July 21, 2008

Obama’s moneywoman was a subprime mortgage queen [Karl]

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.”

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 partner—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!

Posted by Karl @ 1:04pm
37 comments | Trackback

Comments (37)

  1. 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.

  2. More proof I think that alliteration is indicative of poor character. Yeah I’m looking at you Mr. Hugh Hewitt. Also, assonance.

  3. Yup. Every girl Superman hung around with was a total loon, I think.

  4. It is beginning to feel like 1992 all over again:

    Character doesn’t matter when you are correct on the issues.

  5. I sense an ABBA tune, coming up, maybe ace of base, “mortgage queen” wrk with me, people

  6. I would work with you takeshi, but (how shameful it is to admit) I don’t know the lyrics. Arrrgh.

  7. 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.

  8. “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?

  9. 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!

  10. I would rather have your pic Kelly (assuming you are a chick). You sound like one of those hot, repressed, conservative chicks… ;)

  11. Wrong chromosomes, dude.

  12. Pingback: The American Mind

  13. 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.

  14. I’m German Irish, dickweed. I’m sure “Palooza” is short hand for auto-erotic asphyxiation.

  15. Jagoffapalooza apparently is a homophobe, or has a mouthful of cum tonite.

  16. JD, Tonight? Most all nights from what I’ve read. Probably some other orifices too.

  17. Pingback: Obama Fundraiser Linked to Subprime Lender |

  18. Pingback: More Change We Can Believe in … Penny Pritzker, Obama’s National Campaign-Finance Chairwoman was a Subprime Mortgage “Queen” | Scared Monkeys

  19. Wrong chromosomes, dude.

    What makes you think Palooza is a dude?

  20. How’s that “President Kerry” thing working out for you, palooka?

  21. I took a shot at this story as well…

    Nice work!

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  23. 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.

  24. David,

    I’m just pointing out how the Left saw the Superior Bank case… until now.

  25. Pingback: Written Words - Alliteration « words. before. words.

  26. 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?

    Obama’s plan, outlined before an audience of about 500 at Ashford University, calls for the complete pullout of troops by the end of next year by bringing home one or two brigades each month.

    “Let me be clear: There is no military solution in Iraq. There never was,” he said. “‘The best way to protect our security and to pressure Iraq’s leaders to resolve their civil war is to immediately begin to remove our combat troops. Not in six months or one year – now.”

    -Sept 12, 2007

    I guess you ignorants are ok with a few lies as long as you feel good inside for voting for a black guy.

  27. 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.

  28. “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.

  29. 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?

  30. Pingback: Is Karl’s Post On Penny Pritzker Racist? [Dan Collins]

  31. 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

  32. @Percy Dovetonsils:
    I divide your opinion

  33. 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!

  34. Well I wish that the legacy from the Lehman Bros was not still being felt in the UK, we have a number of sub prime companies that are currently stamping on the consumer, companies that were under Lehman Bros hat but sadly they are surviving http://www.shaunparker.info/capstone-mortgages-beware/655283 this tells you about the misery now in the UK for consumers.

  35. Pingback: For sale: Obama Cabinet Appointments | Flopping Aces

  36. Pingback: For sale: Obama [Used] Cabinet Appointments | ConservativeWatchNews.com

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