The Wall Street Journal reports:
For the Pritzker family of Chicago, the 2001 collapse of subprime-mortgage lender Superior Bank was an embarrassing failure in a corner of their giant business empire.
Billionaire Penny Pritzker helped run Hinsdale, Ill.-based Superior, overseeing her family’s 50% ownership stake. She now serves as Barack Obama’s national campaign-finance chairwoman, which means her banking past could prove to be an embarrassment to her — and perhaps to the campaign.
Superior was seized in 2001 and later closed by federal regulators. Government investigators and consumer advocates have contended that Superior engaged in unsound financial activities and predatory lending practices. Ms. Pritzker, a longtime friend and supporter of Sen. Obama, served for a time as Superior’s chairman, and later sat on the board of its holding company.
Sen. Obama has long criticized predatory subprime mortgage lenders and urged strong actions against them. . .
The Obama campaign recently faced a controversy related to mortgage lending. A member of Sen. Obama’s vice-presidential selection committee resigned after a Wall Street Journal story said he received favorable treatment on personal loans from Countrywide Financial Corp., a major subprime lender. . .
Superior’s failure could still cost the federal deposit insurance fund tens of millions of dollars or more. And hundreds of people whose deposits exceeded federal insurance limits, such as Ms. Sweet, are still out millions of dollars, which will be reduced some by future Pritzker settlement payments.
(Emphasis mine.) (Via Instapundit.)
It’s starting to get hard to keep track of all of Obama’s corrupt friends.
Internet Scofflaw 