Obama Finance Chair Linked To Subprime Industry

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.

Comments

[SamanthaJaneSalem]

I've already said below that this looks like one point to score against Obama (his vote for Cheney's energy bill being another).

But as I've been reading about the subprime crisis over the past couple years, in Paul Krugman's column and elsewhere, my understanding was that subprime loans were the new, "sexy" way for financial companies to make money. And, in fact, because the economy under Bush experienced a jobless recovery from the 2001 recession, subprime loans were keeping the economy afloat-- for only so long.

So it was a widespread problem, like the junk bonds of fifteen or twenty years ago. That means we have to see if Obama's finance chair's company engaged in predatory practices. Subprime loans themselves were not immoral-- Americans were struggling in the Bush economy but they were encouraged to buy homes and either sell them for a quick profit or take a loan on the mortgage. As Krugman said, we were keeping our economy afloat by selling homes to one another. Eventually it caught up with us.

Instead of saying, "Well, that proves it-- Obama is slimy like the rest of them" I would say that good people and bad people got caught up in a system that was very risky and if you only skim over the surface details of the story, it appears to be worse than it probably is.

It's why I don't care about Clinton's tax returns and why I never paid attention to the whole cattle futures thing or Whitewater in the 1990s. If all you ever know about is the mud and don't get to the actual facts, it's just one big distraction.

[kimbari]

You. Are a gentleman and a scholar. :D

[hoodrat]

Thanks because since I first started watching the blogs, I have begun to wonder if maybe my ass went dyslexic or something. walked away from all political shit after Gore got robbed, but thought this was too important. Say what you mean - mean what you say is a pledge I choose to live by, so really been looking at Obama - to see if he would "blink" on any statements he made. But so far, other than the matching Senate fund issue, I haven't. So, from time to time, I'll look back, pull a brothers coat if you see something real, will ya?

[CraigMM]

Here's the thing, HRC can still win. Neither can get enough delegates on their own. If HRC wins TX, OH and PA she can have the poular vote. Even if Michigan is thrown out, Florida will likely be seated because they were all on the ballot and BO ran $1 million in ads there. 10 million people have voted for HRC and she could still win the poular vote and 8 of the 9 largest states. That counts for A LOT. HRC is definitely worth a second look.

[S1m0n]

"Here's the thing, HRC can still win."

She could (almost) but she won't.

[CraigMM]

See, the 8 years of endless spin for the right has good democrats saying that HRC has too many negatives. But these negatives were thrown out there by a group of people on the right who hate progressive ideas and hate the Clintons because Bill won in '92 and '96. Don't let those people tear down all of the good things that HRC has done and will do. If you think she is more qualified and has done better in the debates than support her. The right is going to hate whoever the nominee is. HRC can unify the party and the country. She has a record of successful bipartisan legislation to show this. Don't just vote for BO because he is "new and doesn't have a record". That is precisely why he should be held to the same scrutiny and questioning that HRC has gone through. The ability to inspire is important, but so is experience and so is the ability to fight for your people. It doesn't matter how nice the Democratic nominee is, the right will fight and HRC can hold her own and can also unify the country and will bring positive change to the country. A female POTUS is a termendous progressive goal. All I am saying is that, after all the smearing from the right and the hammering form the MSM and the blogosphere (Huffpo for sure), HRC deserves a second look. 10 million other people support her for very good reasons.

[Svenson]

I see ... so his brother in Clinton camp is to blame is it?


What a joke ... for a writer.

[AZDemocrat500]

It is refreshing to see some balanced reporting because I had started to think the Messiah was sorrounded by apostles. He is a politican just like any other.

[midtown]

Who is the whistleblower, Timothy J Anderson? He wasn't identified. If he blew the whistle there should be a public record. A google search shows this article is the only place where he shows up.

Further, Anderson attributes actions to Supreme, the Pritzkers, and large financial service orgs that could only have transpired in a limited capacity until the Glass-Steagall Act was repealed in late 1999. Supreme went belly-up in 2001, according to this article. So all this damage was done in 18 months?

[OhioPoBoy]

Why doesn't the headline say both Democratic campaigns are tied to the subprime market. The fact is that you can't touch a banker who isn't tied to subprime loans. As someone who is old enough to have paid 15.5% for his home mortgage, I am insulted by all the whiners who complain about 8 or 10% loans. Mortgages are often defaulted. Money costs money and sooner or later stupid lending practices like easy money going to unqualified buyers comes back to haunt you. Suck it up and pay your mortgage or rent!

[Jazz42]

(OhioPoBoy)
You are right on

[yeuxdisis]

No, OBamabots, I hate to disappoint all of you--- He is not a messiah and definitely not a saint--- He is neither a novelty nor change for the better--- He is a mere politician as all the rest.. with less experience and no past--- With inflated grandiose tendencies as all the rest... The kind of fella' you are saying: " No Credit--- No Problem!" in running Your Country.

[denver]

I dont think that is fair I admire Hillary but support Barcak and you cannot deny his savvy and political skill of course he is a politicain but you have to be to be President but give Barack the credit he deserves for running a brilliant race
I wish dems would stop beating up on dems They are both great democrats and only one can win.It looks like Barack.It is one thing to for the canidated to hit ecahother that is normal and natural in a competitive race but us voters no better it is just part of the race to win.Hillar­y will be behind Barack 100% when all is said and done I think we need to stop the hate does not do us anty good

[LindaLee99]

That's like saying, "give George W. Bush credit he deserves for running a brilliant race." Bush's campaign was handled, Rowe was brilliant. And Senator Obama's campaign is being run. Someone encouraged him to run, and is moving it along. That''s why the information in this post is important, who he has, is, and will surround himself is important to know.

