Obama Finance Chair Linked To Subprime Industry

Obama Finance Chair Linked To Subprime Industry

Consortium News   |  Dennis Bernstein   |   February 28, 2008 09:56 AM


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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.

One might wonder why Hillary Clinton's campaign hasn't jumped on this issue. Maybe it's because Penny's little brother, J.B. Pritzker, is a mover and shaker in the Clinton campaign.

In May of 2007, Jay Robert, aka, (J.B.) Pritzker, threw his support behind Hillary Clinton, representing a coup for her campaign by wresting the billionaire out of Obama's home town of Chicago, and better still, the brother of Obama's Campaign Finance Chair.

J.B. Pritzker announced he would head a new grassroots organization called Citizens for Hillary Clinton. Pritzker told reporters at the time, the new organization would go into states "where we haven't fully organized" and seek out campaign supporters as well as raise funds.

Apparently the Pritzkers will be sitting at the head table at the Inaugural Ball if either Democrat wins.

Read the article here.


 
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Perhaps Hillary hasn't "Jumped on this issue," because BIll Clinton and Robert Ruben, of Wall Street are the originators of "speculative investments" in the Financial Markets in the first place.

    Favorite    Flag as abusive Posted 02:55 PM on 03/05/2008

These anti-capitalists rants and posts make me nostalgic for my college years. But in the present day they seem wildly unfair and certainly do a disservice to the fine corporate and charitable work of Penny Pritzker and her family. Is this what happens when a successful woman enters public service? Apparently it's all about scorched earth campaigning -- trying to drive good people out of the process -- and not the truth. No wonder so many Americans are turned off by politics.

The fact is, Penny Pritzker left her position as chairman of the board of Superior Bank 14 YEARS AGO, and years before there were any questions about the work of its managers and auditors. The Pritzker family lost millions by investing in the bank. The roughly 1,400 bank customers who had more than $100,000 in deposits are substantially whole.

The activities of Superior Bank in the mid-90's have no bearing whatsoever on current mortgage and lending conditions affecting the US economy. This is old news being manipulated by people who have agendas. The Pritzker family has done more to help Chicago than any family I know. They shouldn't be driven out of politics by the shock and awe tactics of mean-spirited and mostly anonymous bloggers.

As a former investigative reporter in Chicago, I"d say these old stories were thinly reported and agenda-driven back in 2001 ¦ and carry even less weight in 2008.

    Favorite    Flag as abusive Posted 02:19 PM on 03/04/2008

I am not surprised - he is a politician- just like Hillary. Maybe now people will look at the two candidates side by side on the issues. The Hard Way for Hillary supporters www.politicalamnesia.blogspot.com

    Favorite    Flag as abusive Posted 07:25 AM on 02/29/2008

I'm disillusioned with both candidates that we have. On today's Democracy Now!, Jeremy Scahill did an illuminating and saddening/maddening piece on the reality of Obama and Clinton's position on Iraq troop withdrawl. Neither candidate has any intention of un-occupying Iraq and both candidates have no intentions of changing anything regarding the under construction 5000+-staffed embassy complex in bagdad. Both candidates take contributionsfrom the mercenary industry, and while they both talk of bringing some of the troops home, both candidates will be leaving 23,000 there, and using mercinaries like Blackwater extensively.

Sorry, folks. Its the same old song. Are you going to insist on dancing to it?

    Favorite    Flag as abusive Posted 11:41 PM on 02/28/2008

Before all you Hillary boosters start crowing too loudly, notice that She is being supported by the other half of the same criminal family--no high recommendation, that!

It is so strange that you all still feel compelled to support your candidate and tear away at each other. Are you all that blind, or small minded? 200+ posts here, 5,000 on the democratic debate, another 2,500 at the Clinton attack on Obama blog, and you all have accomplished exactly, what?

Nothing. Nothing.

You've traded reality tv for HuffPo and the blogosphere and convinced yourself you are making a difference, when all you are doing is pouring sand from one hand into the other and back again. Your candidates don't matter, and your opinions, even less. This is all a diversion. And you fall for it every time. Your government does not exist. Your Constitution is a memory, and your "rights" are just a joke to the real people who run this country, like the Pritzkers, Mellons, Rockefellers, Morgans and Stanleys, and all the rest you know by heart. You have lost your country, and your vote in November will not return it to you.

And you can get angry, skewer me with that rapier like wit and insight that has so impressed me on blogs like this one before, and tell me all you are doing; working the phones, walking the precincts, stuffing those envelopes, writing those congressmen and letters to the editor!

