If there is one thing Obama has been very good at, it’s been covering his tracks. This time, I believe I have made a link that is undeniable to his knowledge and possible participation in the real estate dealings and the corruption in Chicago. His links to not so savory individuals and friends have supported almost every attempt for political office he has ever made. It is amazing how someone who came from nowhere has risen to the position of power in such a short time. He stands to lose much, if Tony Rezko actually tells all he knows as his Federal sentence is about to be imposed. Possibly he is playing “lets make a deal” in exchange for bringing down the house on Chicago real estate ventures at public expense. Everywhere you turn, the major players are tied directly to Sen. Obama.

First, let’s start with the Superior Bank in Chicago. That bank failed directly under the control of Penny Pritzker. She is Obama’s Campaign Finance Chairman and has been instrumental in raising millions for his campaign. The regulators closed Superior Bank in 2001 because of a vast number of sub-prime mortgage loans. She took over a failed savings and loan in 1988 and it was renamed Superior Bank. 

During the years of that Obama was actively in Chicago as a community organizer, one interesting person comes into the picture. Stanley Kurts reports this in his N.Y. Post article:

ONE key pioneer of ACORN’s subprime-loan shakedown racket was Madeline Talbott – an activist with extensive ties to Barack Obama. She was also in on the ground floor of the disastrous turn in Fannie Mae’s mortgage policies.

Long the director of Chicago ACORN, Talbott is a specialist in “direct action” – organizers’ term for their militant tactics of intimidation and disruption. Perhaps her most famous stunt was leading a group of ACORN protesters breaking into a meeting of the Chicago City Council to push for a “living wage” law, shouting in defiance as she was arrested for mob action and disorderly conduct. But her real legacy may be her drive to push banks into making risky mortgage loans.

In February 1990, Illinois regulators held what was believed to be the first-ever state hearing to consider blocking a thrift merger for lack of compliance with CRA. The challenge was filed by ACORN, led by Talbott. Officials of Bell Federal Savings and Loan Association, her target, complained that ACORN pressure was undermining its ability to meet strict financial requirements it was obligated to uphold and protested being boxed into an “affirmative-action lending policy.” The following years saw Talbott featured in dozens of news stories about pressuring banks into higher-risk minority loans.

IN April 1992, Talbott filed an other precedent-setting com plaint using the “community support requirements” of the 1989 savings-and-loan bailout, this time against Avondale Federal Bank for Savings. Within a month, Chicago ACORN had organized its first “bank fair” at Malcolm X College and found 16 Chicago-area financial institutions willing to participate.

Two months later, aided by ACORN organizer Sandra Maxwell, Talbott announced plans to conduct demonstrations in the lobbies of area banks that refused to attend an ACORN-sponsored national bank “summit” in New York. She insisted that banks show a commitment to minority lending by lowering their standards on downpayments and underwriting – for example, by overlooking bad credit histories.

By September 1992, The Chicago Tribune was describing Talbott’s program as “affirma- tive-action lending” and ACORN was issuing fact sheets bragging about relaxations of credit standards that it had won on behalf of minorities.

And Talbott continued her effort to, as she put it, drag banks “kicking and screaming” into high-risk loans. A September 1993 story in The Chicago Sun-Times presents her as the leader of an initiative in which five area financial institutions (including two of her former targets, now plainly cowed – Bell Federal Savings and Avondale Federal Savings) were “participating in a $55 million national pilot program with affordable-housing group ACORN to make mortgages for low- and moderate-income people with troubled credit histories.”

What made this program different from others, the paper added, was the participation of Fannie Mae – which had agreed to buy up the loans. “If this pilot program works,” crowed Talbott, “it will send a message to the lending community that it’s OK to make these kind of loans.” 

This was exactly the time frame Superior Bank was very active in the sub-prime lending and no doubt, Obama knew exactly who Penny Pritzker was and her involvement in the ACORN sponsored lending practices. Another direct link early on to Obama is with another foundation that Pritzker in involved in. Pritzker is very much involved in the reform of Chicago’s public education system. Currently she is vice chair of the Chicago Public Education Fund, the successor organization to the Chicago Annenberg Challenge, which is the same Board Sen. Obama served with William Ayers.

Obama no doubt needed the financial backing of the Pritzker’s. They are the owners of the Hyatt Hotel chain and Obama had inside connections.  David Mendell recalled in his 2007 book Obama: From Promise To Power:

“Obama was confident that he was destined for more than a day job running a foundation or practicing law or languishing in the minority party in the Illinois senate…He invited a group of African-American professionals to the house of Marty Nesbitt, who had served as finance chairman of his congressional campaign. Nesbitt is…vice-president of the Pritzker Realty Group, part of the Pritzker family empire…Nesbitt arranged a weekend gathering to help Obama reach inside the deepest pockets he knew—those of the Pritzker family…

“…Nesbitt knew that if Obama could sell himself to Penny Pritzker, her support would not only reap huge immediate financial dividends but also be a crucial step in the foundation of a fund-raising network.