[ornery]

Bill/Hill won't quit till the last dog dies.

They'll probably start a Bush v. Gore type of lawsuit to seat delegates--at least Bush waited until after the general election to pull crap like that.

They are all about perpetuating their personal control over the party. It's all about them Them THEM.

Country party principle be damned.

[inthecolour]

Yawn. Too petty. Move on.

[denver]

Biglover I share your beliefes,I have great admiration for the Clintons and their contributions to America and the democratic party lets not forget they taught the democratic party how to win again.But Hillary does have to many negatives because when you are in the fish bowl to long or the political process a long time your words get twisted and your views are turned up side down by the media.Bara­ck is fresh energetic and just plain good,in alot of ways i see alot of similarities in this race and the 92 race.I thinj that is why it has been hard for Hillary as well she is kind of running against what her husband ran for in 92.
Ted Kennedy ran a tough fight against Carter in 80 and can out the political hero in the senate and has had a great career with a lot of good legislation tied to his name.I think Hillary still has a big bright future in politics,she is to smart to good for there not to be

[Perdurabo]

When are people going to realize that ALL politicians are corrupt, regardless of party affiliation. Do you REALLY believe that a person can get into a prominent position, in national politics, without affiliation and lucrative backing from corporate interests?

Come on folks... get real.

[Researchguy66]

Obama is incapale of corruption. He is the power of Light. He descended to Earth to free us from the Clinton Demons.

[denver]

Are you on crack

[nazirmo]

http://cnews.canoe.ca/CNEWS/Canada/2008/02/27/4879789-cp.html

[denver]

Yeah this is Baracks time but for those of you still in diapers at the time.The ninites were great annd when Bill ran in 92 and 96 he has the same support that Barack is seeing with the youth and middle class that felt left out his rallies were huge huge in 92 he has a Chicago yes Chicago rally with ever 35,,000 people so get your fact straight and quit listening to fox news.You kneo the right his very good at dividing the country you better hope that the same fate is not going to happen to Barack,Bill tried to unite the country with excellent speeches and tones of untity and a new generations turn to lead.But the right is very powerful and if you think they are going to bow to Barack you are nery nieve and pretty deff to political reality

[yeuxdisis]

This should actually be called American Idol:Obama­.... It's a silly fad

[TheDebbieDee]

Maybe J B Pritzker is the mole that Obama has in the Clinton campaign?

[CraigMM]

One last history lesson for you BO supporters who were too young to remember, too lazy to learn it or not paying attention.­...Bill Clinton did not divide this country. The extreme right waing of the Republican party, who became the neocons in the run-up to the Iraq war drove a wedge between many groups of people by using a major news network (Foxnews if you didn't figure that out) to function as a spin room (which basically evolved into the white house spin machine spitting out talking points for Bush) and playing the fear card wherever necessary and smearing good people who disagreed with their narrow views of acceptable behavior. It is time to stop this distortion of the Clinton presidency. He was very good and the country thrived. It is also time to stop treating HRC like she is a Republican or a member of the Bush administration. Bill and HRC both deserve better, especially from people who call themselves Democrats.

[biglover]

I agree with you Craig and my decision to support Obama is simple and I believe I speak for a lot of dems. She has too many negatives, deservedly or not, and she does not have the ability to inspire the folks because she is perceived (mostly due to repuglican destructive politics)) as more of the same I also do not believe she could win handily over McCain whereas I firmly believe Obama can and WILL. I have a deep fondness for both Bill and Hillary.

[Researchguy66]

She doesn't have the ability to inspire because she is pure evil. She is the original succubus that lures all good men to their death and eternal torture. The voters of OH, TX and PA should have no say in the matter of it even offers the smallest opportunity of this demon to ascend to the presidency. Hillary needs to drop out NOW!

[SamanthaJaneSalem]

Below I was comparing the Obama of '08 to the Clinton of '92. I remember, people were hungry for something different and felt Washington was out of touch with the needs of the middle-class. He was the man from Hope. Bill was almost always upbeat and optimistic on the campaign trail. He ran a well-organized, highly focused campaign that stuck mainly to the issues. He was known as the best speaker the Democrats had produced since JFK.

Instead of copying the failed campaign tactics of Rudy Giuliani with his "firewall" in Florida, or blaming the media (never a good thing since they cover you), Hillary needs to copy the '92 Bill-- definitely not the '08 Bill!

The sad thing is, I spent the last eight years sticking up for Hillary and Bill even among Democrats who didn't like them-- especially Hillary-- and then she runs this depressing campaign and I feel like last year, when I praised Hillary for looking "Presidential" in the debates, calm, cool, collected, when I said she cared about children's rights and women's rights-- when I tried to be objective I was bound to be called a crypto-Republican cult-like worshipper of the messiah. Thanks a lot!

[OhioPoBoy]

This old geezer voted for Bill both times. He also paid 15.5% interest on his mortgage under Democrat Jimmy Carter when money wasn't cheap. Plenty of people smear those who don't agree with them. That is not just an exclusive problem with the right "waing" of the Republican party. Clinton did sign NAFTA. He did take the party to the right and "end welfare," an idea sold by smearing all recipients as "Cadillac Welfare Queens" by Ronald Reagan. If you had the same sense of history you would like others to have you might see that Bill Clinton was the founder of the DLC and his trick of "triangulation" caused the rise of rabid anti-Liberal sentiment in this country. Liberal became a dirty word because even the Democratic president mocked those sentiments. Bill and HRC are no more nor less imperfect than Barack Obama. I can say that and still call myself a Democrat!