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Meet Obama Finance Chair Penny Pritzker

October 6, 2008

This weekend, Obama has begun an initiative to dig up the ghost of Charles Keating and the Keating Five and its ties to McCain. Obama even trotted out one of the Keating Five to introduce the Boss in a strange move. While John Glenn’s involvement is well known as was McCain’s, which he acknowledged, what is more troubling is the role of the Pritzker family in the Obama campaign as Obama tries to distance himself from the subprime mess.

Penny Pritker is Obama’s national finance chair. The Pritzker’s owner Superior Bank FSB and its 2001 failure resulted in a $460 million dollar payment to federal regulators as Erick Erickson notes. Superior was involved in subrime lending and failed because of subprime lending. When Superior failed, it had 2.3 billion dollars in assets built upon loans to people with poor credit histories.  Such bad practices led to the fall of Superior and the fall of so many other lending institutions today.

It is inherently dangerous for Obama to put someone with such a track record as head of his finance committee and may be foreshadowing about they type of people he would reward in his administration.

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One comment

  1. According to a February 7, 2002 statement by FDIC Inspector General Gaston Gianni Jr., “the failure of Superior Bank was directly attributed to the Bank’s Board of Directors and executives ignoring sound risk management principles.” Ironically, the national finance chair of the Obama campaign, Penny Pritzker, sat on the board of directors of Superior Bank/Coast-to-Coast Financial/Alliance Funding (which engaged in predatory subprime mortgage lending and securitization of toxic mortgages) in the 1990s and less than 8 years before the collapse of the U.S. banking system. For more info about the role of the Obama campaign’s national finance chair in helping to create the current U.S. economic crisis, see the following blog link:

    http://www.bfeldman68.blogspot.com/



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