And I will still tell you that that is not enough. That you are putting your faith in the hands of people who can not be trusted, when you should be taking the future into your own hands and doing what it takes to restore this Country. And if you don't know what I mean, then there really is no hope.

http://www.kpfa.org/archives/index.php?arch=25047

    Favorite    Flag as abusive Posted 10:32 PM on 02/28/2008

sadly, you are so very right

    Favorite    Flag as abusive Posted 11:47 PM on 02/28/2008
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Not that I agree with you totally, yes we are a plutocracy by and large as are most capiltalist democratic countries and yes the transition away from this would bear great fruit in terms of personal freedom and a more human society. Other than revolution how does one take the future into their own hands. It would be impossible for John Doe to run for president the because it takes milions of dollars to educate voters as to who is John Doe.

In addition, the selection of leaders aside, the myriad of problems the beset the common man due to lack of empowerment since unions are by and large disabled who can take up the fight. CEO's earning 300-500 times the wage of the worker, an economic system that punishes poverty severely since cost of living is disproportionately higher due to debt, lack of education, lack of mobility, etc., Lets face it, we are a capitalistic society with a pittance of socialism to protect the lower classes. What is one to do? Is it Socialism, Communism.

It seems that we just have to elect who might give us the glimmer of a newer and better deal and if after taking office its more of the same but just a little better maybe that is the best we can hope for. I have a hunch however that somebody like Obama might surprise you.

    Favorite    Flag as abusive Posted 12:17 AM on 02/29/2008

If we don't know what you mean, there is no hope. While what you're saying is, there is no hope.

Thanks for sharing your sense of abject hopelessness with us. And you have accomplished what, exactly?

Nothing.

    Favorite    Flag as abusive Posted 02:43 AM on 02/29/2008

Were not a lying a cult member pretending on having a brain. You wouldn't know the truth if it smacked you aside the head. And Obama is thinking with your brain. Like you have any free will anymore.

    Favorite    Flag as abusive Posted 06:39 AM on 02/29/2008

excuse me...is that English?

    Favorite    Flag as abusive Posted 11:23 PM on 03/03/2008

And Hillary voted For an unnecessary war and still defends it. That sense of entitlement reaching out to Americans all over the world saying to them, "what, I can't hear you, I'm too busy" in the her most not Hillaryous fashion.

    Favorite    Flag as abusive Posted 08:59 PM on 02/28/2008

"Owned", as in past-tense. Never mind that Hillary's close economic advisor, Robert Rubin, runs Citicorp, the largest subprime loaner in the world.

    Favorite    Flag as abusive Posted 07:48 PM on 02/28/2008

From: Althouse web site:

It's amusing to hear Sen. Obama condemn lobbyists in his new TV ad..."We can tell the lobbyists that their days of setting the agenda are over....They have not funded my campaign, they will not run my White House...""Yet it is also startling to see how quickly Obama"s senatorship has been woven into the web of institutionalized influence-trading that afflicts official Washington.

Obama quickly established a political machine funded and run by a standard Belt way group of lobbyists, P.R. consultants, and hangers-on.

For the staff post of policy director he hired Karen Kornbluh, a senior aide to Robert Rubin when the latter, as head of the Treasury Department under Bill Clinton, was a chief advocate for NAFTA and other free-trade policies that decimated the nation"s manufacturing sector (and the organized labor wing of the Democratic Party).

Obama"s top contributors are corporate law and lobbying firms (Kirkland & Ellis and Skadden, Arps, where four attorneys are fund-raisers for Obama as well as donors), Wall Street financial houses (Goldman Sachs and JPMorgan Chase), and big Chicago interests (Henry Crown and Company, an investment firm that has stakes in industries ranging from telecommunications to defense).

Obama immediately established a "leadership PAC," a vehicle through which a member of Congress can contribute to other politicians" campaigns"and one that political reform groups generally view as a slush fund through which congressional leaders can evade campaign-finance rules while raising their own political profiles."



Obama is a con and a dirty Chicago politician. And you people have fallen for it. Hah, hah, hah. I just wish to God you would wake up before it is to late.

    Favorite    Flag as abusive Posted 11:35 PM on 02/28/2008

Everybody seem to be overlooking the key point: Obama has used initial contributions from his larger donors to organize a campaign that has raised record amounts from over a million small donors. What that means is no matter what the contributions from larger donors, he is not tied to their interests alone because he is not dependent on those kinds of contributors. He can make the choices that are in the interests of the broad cross-section of ordinary people"workers, students, parents"who have put their money in, many of whom have never done so before. They are now invested in their country"s democracy in a new way.

Get the whole picture.

