Eight Banks Seized, One with Ties to Obama; Regulators Allow "Unusual Bid" for Failed Bank

The biggest failure is the one connected to Obama. If you recall our previous publications, you will remember that Superior Bank, which failed for subprime way back in 2001 (and they say the subprime bust couldn't have been predicted!), was also connected through Obama's campaign finance chair, Penny Pritzker (of the Pritzker billionaire clan).

The ShoreBank deal smacks of cronyism as well. Management should not be able to profit from running their own institutions into the ground, but that is exactly what is happening here, as the slate is being wiped clean and the management gets a "second chance" for no stated reason.

In the case of Superior, the Pritzkers also ended up making money off the final settlement (even while many high-dollar-amount depositors lost money), years later, when no one was watching. The FDIC, amazingly, continued running their subprime book, even in receivership, and racked up even more losses.