Posted on 08/25/2011 7:42:41 AM PDT by Starman417
Barack Obama wants to crush an investigation that's getting too close to him and some really close friends:
Attorney General of N.Y. Is Said to Face Pressure on Bank Foreclosure Deal
Eric T. Schneiderman, the attorney general of New York, has come under increasing pressure from the Obama administration to drop his opposition to a wide-ranging state settlement with banks over dubious foreclosure practices, according to people briefed on discussions about the deal.In recent weeks, Shaun Donovan, the secretary of Housing and Urban Development, and high-level Justice Department officials have been waging an intensifying campaign to try to persuade the attorney general to support the settlement, said the people briefed on the talks.
But here's where it gets interesting:
Mr. Schneiderman and top prosecutors in some other states have objected to the proposed settlement with major banks, saying it would restrict their ability to investigate and prosecute wrongdoing in a variety of areas, including the bundling of loans in mortgage securities.
If allowed to be completed, this investigation would pull the scab off the grave wound inflicted on this country by Bill Clinton, Robert Rubin, and Andrew Cuomo with the assistance of Penny Pritzker and Obama's good friends at Goldman Sachs.
The involvement of Clinton, Rubin and Cuomo in creating the housing/financial crisis has been written about extensively in FA.
Penny Pritzker, not so much.
Pritzker is the financial genius who took a solvent bank and helped destroy it.
Chicago’s billionaire Pritzker family and their partners bought Lyons Savings for a quite reasonable $42.5 million, but were also given $645 million in tax credits. The kicker was that the buyers only had to come up with $1 million in cash, and got access to the $645 million, and all the bank’s deposits insured by the Federal Savings and Loan Insurance Corporation (FSLIC).The Pritzker family’s Superior Bank “started life with enormous tax benefits and a substantial amount of FSLIC-guaranteed assets under a FSLIC assistance agreement,” said financial consultant Bert Ely in a Oct. 16, 2001, statement before the U.S. Senate Committee on Banking, Housing and Urban Affairs.
Penny Pritzker is known as the "Queen of the Subprime Mortgage" and for good reason.
Ms. Pritzker served as Superior chairman until 1994. During that period, Superior “embarked on a business strategy of significant growth into subprime home mortgages,” which were then packaged into securities and sold to investors, according to a 2002 report by the Treasury Department’s Inspector General.
Subprime mortgages were the Pritzkers' junk bonds
“The [sub-prime] financial engineering that created the Wall Street meltdown was developed by the Pritzkers and Ernst and Young, working with Merrill Lynch to sell bonds securitized by sub-prime mortgages,” Timothy J. Anderson, a whistleblower on financial and bank fraud, told me in an interview.“The sub-prime mortgages,” Anderson said, “were provided to Merrill Lynch, by a nation-wide Pritzker origination system, using Superior as the cash cow, with many millions in FDIC insured deposits. Superior’s owners were to sub-prime lending, what Michael Milken was to junk bonds.”
The Pritzkers needed a vehicle to ride those mortgages:
Ely stated, “Superior’s trick, or business plan” under Penny Pritzker’s leadership was apparently “to concentrate on sub-prime lending, principally on home mortgages, but for a while in sub-prime auto lending, too.” In December 1992, the Pritzkers acquired Alliance Funding, a wholesale mortgage organization.
She championed subprime mortgages until Superior Bank was seized by regulators in 2001. She never admitted any wrongdoing though her family paid out $460 million to defray the cost of the bank collapse.
1400 families lost their life savings.
This is also a story about how the Pritzkers made enormous amounts of money while shafting thousands of Americans:
Wanting to avoid a lawsuit, the secretive Pritzkers quickly agreed to what the FDIC hailed in December as the biggest settlement they had ever negotiated. The Pritzkers would pay $100 million immediately, then $360 million over 15 years. But there were lots of little provisions in the agreement that benefit the Pritzkers. First, as former bank consultant and longtime thrift watchdog Tim Anderson notes, the $100 million doesn’t even quite pay back all of the unpaid loans made to the owners. The Pritzkers also pay no interest on the $360 million, and since it is paid over many years, the real cost to the Pritzkers may be only around $250 million. As of September 2002, according to FDIC figures, the insurance fund was still out $440 million after this settlement.But it gets even sweeter for the Pritzkers. The FDIC also agreed to pay the Pritzkers 25 percent of any claim won in a lawsuit against Ernst & Young. Since the FDIC is now suing for $548 million, the Pritzker share could be $137 million. On top of that, the agreement stated that the Pritzkers get half of any civil penalties from such a lawsuit (after certain agency expenses). The FDIC is asking for triple damages, or $1.64 billion; the Pritzker share could be over $800 million.
Even taking into account the “record” settlement they made with the FDIC, the Pritzkers could make more than $700 million in additional profit for running a financial institution into the ground. They had already profited handsomely, sharing in the more than $200 million in dividends to the owners in the ’90s. They accomplished all this with an investment of about $21 million for each partner—though the Pritzkers had also already benefited from $645 million in tax credits.
via Karl
The Pritzkers made vast fortunes on subprime mortgages and raised boatloads of cash for Obama, and he has guarded their interests.
(Excerpt) Read more at floppingaces.net...
Just a feeling.
This needs to be thoroughly investigated. The Federal government has no business in pressuring a State AG to back off. If the President is in fact pressuring a State AG, he’s clearly overstepped his bounds. Not that there’s anyone who will do anything about it.
The list, ping
Let me know if you would like to be on or off the ping list
OBAMA IMPICATED IN HOUSING ECONOMIC CRISIS
Watch the video linked at the above page.
And I also believe Obama was one of the lawyers who lobbied the Clinton administration to get more deeply committted to the Carter-created CRA back in the 90's. At Pritzker's request? Wouldn't doubt it.
Seems to me that if HUD at the federal level is going to have dirt dug up by the NY State AG, then the former head of HUD (Cuomo) would be one of the ones who would be most negatively affected by his own AG's investigation.
ping
Even the murders of policemen mean nothing to them -- especially if the murderer is thought to be one of their own!.
Justice Department: 'Zip it' on Ayers probe
"The Obama Justice Department instructed San Francisco police officials not to comment after top law enforcement officers there signed a letter accusing Weathermen radical Bill Ayers and his wife, Bernardine Dohrn, of being directly behind the 1970 bombing of San Francisco's police station that killed one sergeant and wounded nine others."
bflr
Has anyone heard any outrage and/or demands coming out of Congress for investigations and impeachment? Silence so far?
The statute of limitations on these crimes is five years. It is almost over and not one person has been jailed for the fraud that brought our economy to it’s knees.
Outrageous. We jailed Ken Lay and his fraud pales in comparison to the mortgage mess. However, Ken Lay and his merry men were a small group compared to the banksters, politicians, and marxists behind the scenes of the mortgage debacle.
An easy place to start would be Franklin Raines and Jamie Gorelick. They cooked the books at Freddie/Fannie in order to obtain huge bonuses just months before the taxpayers at the losses. Research them if you are interested and ask your congresscritter why there has been no real investigation.
That should read - the taxpayers ate the losses
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