# 6 OBAMA, Why does she still have a principal financial role in your campaign?

[indimuse]

6. The head of your campaign finance chair is 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 engaged in deceptive and faulty lending, questionable accounting practices, and charged hidden fees. It made thousands of

dubious loans to mostly poor, strapped homeowners. A disproportionate number of them were minority. Why does she still have a principal financial role in your

campaign?
http://www.americanchronicle.com/articles/56968

:yoiks: :think:


http://www.inthesetimes.com/article/671/

Breaking the Bank
By David Moberg

Hopefully, they were on their way in to close their accounts.
Share Digg del.icio.us Reddit Newsvine 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.

The Superior story has a familiar ring. Using a variety of shell companies and complex financial gimmicks, Superior’s managers and owners exaggerated the profits

and financial soundness of the bank. While the company actually lost money throughout most of the ’90s, publicly it appeared to be growing remarkably fast and

making unusually large profits. Under that cover, the floundering enterprise paid its owners huge dividends and provided them favorable loans and other financial deals

deemed illegal by federal investigators.

Superior’s outside auditor, which doubled as a financial consultant, engaged in dubious accounting practices that kept feckless regulators at bay. Many individuals—

disproportionately low-income and minority borrowers with spotty credit records—had apparently been exploited through predatory-lending techniques, including

exorbitant fees, inadequate disclosure and high interest rates. In the end, more than 1,000 uninsured depositors lost millions of dollars in savings in one of the biggest

bank failures of the past decade.

Yet unlike Enron, the people behind Superior’s collapse were not nouveau-riche corporate hustlers, but members of Chicago’s Pritzker family. The Pritzkers, whose

two current patriarchs—Robert and his nephew Thomas—tie for 22nd place on Forbes’ list of the richest Americans, own an empire valued at more than $15 billion,

including the Hyatt hotel chain, casinos, manufacturers and real estate, and they are major contributors to both political parties. They were equal partners in the private

ownership of Superior with New York real estate developer Alvin Dworman, a longtime associate of Thomas’ father, Jay Pritzker, who died in 1999.






What is it with Obama and the people he surrounds himself with? Outright GROSS!

[NYCGirl]

1. The Pritzkers and Superior Bank

The Pritzkers and Superior Bank
April 03, 2008

Obama Campaign Statement
"Penny Pritzker was never accused of any wrongdoing nor did she receive compensation in relation to the closing of Superior Bank in 2001, and instead of walking away as millions of homeowners and stockholders suffered, the Pritzker family entered into a voluntary settlement and agreed to pay the government $460 million to defray its losses. Former FDIC Chairman William Isaac said he had 'never known any investor in a failed bank to take responsibility as the Pritzkers have done.' Senator Obama believes that the current housing crisis was caused by lax regulation and a system that put the interests of corporations before the interests of homeowners and investors and he has proposed an aggressive plan to step up the regulation of our financial markets to restore fairness and balance to our economy and to prevent a housing crisis of this scale from occurring again."


Penny Pritzker Statement
"I regret that Superior Bank failed in 2001. I was chair of the bank from '91-94 and over those years, the bank achieved high ratings from the Office of Thrift Supervision. Superior's failure was complex. In short, the bank failed in 2001 because regulators concluded that the valuation of certain assets in Superior's financial statements, which had been audited by Ernst & Young for many years and previously approved by regulators, was overstated and as a result the bank was not capitalized sufficiently. My family voluntarily agreed to pay the FDIC $460M to help defray costs incurred by the government and other losses in connection with the bank's closure. We did this without litigation or any allegation by federal regulators of wrongdoing. I am proud of how my family responded to this situation."