If you"re actually interested in the truth rather than sound-bites and name calling, here"s the link to the Harper"s article from which above poster cut-and-pasted. Since it"s from written published material and taken without attribution, that"s clearly plagiarism. http://www.harpers.org/archive/2006/11/0081275

It"s also taken out of context; read the whole article for yourself (rather than just trolling for bits you can snatch and throw up on blogs like this) and you will see a much more balanced picture, although it isn"t perfect. The Center for Democracy doesn"t have any lobby activity listed for Kirkland & Ellis, for example, since 2003, and even then it was a modest amount. And here"s a link to several articles Karen Kornbluh wrote when associated with the New America Foundation. She founded and directed its Work and Family Program. She is best known for her work on flex time and the "Mommy tax". Her position in Rubin"s office was deputy chief of staff. That doesn"t make her an author of NAFTA.
http://newamerica.net/people/karen_kornbluh/recent_work

Go look for yourself at the breakdown of his campaign financing for the presidency by the Center for Responsive Politics http://www.opensecrets.org/pres08/summary.asp?id=N00009638&cycle=2008 and compare that with Clinton"s http://www.opensecrets.org/pres08/summary.asp?id=N00000019&cycle=2008 . Get informed. Make up your own mind.

    Favorite    Flag as abusive Posted 12:40 PM on 03/02/2008

So now that Obama is not the Messiah, and just a lowly 'ol lying sleezy politician, his supporters are saying "it's okay, he's forgiven, he's just like any other politician and has to do these things to get ahaed."

YOU ARE ALL HYPOCRITES.

You completely denigrate, smear, taunt and lambast Hillary Clinton for being a "sleezy politician" while Obama was supposively "above it all" ... and yet when he is found out to be what he really is - which is a SHAM - you say "oh, it's okay."

IGNORANT HYPOCRITES.

    Favorite    Flag as abusive Posted 06:46 PM on 02/28/2008

Tell you what when nearly a hundred years can go by and nothing is done about the personal income tax in this country, a non apportioned tax on personal income, completely illegal,then I can give Obama a break.

Also open this link and run it up to (fast forward) 1:13:14 and watch it till about 1:14:00 or longer and tell me GW Bush isn't a hypocrite amongst hypocrites. The crown jewel along with many others, watch for yourself

http://video.google.com/videoplay?docid=-1656880303867390173

You'll see him quoted as saying "the Constitution is just a goddamn piece of paper."

    Favorite    Flag as abusive Posted 09:09 PM on 02/28/2008

By the way Hillary messed things up with the help of her elitist crowd of arrogant hypocrites and husband. She's Hillaryous! Bwahahaha.

    Favorite    Flag as abusive Posted 09:12 PM on 02/28/2008
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Well, well another politician's campaign higher up is associated with something shady. My, oh my and here we thought Obama would walk on water. Folks, he's a politician! Politicians get to the top by selling their _ _ _ _ _ (you fill in the blanks) not because they are blessed with good luck! Hillary is a politician, McCain's a politician. They all got here by selling something to someone. Kind of sad isn't it?

    Favorite    Flag as abusive Posted 06:02 PM on 02/28/2008

Isn't it funny how so many people are so quick to latch onto something as proof that Obama has negatives.
Never mind whether not it's actual proof or an actual negative.

Obama has never said he walks on water.
It's as if some people want to punish him for running a good campaign and bringing out waves of supporters.

    Favorite    Flag as abusive Posted 06:14 PM on 02/28/2008

Absolutely right...these deniers will bring the wrath of the Almighty upon them for their perfidy.

    Favorite    Flag as abusive Posted 06:33 PM on 02/28/2008

If you are watching at all, you would know many negatives are coming to visit Obama soon through the msm.

    Favorite    Flag as abusive Posted 07:21 PM on 02/28/2008

Obama is dirty as they come. If the media had told the truth about him in the first place Obama would already be out of the race. Obama has not run a good campaign. With 100% positive press the media has bought the campaign for him.

And why isn't Obama king now?

    Favorite    Flag as abusive Posted 11:24 PM on 02/28/2008
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Sub-prime lenders are not all lying crooks. In fact if you look at it from the standpoint of someone who actually read their loan agreement, purchased a house that they could afford that would have been unable to purchase otherwise.

We shouldn't demonize an entire industry.

    Favorite    Flag as abusive Posted 05:18 PM on 02/28/2008

Actually lending is the industry. Subprime lending is a very useful portfolio strategy, especially after the new bankruptcy laws. Subprime lending charges higher rates because some of the portfolio will default. It's part of the lenders' expectations...of course, borrowers find the experience of defaulting rather traumatic.

    Favorite    Flag as abusive Posted 06:36 PM on 02/28/2008

Oh, the part about being evil crooks depends on your cultural perspective. Some cultures consider the idea of charging interest absolutely taboo. In fact, it was the money-changers at the Temple that finally pushed Jesus to go postal...

