2008-03-02 — loanworkout.org
Democratic presidential contender Barack Obama says he'll crack down on fraudulent sub-prime lenders. If he really means it he can start by firing his campaign finance chair, Penny Pritzker. Before taking over Obama's campaign finances, she headed up the borderline shady and failed Superior Bank. It collapsed in 2002. The bank's sordid story and its abominable role in fueling the sub-prime crisis are well known and documented.
Great find by Moe. We need to get the corporate crooks who created and profited from the unsound mortgage loan mess out of the political system -- even if we cannot criminally or financially punish them. More excerpts:
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.
Meanwhile, roughly 1,000 depositors who had deposits above $100,000 in a Superior account—money above the FDIC-insured limit—lost about $65 million. Most of them were middle-class individuals, attracted by Superior's high interest rates.
What a scam this system is. When the FDIC is accommodating large payouts to rich criminals, how can anyone argue this isn't a system by the banks for the banks?
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