“So in late summer 2002, Obama, Michelle [Robinson-Obama] and their two daughters drove to Penny Pritzker’s weekend cottage along the lakefront in Michigan about forty-five minutes from Chicago…”

Also notice this report from WNBC in New York:

On Feb. 10, 2007, Senator Barack Obama launched his bid for the White House in Springfield, setting himself on a course that has become one for the history books. But Obama might not have made it even to the Old State Capitol Building that frigid day if not for a private meeting he had with friends and advisers in late 2002 as he was mulling a run for the U.S. Senate. In a South Side high-rise overlooking the lake, the junior state senator vetted his lofty political ambitions with a group of Chicago’s African American business elite that included Frank M. Clark Jr., Valerie B. Jarrett, Quintin E. Primo III, James Reynolds Jr., and John W. Rogers Jr.

Remember the name Quintin E. Primo III, as he is CEO of Capri Capital in Chicago. Capri Capital will reemerge later in this article as they have direct ties to Obama, Pritzker, and also direct ties to Rezko.

Also during the time frame that Fannie Mae and Freddie Mac were buying sub-prime mortgages, Franklin Raines was CEO of this institution from 1998- 2004. It was during this time, Superior Bank was in real trouble and under scrutiny from regulators. Pritzker assured regulators there was nothing wrong, and no doubt, she had to have known Franklin Raines. Her bank was using Fannie Mae funds since the largest book of their business was in sub-prime lending. Finally, in December 2004, Mr. Raines was forced to resign because the Office of Federal Housing Enterprise Oversight (OFHEO), the regulating body of Fannie Mae, of abetting widespread accounting errors, which included the shifting of losses so senior executives, such as himself, could earn large bonuses.

Another interesting connection to Pritzker is from the Chicago Community Loan Fund published in 2006:

 Bank is financing partner
CCLf had the resources to make a $1 million loan for the first time in its history in 2005, thanks in large part to a $3 million loan pool investment from Charter One Bank. Charter One’s investment in CCLF was part of a record-setting infusion of new investment capital in 2005.

In fact, CCLF’s partnership with Charter One and the Historic Pacesetter Limited Partnership is now multi-faceted: the bank plans to provide a portion of the financing for the project’s construction.

Then we take a look at Sen. Obama’s request for earmark requests for 2005 and we find a very interesting request:

Obama Requested $2.5 Million (And An Additional $ 5 Million Over Two Years) For A Pacesetter Redevelopment Program In The Village Of Riverdale.  I2 2005, Obama requested $2.5 million for the Village of Riverdale and their Pacesetter Redevelopment Program.  The redevelopment of the Pacesetter neighborhood is essential to the successful industrial development in Riverdale. The Pacesetter neighborhood is adjacent to Riverdale’s industrial redevelopment area. The poor quality of housing, crime and image that the neighborhood portrays must be changed in order to make the Village’s overall efforts a success.  Pacesetter Redevelopment, Phase I, would be comprised of approximately 100 units and cost approximately $22 million. It is proposed that all of the units in this first phase be rehabilitated. The development team would acquire these properties from individual landowners. The plan is to control all properties along Lowe Avenue by the end of 2005. By location and number, these properties would create the critical mass required for economic feasibility, while providing a development of sufficient size to make a visible impact.  The Village is seeking an initial investment in the project of $5 million over a period of two federal fiscal years.  [Obama Request Letter to the Senate Appropriations Subcommittee on Transportation, Treasury, the Judiciary, HUD & Related Agencies, 11/6/05]

The Pacesetter funding by Charter One Bank and the Obama earmark request are not so coincidental. Charter Bank is the same bank that took over the Superior Bank assets in 2001. From the FDIC:

FDIC APPROVES SALE OF
SUPERIOR FEDERAL BANK, FSB, HINSDALE, ILLINOIS
 
FOR IMMEDIATE RELEASE
PR-78-2001 (10-31-2001)  Media Contact:
David Barr (202) 898-6992 

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved the sale of the branches and deposits of Superior Federal Bank, FSB. The winning bidder is Charter One Bank, FSB, Cleveland, Ohio.

Superior Federal Bank, FSB is the conservatorship established by the FDIC after the Office of Thrift Supervision closed Superior Bank, FSB on July 27, 2001. Charter One has agreed to pay the FDIC a premium of $52.4 million to assume the 17 locations and the $1.1 billion of deposits held in conservatorship.

In addition to assuming all the deposits, Charter One is acquiring approximately $45 million of Superior’s assets. These assets consist mainly of home equity lines of credit, overdrafts assigned to each branch location, cash and cash equivalents.

Now one has to wonder exactly how Sen. Obama’s request, which was apparently denied or died on a Bill, was then funded by Charter One Bank. Penny Pritzker was Obama’s big money and fundraiser for his Senate campaign and also was directly responsible for Superior Banks failure. This is no coincidence, or if it is, it surely raises red flags to the possibility of influence peddling by the Obama camp or even Sen. Obama directly. Read the FDIC press release. There were $45 million of home loans, and most were sub-prime loans. Questions need to be asked regarding if Sen. Obama was able to pull a few strings with Fannie Mae to get these loans spread to other sources of funding in exchange to lending the project funds.

