Interesting But Typical

Rich Libs Screw The Poor

Hey folks,

Then they tell them they are here to help them. {Laughing} VERY interesting piece in UAS Today this morning. Campaign advisers tied to lending crisis By Ken Dilanian, USA TODAY

WASHINGTON — On the campaign trail, Democrats Hillary Rodham Clinton and Barack Obama have proposed cracking down on the predatory lending that they say helped fuel the foreclosure crisis.

To the poor and down-trodden, we are here to help you. We will go after big business that makes billions of dollars of profits at YOUR expense. They just forget to tell you THEY make or have made millions of dollars working FOR these big businesses, WHILE they WERE screwing you. Kind of like the fact Hillary forgets she was on the Wal-Mart Board. But this is even better.

Both presidential candidates, however, rely on close advisers who had oversight roles at financial institutions that went bust because of subprime loans.

{Laughing}

Clinton's campaign manager, Maggie Williams, earned at least $175,000 serving from 2000-07 on the board of Long Island-based Delta Financial, which filed for bankruptcy last year after a history of high-cost loans to low-income borrowers, according to public records.

She admits a little bit later that she KNEW it was wrong and did it ANYWAY. She said this.

"I joined the board because I ... understood that the subprime option, for all its challenges, was the only chance for many people to own a home," Williams said.

So she knew it was sleazy. She knew they were giving loans to people that could not pay for them. She KNEW that this was a bad deal. But yet, she did it anyway. This can also be seen as another typical Lib concept. Quick fix now, screw tomorrow.

Obama's national finance chairwoman, Penny Pritzker, was chairwoman of the board of a Chicago-area bank in 1993 when it adopted a subprime business strategy that regulators say ultimately led it to collapse in 2001.

Superior's board and managers "ignored sound risk-management principles and failed to adequately oversee Superior's operations," the Federal Deposit Insurance Corporation's (FDIC) Inspector General concluded in 2002.

"Superior was effectively facilitating very sleazy lending," said Bert Ely, a Washington, D.C., banking consultant who testified before Congress on the Superior failure.

"Delta was one of the bad guys," said Irv Ackelsberg, a legal aid lawyer in Philadelphia who represented subprime borrowers. A lawyer for Delta did not return calls.

Of course Clinton sees no problem with this.

Clinton told USA TODAY, "We all have friends, associates and staff members who have private sector involvement … I don't see any connection at all between her prior employment and what I'm saying" about the loan debacle.

Get this. Obama's adviser? Is SHE down for the struggle? Does she know what it's like to be a poor person held down by the Rich White People?

Superior, co-owned by Pritzker family trusts, began focusing on subprime loans in 1993, according to the FDIC Inspector General's report. At the time, Pritzker was the board's chair. She left the board in 1994 and continued as a director of the bank's holding company. In 2002, the Pritzkers agreed to pay, through trusts, $460 million in a settlement with the government relieving them of liability.

"I regret that Superior Bank failed," Pritzker told USA TODAY. "My family voluntarily agreed to pay the FDIC $460 million … without litigation or any allegation by federal regulators of wrongdoing. I am proud of how my family responded to this situation."

Her family agreed to pay $460 million? Her FAMILY. That means this is HER money. Excuse me? Is it not one of the talking points of new liberalism that says big business has no business making outrageous profits at the expense of the little people. That they should have their profits taken from them and used to help the poor? Here are two examples of those that CLAIM this mantle and are DOING the very same thing. Even worse, they are WILLINGLY screwing the poor by feeding their dreams and hopes, then crushing them later, just to make a buck, or out of sheer ignorance. I'm not sure which is worse.

Pritzker, a key player in Obama's fundraising network since his 2004 Senate run, has helped him raise more than $190 million for the presidential race.

In a statement, the Obama campaign noted that Pritzker was not accused of wrongdoing, and said: "Sen. 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."

Uh, YEAH. But the problem is Obama, your adviser WAS the corporation putting their interests ahead of homeowners. I know you really are not that stupid. Just a Liberal. As for Delta, Clinton's adviser, they got caught, yet never changed what they were doing. Well that fits the Clintons. {Laughing} According to this article.

Williams, Clinton's chief of staff when she was first lady, went into public relations after she left the White House in the 1997. In April 2000, she joined the Delta board.

In 1999, Delta paid $12 million to settle predatory lending allegations with New York state and the U.S. Justice Department, court records show. Consumer advocates say it continued to peddle high-interest loans. "Their practices never changed," said Matthew Lee of Inner City Press, a New York watchdog group. "They continued to compensate brokers for making overly expensive loans."

In 2006, Delta originated $4 billion in loans and earned a profit of nearly $30 million on revenue of $467 million, according to securities records. The average interest rate ranged from 10% to 12%, compared with a typical mortgage rate of 6%, federal bank records show.

In 2002, the Pennsylvania Human Relations Commission levied a $910,000 fine against a brokerage firm it found had been selling exploitative loans, some through Delta, in predominantly black Philadelphia neighborhoods. Four of the Delta loans had originated while Williams was on the board.

But they are going to stop these predatory leading practices. Trust them. They have top advisers working close with them to stop this. {Sigh}

Superior started in 1988 when the Pritzkers and a partner purchased a failed savings and loan from the government. They received "cash, tax incentives and promissory notes" worth $645 million, according to federal documents reported by Crain's Chicago Business.

In 2000 letter, the National Community Reinvestment Coalition, a watchdog group, raised concerns with federal bank regulators about certain subprime lenders, including Superior. The letter also raised concerns the bank may have been targeting minorities with unfavorable loans, noting that Superior made 16% of its mostly subprime loans to African-Americans in 1998, compared to a national average of 2.5%, according to federal data.

In 2001, regulators concluded Superior had undervalued its assets. The Pritzkers opted not to put up more capital, a decision that led to the bank's collapse.

"Superior Bank suffered as a result of its former high-risk business strategy, which was focused on the generation of significant volumes of subprime mortgage and automobile loans for securitization and sale in the secondary market," the Office of Thrift Supervision later said.

Government investigators found that the owners had been paid around $200 million in dividends. The bank's 1,400 uninsured depositors, who had accounts larger than the $100,000 backed by the federal government, will have lost $10 million when the settlement is paid, said their lawyer, Clint Krislov. He argues that because of the dividends and tax benefits, the Pritzkers made millions. Pritzker lawyer Kevin Poorman disputes that: "We lost a large amount of money."

It's all relative folks. People are losing EVERYTHING. Their homes and ALL the money they have. When some RICH family says they are losing large sums of money, that is true. But, they are not losing their HOMES, and will not be working two jobs to try to survive. Yes, $460 million million dollars is an unbelievable amount of money. Not to many people can even wrap their mind around just how MUCH money that really is, but when you have MILLIONS left? Sorry, you are not going to find to many people losing their homes to have sympathy for you. But remember, they are here to help you, you poor people you.
Peter

Sources :
USA Today - Campaign advisers tied to lending crisis