THE PRITZKERS DID MORE THAN ANY OTHER BANK OWNER IN HISTORY TO SETTLE THE CASE, VOLUNTARILY SETTLING AND PAYING HALF A BILLION DOLLARS

Forbes: The Pritzkers Agreed To Pay $460 Million; "No Bank Owner In History Had Ever Offered Anything Close To That To Settle A Case." Forbes reported, "The Pritzkers initially seemed confident, offering in July 2001 to infuse the bank with $210 million. But by December, with details of Superior's losses under increasing scrutiny, the family was forced to open its checkbook, agreeing to shell out $460 million over 15 years. No bank owner in history had ever offered anything close to that to settle a case."

Former FDIC Chairman: "I've Never Known Any Investor In A Failed Bank To Take Responsibility As The Pritzkers Have Done." Former FDIC Chairman William Isaac wrote in a Letter to the Editor, "I represented the Pritzkers in their discussions with the FDIC after Superior Bank failed. The family decided to stand behind its investment, ultimately agreeing to pay the FDIC $460 million over a 15-year period, without interest. This is roughly equivalent, on a net present value basis, to the amount the family offered to contribute to keep Superior from failing. I served as FDIC chairman during the 1980s banking crisis. I've never known any investor in a failed bank to take responsibility as the Pritzkers have done. "

The FDIC Lawsuit Against Ernst & Young Didn't "Implicate Superior's Owners Or Management" And The Complaint Went "Out Of Its Way To Sing The Pritzkers' Praises." "The FDIC's allegation against Ernst & Young made big headlines over the weekend. It seeks $2 billion in damages and claims the firm hid accounting errors at Superior to avoid a scandal that might have interfered with the $11 billion sale of Ernst & Young's consulting group in June 2000. But the FDIC's complaint doesn't implicate Superior's owners or management. In fact, it goes out of its way to sing the Pritzkers' praises."


ERNST AND YOUNG DID NOT PERFORM PROPER OVERSIGHT AND ACCOUNTING

December 2005: Ernst & Young Paid FDIC And Pritzkers in Settlement For Faulty Accounting. American Banker reported, "Another recent settlement ended a long-standing case involving the Pritzkers. The failure in 2001 of Superior Bank, which they co-owned, had been blamed in part on faulty accounting. In December, Ernst & Young LLP agreed to a $125 million settlement with the Office of Thrift and Supervision and the Federal Deposit Insurance Corp. The Pritzkers will get $31.25 million."

Ernst And Young Inadequately Oversaw The Books Of Superior. "Ernst & Young LLP, the auditing firm accused of inadequately overseeing the books of now-failed Superior Bank FSB, also received consulting fees from the bank that totaled at least twice as much as the fees it received for its accounting services, a federal regulator said. 'It was a direct conflict,' said Gaston Gianni, inspector general for the Federal Deposit Insurance Corp., in testimony to the Senate Banking Committee Thursday. At the hearing, the FDIC, the Treasury Department and the General Accounting Office placed the blame for Superior's failure on poor management, lax oversight by regulators and inadequate oversight by Ernst & Young. The only committee member present was its chairman, Sen. Paul Sarbanes (D-Md.), who likened Superior's downfall to another corporate failure attracting close congressional scrutiny."

Forbes: "Improper Accounting That Had Overstated the Thrift's Assets by $420 Million." "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."

http://factcheck.barackobama.com/factcheck/2008/04/03/post_4.php

[papau]

4. Pritzker wealth is needed by Obama - so a 1/2 Billion "fine/payment" to stay out of jail is ignored

Ask the Ernest auditors about the case and learn about fraud for the rich and theft of bank assets.

[indimuse]

6. I don't believe Obama's campaign...Chicago Dirty Politics...PERIOD!

Obama begins fund-raising drive

February 1, 2007Recommend

BY LYNN SWEET Sun-Times Columnist
Barack Obama launches his White House bid with almost nothing in the bank. His chief rival, Hillary Rodham Clinton, has more than a $10-million running start for use in her presidential quest. In the money game, even Joe Biden is ahead, with some $4 million in his various campaign warchests.
As scooped in my blog Wednesday afternoon, Obama is tapping Chicago billionaire Penny Pritzker to be the national finance chairman of his presidential campaign. Pritzker is a member of one of the wealthiest clans in the nation.

