sub-prime lending what Michael Milken was to junk bonds.” [...]
Comment by David R. Block on 7/21 @ 10:31 pm #
http://www.pajamasmedia.com/instapundit/archives2/021940.php
Professor Reynolds is at it again.
Comment by David on 7/21 @ 10:32 pm #
In the interest of, you know, truth and stuff:
Payback: Conspiracy to Destroy Michael Milken and His Financial Revolution
The Politically Incorrect Guide to American History
Comparing Pritzker to Milken gives the former way too much credit.
Comment by Karl on 7/21 @ 10:51 pm #
David,
I’m just pointing out how the Left saw the Superior Bank case… until now.
Pingback by Written Words - Alliteration « words. before. words. on 7/21 @ 11:52 pm #
[...] comment came at Protein Wisdom, in response to a post that compared the damage Penny Pritzker and James Johnson will do to the [...]
Comment by The Ace on 7/22 @ 7:49 am #
working out the withdrawal of our troops with the Iraqi government….
Yeah, not that fast really - Obama, 46, has said he would remove U.S. combat troops from Iraq by mid-2010, shifting some brigades to Afghanistan.
Remember when he vowed, not indicated, stumbled over, or meandered on, but promised to get them out now?
I guess you ignorants are ok with a few lies as long as you feel good inside for voting for a black guy.
Comment by Percy Dovetonsils on 7/22 @ 7:50 am #
I am just amused once again how the Democrats have become the party of the rich, the crony capitalist, and the typical urban professional douchebag.
Comment by Percy Dovetonsils on 7/22 @ 7:52 am #
“I guess you ignorants are ok with a few lies as long as you feel good inside for voting for a black guy.”
Ace, the joke will be on them when these guys realize that despite voting for Obama, black people still don’t like them.
Comment by hopeful on 7/22 @ 2:42 pm #
Maybe some of the newly unemployed journalists we read about everyday might figure out that they could make millions with a corruption scoop and that the democrats might prove fertile ground. Start digging the gold mine fellas! After all, what have the Democrats done for you lately?
Pingback by Is Karl’s Post On Penny Pritzker Racist? [Dan Collins] on 7/22 @ 3:22 pm #
[...] Because, you know, calling Penny Pritzker a subprime mortgage queen is like calling her a welfare queen. I guess. If by welfare you mean hundreds of millions in government tax breaks. [...]
Comment by reliapundit on 9/25 @ 8:55 pm #
actually i broke this story about pritzker the day before the wsj.
ace and others linked to it.
here:
http://astuteblogger.blogspot.com/2008/09/sub-prime-slime-obama-and-pritzker-and.html
http://astuteblogger.blogspot.com
/2008/09/sub-prime-slime-obama-and-pritzker-and.html
Comment by forex on 3/24 @ 6:35 am #
@Percy Dovetonsils:
I divide your opinion
Comment by Coupon Artist, Frugality and Smart Spending Blogger on 4/30 @ 9:25 pm #
Wow, so much for Obama being a candidate who was going to change politics and blah blah blah. It looks like he’s appointing friends and supporting the “Big Business” just as much as any other candidate, if not more so. How disappointing!