As Americans Struggle To Meet Mortgage Payments, Will Obama Acknowledge The Sweetheart Deals And Subprime Ties In His Campaign?
______________________________________________________________________
Jim Johnson, A Former CEO Of Fannie Mae And Top Obama Campaign Adviser, Received Special Loans From Countrywide:
Jim Johnson, A Former CEO Of Fannie Mae Chosen To Lead Obama's Vice Presidential Search Committee, Received Special Loans From Countrywide Financial CEO Angelo Mozilo. "Countrywide Financial Corp. makes mortgage loans through a vast network of offices, brokers and call centers. But a few customers have gotten their loans a special way: through Countrywide Chief Executive Angelo Mozilo. These borrowers, known internally as 'friends of Angelo' or FoA, include two former CEOs of Fannie Mae, the biggest buyer of Countrywide's mortgages, say people familiar with the matter. One was James Johnson, a longtime Democratic Party power and an adviser to Sen. Barack Obama's campaign, who this past week was named to a panel that is vetting running-mate possibilities for the presumed nominee." (Glenn R. Simpson and James R. Hagerty, "Countrywide Friends Got Good Loans," The Wall Street Journal, 6/7/08)
While CEO Of Fannie Mae, Johnson And Mozilo Worked Closely And Maintained A "Close Friendship." "From 1991 to 1998, Mr. Johnson served as CEO of the Federal National Mortgage Association, also known as Fannie Mae, which worked closely with Countrywide, one of the nation's leading lenders and loan servicing companies. In 1996, Mr. Johnson named Mr. Mozilo as chairman of Fannie Mae's national advisory council. A 1999 article in the American Banker said the two men had a 'close friendship.'" (Josh Gerstein, "Top Talent Scout For Obama Tied To Subprime Lender," The New York Sun, 6/9/08)
"Property Records Show Mr. Johnson Has Received More Than $7 Million In Loans From Countrywide Since 1998, The First Coming In The Waning Days Of His Fannie Mae Tenure." (Glenn R. Simpson and James R. Hagerty, "Countrywide Friends Got Good Loans," The Wall Street Journal, 6/7/08)
At Least Two Of The Mortgages Were At Rates "Below Market Averages." "The Journal said at least two of the mortgages, among a series of loans made available to people Countrywide officials called 'friends of Angelo,' were at rates below market averages, though it is difficult to predict a market rate without access to nonpublic information about a borrower's credit history and other factors that can reduce interest charges on a loan." (Josh Gerstein, "Top Talent Scout For Obama Tied To Subprime Lender," The New York Sun, 6/9/08)
As Recently As 2003, Johnson Has Praised Mozilo's Leadership Of Fannie Mae, Calling It "Remarkably Impressive." "Since leaving Fannie Mae, Mr. Johnson has lavished praise on Mr. Mozilo's performance, calling it 'remarkably impressive ' in a 2003 interview with BusinessWeek. 'By strengthening servicing in good times, Countrywide has done a brilliant job of insulating itself for the down cycle,' Mr. Johnson told Fortune in 2003." (Josh Gerstein, "Top Talent Scout For Obama Tied To Subprime Lender," The New York Sun, 6/9/08)
NOTE: "In Recent Months, The Job Has Been Looking Less Than Brilliant, As Countrywide Reported Billions In Losses, Much Of It From So-Called Subprime Loans Made To Borrowers Unqualified For Typical Loans." (Josh Gerstein, "Top Talent Scout For Obama Tied To Subprime Lender," The New York Sun, 6/9/08)
NOTE: Johnson Is Also A Bundler For Obama's Presidential Campaign And Has Committed To Raising $100,000 To $200,000. (Obama For America Website,
FLASHBACK: Obama's Campaign Attacked Sen. Clinton's Campaign For Its Countrywide Ties:
Obama Senior Campaign Strategist David Axelrod Criticized Sen. Clinton For Employing Mark Penn, Whose Firm Once Represented Countrywide. MSNBC's Keith Olbermann: "Senator Clinton not stopping to hear a reporter's question about Mark Penn, let alone answer it, leading Penn's counterpart in the Obama campaign to fill in the vacuum about Penn's non-departure departure this morning on MSNBC." David Axelrod: "She's stuck him with him through the revelation that his firm was working fro Blackwater and working for Countrywide, and, you know, so, it`s kind of stunning. Remember that the embassy said they weren't sure whether he was there as a representative of his firm or a representative of Senator Clinton. I mean, I think there are issues associated with this. I'm not - you can use the word hypocrisy, but there are certainly questions that arise from this." (MSNBC's "Countdown," 4/7/08)