Once we look into the Rezko trial, we find something very interesting once again. Rezko was convicted of of six counts of mail fraud, six counts of wire fraud, two counts of money laundering and two counts of abetting bribery. He was acquitted on eight counts, including a charge he tried to extort as much as $2 million from Lakeshore Entertainment Group founder and former Capri Capital principal Thomas Rosenberg, who testified against him at trial.

Once again we find Penny Pritzker having ties to Capri Capital as they both serve on the Boards of The Real Estate Roundtable with Ms. Pritzker as it’s Treasurer as late as March, 2008. Much of there efforts have been to lobby for many changes in real estate and real estate funding laws. One letter was directly to Sen. Chris Dodd requesting changes in allowing the Federal Reserve to purchase loans and asset-backed securities, identically the type of securities being sold by Fannie Mae/Freddie Mac to Wall Street. Bear in mind that Ms. Pritzker is President of Pritzker Reality Group L.P.

Another place we find Capri Capital is in the CCLF (above). In their 2006-2007 Annual Report, we find that Capri is listed as one of the Sponsors. Also we find that CCLF was also funded by Fannie Mae as well. All of these funds are directed primary at the Riverdale/Pacesetter project.

The Rezko/Pritzker connection goes deep and finding the link hasn’t been easy. On October 1, 2006, Daley appointed Martin Nesbitt chairperson of the Chicago Housing Authority. The CHA was created for “the purposes of engaging in the development, acquisition, leasing, operation, and administration of a Low Rent Housing Program and other federally assisted programs,” according to the agency’s 2005 annual financial report.

Nesbitt is also vice president of the Pritzker Realty Group, where he procures new real estate investment opportunities, retail investments and developments for the Pritzker Group, according to the CHA web site. Nesbitt succeeded Sharon Gist Gilliam, according to the CHA web site. Gilliam is a former board member of Rezmar (Rezko’s Company). She told the Sun-Times that she was only on the Rezmar board until 1991. However, the Times found her still listed as a board member in a 1994 biography on the company’s web site. A quick trip to the Huffington Post site showed tens of thousands of dollars donated to Obama from people with the last name Pritzker in the Chicago area but many people are listed as homemaker or not employed or information requested. Nesbitt is treasurer for Obama’s presidential campaign according to the Center for Public Integrity. Over his political career, Nesbitt has contributed more than $10,000 to Obama’s campaigns.

From what I am able to conclude is this. Rezko began shaking down Capri Capital from the inside of of the Teachers Retirement System (TRS) in Illinois. Capri is engaged primarily in raising capital by creating investment vehicles for real estate development projects. The TRS was going to award $200 million to Capri and Rezko began demanding a kickback. This is primarily what he was convicted of in the bribery charge.

Pritzkers involvement in the long trail comes in the Chairmanship of the CHA by her vice president. She has also been involved in legislative efforts in Washington by her direct involvement in The Real Estate Roundtable lobbying efforts with Senate Chairman Chris Dodd. There are multiple connections to Capri in other organizations in which she is either involved with or a Board member of, as is Capri CEO Quintin Primo III. Primo was also part of the group who Obama consulted regarding his Presidential run. The Capri Connection also revolved around the CCFL and also the Pacesetter Project at Riverdale.

Everywhere you turn, the one name that connects this long paper trail is Barrack Obama. He was directly connected to, donated to, and fully supported by each of these people. These are not just your basic supporters, but are in his circle of advisers that he trusts with his campaign and the financial aspects as well. Each of these people are not just heavily involved in real estate, real estate financing, and real estate development, but are also connected to the Boards and institutions that control the funding for many of the Chicago developments. Every where you look, you find scandal, corruption, and ties to illegal activity, bank collapse, Fannie Mae, and investment in real estate that has collapsed nationwide.

I suspect that Obama is the puppet and these people are rallying around in order to salvage their billions in investment and wealth. They NEED Obama in the White House before their houses come tumbling down. There can be no question that they have more to lose than the White House, but also stand to have much exposed from Federal Investigators should Rezko tell it all. It wouldn’t surprise me to see Rezko silenced before he can tell what he knows.

It goes far deeper I am sure, but the paper trail is massive. It still boils down to one thing- Sen. Obama has a far greater stake in these people than we have been led to believe. His “this is not the person I once knew” simply isn’t going to work this time. The link will soon be exposed and hopefully, someone who knows more than I have uncovered will come forward over the next couple of weeks. 

Another excellent read on the many connections Obama has to much of Chicago’s real estate and financing is at dontvoteobama.net by Evelyn Pringle.

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Tags: Barrack Obama, obama real estate, Obama scandel, rezko, slumlords

This entry was posted on Wednesday, October 1st, 2008 at 6:34 am and is filed under 2008 election, The Presidential Candidates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.