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Blind risk: The failure of Superior Bank

http://findarticles.com/p...03/is_200204/ai_n21313427

Just a few years ago it was an industry high-flier. Now Superior Bank FSB has become the costliest thrift failure in a decade. Superior's collapse was, indeed, a doozy, with enough subplots to justify its epic price tag. The privately held thrift had, at its peak, $2.3 billion in assets and 17 branches in the Chicago area, and it was a big national player in the subprime mortgage and auto lending arenas. Only a few years ago, it was hailed as an industry high-flier. Now, Superior's failure is expected to cost the Savings Association Insurance Fund (SAIF) $350 million, making it the costliest thrift bailout in a decade.



For all that, some of the harshest criticisms are saved for Superior's directors. The board was loaded with insiders, including a vice president of the Pritzker Family Foundation, the presidents of two Superior affiliate companies, and at least two company officers.



Superior's directors are presently defendants in one lawsuit, a class action brought on behalf of a group of uninsured depositors. In total, some 1,400 uninsured depositors collectively lost $65 million in the collapse. "This wasn't a risky investment deal. These were people who put their money in the bank, and were led to believe [by bank employees] that the money would be insured; says Clint Krislov, the Chicago attorney representing the plaintiffs.



Superior's ill-fated journey began in 1988, when the Pritzkers and Dworman paid $42.5 million for the failed Lyons Savings Bank, a $1.5 billion thrift in suburban Chicago. To facilitate their ownership, the Pritzkers and Dworman each created shell companies, which owned 50% each of the Nevada-based holding company, Coast to Coast Financial Corp., that owned the thrift.

Obama Campaign's Pritzker/Superior Bank S&L Scandal Link?

http://bfeldman68.blogspo...tzkersuperior-bank-s.html



Penny Pritzker is the National Finance Chair of 2008 Democratic Party presidential candidate Barack Obama's campaign. Yet the Obama campaign's national finance chair served as chairman of the Superior Bank from 1989 to 1994, before the savings and loan institution collapsed in July 2001, due to the Pritzker bank's involvement in financially reckless subprime mortgage lending.

here is the FDIC link

http://www.fdic.gov/bank/...dual/failed/superior.html

When Illinois State Senator Alice Palmer decided to retire in 1995, she hand-picked local left-winger Barack Obama as her successor. In order to introduce Obama to influential liberals in the district, she held a function at the home of Bill Ayers and Bernadine Dohrn. This was, really, the beginning of Obama's political career, and it linked him forever with Ayers and Dohrn, with whom, as his campaign has acknowledged, he continues to have a friendly relationship.
http://www.powerlineblog....hives2/2008/04/020358.php

In this video Ayers again states he is NOT SORRY FOR THE BOMBINGS! Obama and Ayers served together on boards, gave speeches together, their kids go to the same schools and Ayers backed Obama for his senate run.
http://www.foxnews.com/vi...1909a6e3508b&sMPlaylistID

Obama has a friend named Bill Ayers and Ayers is married to a fellow terrorist, Bernadine Dohrn.
http://obamawho.wordpress...008/04/11/obamas-friends/