Watch David Axelrod Here
Axelrod: "Penn's Business Dealings Have Always Been An Issue." "Last week, she turned her fire on a huge proposed pay-out to the founder of Countrywide Financial, the mortgage company at the centre of the storm. Yet two months ago, Countrywide turned for temporary help with its tattered image to the public relations firm Burson-Marsteller, whose president is Mr Penn. ... Mrs Clinton's criticism of lenders also raised fresh questions over the role of Mr Penn. Mr Obama's chief strategist, David Axelrod, said: 'Penn's business dealings have always been an issue. The Clinton campaign is clearly not too worried who its chief strat-egist does business with.' Burson-Marstell er said it was no longer working with Countrywide and that Mr Penn did not have a hands-on role with many of its 2,000 clients." (Philip Sherwell, "Clintons' Pain And Gain In Housing Crisis," The Sunday Telegraph, 1/20/08)
The Obama Campaign Criticized Sen. Clinton For Accepting Contributions From Representatives Of Countrywide. "Obama aides also said Clinton is in no position to stiffen oversight after taking contributions from mortgage industry lobbyists, including funds from representatives of Countrywide, which has been at the center of the mortgage meltdown. 'If we're really going to crack down on the practices that caused the credit and housing crises, we're going to need a leader who doesn't owe these industries any favors,' campaign manager David Plouffe said." (Anne E. Kornblut, "Clinton Unveils Plan To Ease Housing Crisis," The Washington Post, 3/25/08)
Penny Pritzker, Obama's National Finance Chair And Campaign Bundler, Owned A Failed Bank That Specialized In Subprime Lending:
Penny Pritzker Is The National Finance Chairman For Barack Obama. "And Penny Pritzker, a Chicago philanthropist, serves as Mr. Obama's national finance chairman even as her brother, Jay Robert, holds fund-raisers across town for Mrs. Clinton." (Jodi Kantor, "In Democratic Families, Politics Makes For Estranged Bedfellows," The New York Times, 2/4/08)
Pritzker Is A Bundler For Obama's Presidential Campaign And Has Committed To Raising Over $200,000. (Obama For America Website,
The Pritzker Family Co-Owned Superior Bank FSB. "Ms. Pritzker, who declined to be interviewed, has confronted other challenges, including the 2001 collapse of Superior Bank FSB, which the Pritzker family co-owned, resulting in a $460-million payment to federal regulators, and a rift over family assets that settled out of court in 2005. She oversees the Pritzker family's non-hotel real estate interests and chairs its TransUnion LLC credit bureau." (Steven R. Strahler, "Penny Pritzker," Chicago Crain's Business, 5/7/07)
"Penny Pritzker Served As Head Of The Board From 1991-94 And Is A Director Of The Bank's Parent Holding Company, Coast To Coast Financial Corp." (Melissa Allison and William Neikirk, "Bank Closes As Pritzkers Back Out Of Bailout Plan," Chicago Tribune, 7/28/01)
"Superior Bank Specialized In 'Sub-Prime Lending,' Which Is Making Loans To Underserved Borrowers, Who Are Often Poor Minorities." (Kathleen Day, "Regulators Probe Bank Loan To Co-Owner," The Washington Post, 7/31/01)
Superior Bank Was A "Subprime Lender That Made Risky Mortgage And Auto Loans To People With Poor Credit Histories." "Auditors Ernst & Young...agreed to pay the FDIC $40 million in restitution in connection with the collapse of the bank, a subprime lender that made risky mortgage and auto loans to people with poor credit histories. It had about $2 billion in assets when it was shuttered." (Kathy Bergen, "Millions For Pritzkers In Settlement," Chicago Tribune, 12/28/04)
In July 2001, Superior Bank Failed. "While customers of the failed Superior Bank FSB lined up to ask questions and withdraw money ... fingerpointing began among the bank's investors and regulators over why it failed. The multibillionaire Pritzker family, which had owned half of Oakbrook Terrace-based Superior, says a plan announced in May to salvage the bank collapsed after the family learned it would cost significantly more than members expected, and more than they could even predict. Sources close to the Pritzkers said the family offered other deals to regulators, but members were told to stick to the first plan." (Melissa Allison, "Blame Flies Over Demise Of Superior," Chicago Tribune, 7/31/01)