The Pritzker family founded the Hyatt Hotel chain, one of the biggest and richest private corporations in the United States.

Pritzker has a long history as a donor and, more important for a mega-fund-raiser, a golden Rolodex she can tap on Obama's behalf. Pritzker was on the finance committee for Obama's 2004 Senate run. She is the founder, chairman and CEO of Classic Residence by Hyatt. She is also the chairman of the board of TransUnion Corp.

Don't assume, however, that she will bring on board all the monied members of her family.

Pritzker will have to raise millions of dollars in the next few weeks just to keep Obama competitive with Clinton. Obama is a terrific fund-raiser. But Clinton and President Clinton have been at it since 1991 and are hard-wired into affluent Democratic pockets.

By the way in 2003, Penny Pritzker donated $2,000 for President Bush's re-election.

Obama ended last year with only $516,553 cash on hand in his political action committee, the Hopefund. Out of that amount Obama paid for political expenses in January for the runup to his presidential bid, so he really has less at the starting gate.

Obama is creating a new committee to take in cash for his campaign. The official kickoff is Feb. 10 at the Old State Capital in Springfield. He then flies to Iowa to whip up interest in the crucial first-in-the-country caucus state and overnights there.

The next day, however, is as absolutely critical to Obama as any goodwill and press he gets from Hawkeye voters.

The first major fund-raiser for Obama's presidential campaign is Feb. 11 in Chicago at the Hyatt Regency Chicago on Wacker Drive. He's asking for "hosts" to raise $2,300, "friends" to write a $1,000 check and "guests" to throw in $500.

He'll need to raise at least $1 million from this one event to get in the game.

As much as Obama will be campaigning in the four states with the leadoff presidential primary votes -- Iowa, Nevada, New Hampshire and South Carolina, he will be fund-raising in the cities that play a big role in the as important money primary.

On Feb. 20, Obama hits Beverly Hills. He has a massive fund-raiser with the stars at the Beverly Hilton hosted by movie moguls David Geffen, Jeffrey Katzenberg and Steven Spielberg.

As an incentive to hustle, people who raise at least $46,000 will be invited to a dinner party at Geffen's house.

Another don't assthat Spielberg is backing Obama just because he is helping him raise money. Spielberg may end up in the Clinton camp. He's also hosting an event for Clinton in the spring.

Obama opens his presidential fund-raising drive with a laudable self-imposed ban on accepting money from federal lobbyists, political action committees, registered foreign agents and youths under the age of 16.

A common scam for rich donors is to get around federal giving limits by writing checks in the names of their kids -- students or tots who are being used by their parents.

Obama's conversion to a high standard comes with his White House run.

But he's been willing to take PAC money in the past -- more than $1 million.

While his new standard is welcome, it opens the doors for this question: Should he try to refund PAC and lobbiest money he has taken in the past?

[grasswire]

2. has the question been asked of the campaign?

Or is this another of those secrets the American people never hear about prior to the election, like Bush's DUI?

[NYCGirl]

3. Yes. See my post above. NT

[NYCGirl]

5. Oh, and BTW, her brother works for the Clinton campaign:

http://www.chicagotribune.com/news/nationworld/chi-0705130653may14,1,540339.story?coll=chi-news-hed

As sister and brother, Penny Pritzker and Jay Robert "J.B." Pritzker have fought over everything from toys to how to divide a family fortune worth billions.

Now they are going head-to-head in politics, with the Democratic presidential nomination as their battleground. One is leading the fundraising for Sen. Barack Obama, while the other has a new alliance with Sen. Hillary Rodham Clinton.

In an interview Sunday, J.B. Pritzker said he would become the national chairman of Citizens for Hillary, a new campaign initiative that will be charged with grass-roots outreach, fundraising and policy matters.

[Warren Stupidity]

7. That's different. He is from the good half of the family.

Penny is obviously from the bad half. At least that is as good as an explanation as I can come up with for this show stopper on this particular smear. Expect crickets.