Obama Finance Chair Tied to Sub-Prime (a.k.a. predatory lending) Disaster Dennis Bernstein said yesterday: “During a recent campaign stop in south Texas, Obama met with San Antonio-area residents who had been particularly hard hit by the sub-prime meltdown. He expressed dismay over how lobbyists for the sub-prime lending industry had spent more than $185 million in the last several years for their cause.
“Penny Pritzker, a member of one of America’s richest families and the current finance chair for the presidential campaign of Barack Obama, was the chair of Chicago-based Superior Bank’s board for five years. Superior Bank went belly up in 2001 with over $1 billion in insured and uninsured deposits; 1,406 depositors lost much of their life savings. This collapse came amid harsh criticism of how Superior’s owners promoted sub-prime home mortgages.”
Obama’s Poor Judgment and Predatory Lending
When asked if Obama would hold these financial institutions accountable for losses incurred by homeowners and investors, his campaign refused to comment.
Superior Bank S&L Scandal
On Nov. 1  the Federal Deposit Insurance Corp. pointed the finger at Ernst & Young, Superior’s auditor, in a fraud suit filed in federal court here. But that action comes two months after a group of Superior depositors accused the bank’s owners and directors, including two members of the Pritzker family, of racketeering, claiming they lined their pockets with money looted from Superior savings accounts.
Superior, a suburban Chicago savings and loan, collapsed in early 2001 under the weight of half a billion dollars in subprime loan defaults and improper accounting that had overstated the thrift’s assets by $420 million
Remember the HUD you saw on “The Sopranos”? Fact or Fiction?
From: DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
“A recent episode of “The Sopranos” treated a HUD mortgage insurance program as a fraud opportunity for the mob. Unfortunately, this dramatization had its roots in reality—an actual scam involving New York City brownstones. “