Federal Regulators Closed Superior Bank Due To "Poor Oversight By Its Board" Among Others Reasons. "Regulators, who say they requested and never received a formal revised plan, closed the institution late ... saying it was critically undercapitalized, suffering from loan losses, accounting problems and poor oversight by its board." (Melissa Allison, "Blame Flies Over Demise Of Superior," Chicago Tribune, 7/31/01)
After Superior Bank Failed, The Federal Deposit Insurance Corp. Took Control Of The Bank. "The bank reopened...as Superior Federal FSB under the control of the Federal Deposit Insurance Corp., which is looking to sell the bank." (Melissa Allison, "Blame Flies Over Demise Of Superior," Chicago Tribune, 7/31/01)
"Superior Bank's Failure Cost The FDIC About $700 Million, Making It Then One Of The Largest Federally Insured Financial Institutions To Fail In A Decade." ("Pritzkers To Get Millions From Superior Bank Failure Settlement," The Associated Press, 12/28/04)
In 2001, The Pritzkers Agreed To A $460 Million Settlement As Part Of The Bank's Failure, Which Cleared Them From Action By The Federal Government. "The Pritzkers agreed to a $460 million voluntary settlement in 2001 that barred government action against the owners. The owners admitted no liability. In exchange, the family would receive 25 percent of anything the FDIC recovered from Ernst & Young, and 50 percent of any punitive damages." ("Pritzkers To Get Millions From Superior Bank Failure Settlement," The Associated Press, 12/28/04)
In 2004, The Pritzker Family Received Millions In A Settlement With Federal Regulators Even Though 1,400 Uninsured Depositors Lost $24.7 Million. "Chicago's Pritzker family, which co-owned a controversial bank that failed three years ago amid allegations of mismanagement, stands to reap millions of dollars through a highly unusual settlement crafted with federal regulators. The payment is being directed to one of Chicago's wealthiest families even though some 1,400 underinsured depositors have yet to recover the $24.7 million of losses they sustained in the collapse of Superior Bank FSB." (Kathy Bergen, "Millions For Pritzkers In Settlement," Chicago Tribune, 12/28/04)
"Critics Said Some Of Superior's 1,400 Uninsured Depositors Should Receive Money Before It Is Distributed To Any Other Parties." ("Pritzkers To Get Millions From Superior Bank Failure Settlement," The Associated Press, 12/28/04)
And Obama Received A Sweetheart Real Estate Deal From A Millionaire Friend, Who Is Now A Convicted Criminal:
Obama's Former Friend And Fundraiser, Tony Rezko, Was Convicted On 16 Counts Of Fraud, Aiding And Abetting Bribery And Money Laundering. "An old friend and fund-raiser of US Democratic presidential hopeful Barack Obama was found guilty Wednesday of using his political clout to demand kickbacks and win government contracts. Antoin 'Tony' Rezko was convicted 12 counts of fraud, two of aiding and abetting bribery and two of money laundering in a case which has dogged Obama during his quest to secure the party's presidential nomination." (Mira Oberman, "Obama Friend, Fundraiser Found Guilty Of Fraud, Bribery," Agence France Presse, 6/5/08)
Obama Paid $300,000 Less Than The Asking Price For His Mansion, While Rezko's Wife Paid Full Price For A Vacant Lot Next Door On The Very Same Day. "Two years ago, Obama bought a mansion on the South Side, in the Kenwood neighborhood, from a doctor. On the same day, [Antoin 'Tony'] Rezko's wife, Rita Rezko, bought the vacant lot next door from the same seller. The doctor had listed the properties for sale together. He sold the house to Obama for $300,000 below the asking price. The doctor got his asking price on the lot from Rezko's wife." (Tim Novak, "Obama And His Rezko Ties," Chicago Sun-Times, 4/23/07)
The Seller Of Obama's Home "Wanted To Sell Both Properties At The Same Time." "On the same day Obama closed on his house, Rezko's wife bought the adjacent empty lot, meeting the condition of the seller who wanted to sell both properties at the same time." (Brian Ross and Rhonda Schwartz, "The Rezko Connection," ABC News' "The Blotter" Blog,
Obama Later Purchased A Portion Of Rezko's Land For $104,500; It Was Valued At $40,500. "Later, the Obamas bought a 10-foot-by-150-foot piece of the lot for $104,500. An appraisal put the value of the strip at $40,500, a spokesman said, but Obama considered it fair to pay one-sixth of the original price for one-sixth of the lot." (Peter Slevin, "Obama Says He Regrets Land Deal With Fundraiser," The Washington Post, 12/17/06)
PDF Format
No comments:
Post a Comment