    Favorite    Flag as abusive Posted 06:38 PM on 02/28/2008

You have GOT to be kidding

    Favorite    Flag as abusive Posted 11:51 PM on 02/28/2008

I have said before, if Obama is the nominee then he goes into the general election with two states less than the republican nominee to begin with. Obama will automatically lose both Florida and Michigan because he has already deprived the voters in those primarys of their rights to have their ballots qualified and counted. He can not possibily win without those two states. They would vote for Clinton (they already have), but will not vote for Obama. At the beginning Obama said he could get Clintons votes but she could not get his votes. Florida and Michigan will prove just how wrong BO is on that point.

    Favorite    Flag as abusive Posted 04:55 PM on 02/28/2008

"he has already deprived the voters "

*he* has? Try the DNC, and the agreement signed by Hillary and the other candidates, and Hillary's own words about Florida and Michigan, and the party officials in those states who knew they wouldn't count but proceeded anyway.

Obama has offered to hold another election in Michigan and in Florida.

I say, they should be seated at the convention in Denver-- but instead of having votes for either candidate, just vote "present."

    Favorite    Flag as abusive Posted 05:03 PM on 02/28/2008

Vote "PRESENT"? Obama has already worn that vote thin. No, the people of Florida and Michigan have made their choice and the choice is Clinton. If the Dem Party does not want to honor their votes then let them lose the general election.

    Favorite    Flag as abusive Posted 05:08 PM on 02/28/2008
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There is little difference between Hillary and Barrack as far as being centrist politicians
except that Hillary is far closer to the MIC and there is some HOPE that Barrack might
put an end to BushCo's stupid, greedy and evil Crusade for Muslim Oil, sooner than her.

    Favorite    Flag as abusive Posted 04:48 PM on 02/28/2008

OBAMA IS THE MOST LIBERAL SENATOR IN THE SENATE. HE WILL NEVER BE PRESIDENT.

    Favorite    Flag as abusive Posted 11:07 PM on 02/28/2008

( evil Crusade for Muslim Oil)

Why would you say it like that? Do you believe Obama is a muslim?

    Favorite    Flag as abusive Posted 11:09 PM on 02/28/2008

The sound you hear is the thunder of the footsteps as Obama supporters circle the wagons. Like Fox viewers who thought three years into the war, Hussein STILL had a hand in 9-11, Obama supporters just don't want to hear this crap. You will not be able to convince them their deliverer has a negative.
I'm telling you folks as sure as the sun comes up in the morning, you're going to get your heart broken with this fella but go ahead and take the risk. You'll find out by mid summer when the vetting process is in full swing that your new crush who says all the right things to make your heart flutter leaves the toilet seat up just like the rest of them.

    Favorite    Flag as abusive Posted 04:09 PM on 02/28/2008

We found out earlier today that a Canadian report that a senior advisor to Obama told Canada not to worry about Obama's anti-NAFTA talk was, in fact, a false report. So the real question isn't whether we pull the wool over our eyes, but whether we jump to quick conclusions about the candidate we don't like. Because, yes, by mid summer you *will* hear a lot of crap about Obama-- and most of it will turn out not to be true. If Hillary's admirably loyal yet oddly vicious last-stand supporters can acknowledge that, for all his flaws, Obama is most likely the *Democrat* in November, maybe we can stand up for *our* guy together, like people who care about something more than just winning.

    Favorite    Flag as abusive Posted 04:50 PM on 02/28/2008

Indeed the reason I will Not vote for Obama is because I care much more about our nation and its well being. Yes there is a hell of a lot to consider besides just winning. Winning at all costs is not an option worth considering.

    Favorite    Flag as abusive Posted 05:03 PM on 02/28/2008

You are very funny and wise. People need to remember what happened to Jim Jones' converts...they were more than a little disappointed. :)

    Favorite    Flag as abusive Posted 07:24 PM on 02/28/2008

Along with Bank of America, Citicorp, Washington Mutual, Countrywide, mortgage brokers, real estate brokers.... or virtually any and every financial entity in America. So now Obama need to be canonized to run? Get a life!

    Favorite    Flag as abusive Posted 04:08 PM on 02/28/2008

THIS SHOULD BE THE HEADLINE

This is nothing. The man that owned and made billions of dollars at Ameriquest --the worst of the worse--- is the US Ambassador to Belgium. Dont lay this crap on the Democrats when this guy should be in jail and is being paid with taxpayer money after running one of the worst companies ever ever ever in the sub prime world.

    Favorite    Flag as abusive Posted 04:01 PM on 02/28/2008

Hear hear!

    Favorite    Flag as abusive Posted 06:27 PM on 02/28/2008

That's absolutely right. As long as there's someone worse, Obama is without blame! O ye Obama doubters, Repent, I say!

    Favorite    Flag as abusive Posted 06:47 PM on 02/28/2008
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