Submit your comments on this article | ||
Home Front: Politix | ||
Obama's Finance Chair Penny Pritzker: Pioneer In SubPrime Mortgages | ||
2008-09-20 | ||
Interesting stuff, caught via AOSHQ Barack Obama has slammed the banking industry for its predatory use of sub-prime mortgages, which are pushing millions of American homeowners toward foreclosure. But his campaign's Finance Chair, Penny Pritzker, owned a failed Chicago thrift that helped pioneer sub-prime financial instruments and faced accusations of abuse. Superior Bank of Chicago went belly up in 2001 with over $1 billion in insured and uninsured deposits. This collapse came amid harsh criticism of how Superior's owners promoted sub-prime home mortgages. As part of a settlement, the owners paid $100 million and agreed to pay another $335 million over 15 years at no interest...
Though Superior Bank collapsed years before the current sub-prime turmoil that is rocking the world's financial markets -- and pushing those millions of homeowners toward foreclosure -- some banking experts say the Pritzkers and Superior hold a special place in the history of the sub-prime fiasco. "The [sub-prime] financial engineering that created the Wall Street meltdown was developed by the Pritzkers and Ernst and Young, working with Merrill Lynch to sell bonds securitized by sub-prime mortgages," Timothy J. Anderson, a whistleblower on financial and bank fraud, told me in an interview. "The sub-prime mortgages," Anderson said, "were provided to Merrill Lynch, by a nation-wide Pritzker origination system, using Superior as the cash cow, with many millions in FDIC insured deposits. Superior's owners were to sub-prime lending, what Michael Milken was to junk bonds." In other words, if you traced today's sub-prime crisis back to its origins, you would come upon the role of the Pritzkers and Superior Bank of Chicago.
| ||
Posted by:Frank G |
#2 Rubbish! This is simply a cheap, "W" scheme to take homes away from |
Posted by: Besoeker 2008-09-20 17:31 |
#1 And Clinton |
Posted by: Bobby 2008-09-20 16:53 |