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This is rich (pun fully intended).  As diaried earlier, President Obama has nominated Penny Pritzker for Secretary of Commerce. Now this from MarketWatch:

The failure of  a relatively obscure Chicago’s Superior Bank in 2001 may resurface in the nomination of Penny Pritzker to be the next Commerce Secretary.

Superior, which made subprime mortgage loans, was owned by the Pritzker family.  Penny Pritzker served as chairwoman of the bank from 1991-1994.


The Pritzker family bought the failed savings and loan,  Lyons Savings and Loan, from the FDIC in 1988 and renamed it Superior. The bank was owned 50% by the Pritzker family and 50% by the Dworman family of New York. according to the the Office of Thrift Supervision.

Superior, through a subsidiary, Alliance Funding, was “one of the early pioneers of sub-subprime mortgages,” said banking expert Burt Ely in an interview with MarketWatch.

“Their advertisements said basically ‘bring us mortgages you can’t place anywhere,” Ely said.

And, according to the drill for these outfits, the bank collapsed in 2001.  The Pritzkers paid $460 million to defray the costs of the bank closure.  Nice of them, huh?  Not quite:
But Ely said that uninsured deposits were not made whole.

“The Pritzkers had the funds to do it, and they didn’t,” he said.

“It was a situation where the Pritzkers pulled a lot of money out [of the bank] in dividends and the bank was doing this really sleazy lending,” he said.

Obama cannot get away from the 1%ers.  That's his crew now.  Rich, Chicago-based.  This post wouldn't be payback ... or payforward by any chance?

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