Hillary Clinton's sub-prime connection

News item: Newsday reports that longtime Hillary Clinton aide and fixer Maggie Williams made $200,000 working for a now-bankrupt sub-prime lender that was known for marketing high-fee loans to low-income borrowers.  The lender, Delta Financial Corp., hired Williams to improve its crisis-management operation after state and federal investigations  led the company to pay $12 million to borrowers.

I've been hoping for an item like this so that I could climb up on my high horse and make a few political points. First, let's be honest about why Delta Financial hired Maggie Williams: they hired her because she is known and respected by the Clintons and other important Democrats (she was recruited by a former New York City politician). She was hired as a political fixer. Someone who could pick up the phone and get a United States senator on the other end.

Second, the Clinton connection is a reminder that sub-prime lenders had friends and defenders in both parties. There is a bit or revisionist history running around right now that claims Democrats tried to rein in sub-prime lenders. Yes, a few state attorneys general did try. But the Democratic Party in Washington was deep into this mess, cheering just as loudly as Republicans were for the "rise in homeownership levels."  The responsibility for years of criminally weak regulation of mortgage lending rests with both political parties.

True, the mortgage mess now has become a partisan issue, with Democrats advocating aggressive government intervention and new regulations on lenders. But let's not confuse that with history, and how we got here.  And let's remember, the lenders, builders, the banks may be dumb, but they're not stupid: they have plenty of friends in both parties today, massaging legislation and regulation as we speak.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo Credit: AP
 

Comments

[Inland Empire]

Fife Simmington and Cindy McCain?

[Michael Snyder]

Let me see, anyone remember "Whitewater"? Didn't someone commit suicide over that debacle and their relationship with the "Queen of Sleaze"? Hillary's always acted as if the rules were hers' to manipulate and apply to others as convenient. Didn't another of her "Bundlers" just land in jail? O' yea, I caught a post on http://www.huffingtonpost.com. To quote, "Hillary Rodham Clinton's cash-strapped presidential campaign has been putting off paying hundreds of bills for months -- freeing up cash for critical media buys, but also earning the campaign a reputation as something of a deadbeat in some small business circles."
That was politely put, but it's a pretty good indicator of just how she'd "run the country".

Somehow my only surprise is in people's failure to recognize just how little difference there is between the political parties anymore. The only real difference is the paint job they put on their handouts to the special interest that "lobby" Congress.
"Lobby"; such a polite term for graft. You've only to look at Congressional pay policies and the rules around "campaign contributions" to realize what an inherently corrupt organization Congress is.

Ben Franklin may have "gotten around" but we could sure use a little of "Poor Richard's" wisdom in the halls of power these days.

[sfvrealestate]

Sigh. This is why I registered Green a few years back. I wish that were the answer.

[Fourth Generation]

"Our current regulatory structure was not built to address the modern financial system with its diversity of market participants, innovation, complexity....." says Paulson. In reality this is/was not a regulatory problem but a political and ideological consequence. With an administration whose basic ideology in economy and government is liaises faire you cannot expect to produce any vision of regulation. Government cannot produce any action unless the leadership (i.e., elected officials at the White House and Congress) act upon initiatives to tackle situations. Government is not the ineffectual party here but politicians beholden to their parties’ ideologies and priorities.

[Santa Barbara Real Estate Voice]

Peter,

Thanks for the article and the political spin. I tend to shy away from the politics if I can, but I always enjoy the reading.

Most of my conversations here in the Santa Barbara area lean towards the lenders for putting the housing market is such distress...combine this with the credit card culture the US has and there you have it.

[TakeFive]

Thanks for a little fairness on this issue.

Now prepare to be unwelcome on Spring Street.

[Peter A.]

Mrs. Clinton should come out of the closet. Enough people have suffered to boost her or her associates' interests. Wal-Mart, Whitewater, Peter Paul, sub-prime... She supported NAFTA (though she now pretends she did not) and the war in Iraq where possibly hundreds of thousands of terrified children, women and men died or were burned and maimed, much much more than under the Sadam regime. She is rich enough. I feel sad that so many gullible people still trust the her.
At least she should have the decency to bow out now and save the party from total defeat. If she doesn't she risks ending up in disgrace.

[tew]

Well said Peter. Hopefully somebody with media appeal will manage to put together a credible timeline on the "sub-prime" / mortgage crime wave *before* the election. Mrs. Clinton's husband was a huge proponent of dramatically expanding sub-prime lending and various government-funded NGOs ("non-profits") were key enablers.

[mike]

to fourth generation

i never claimed to be very smart, could you possibly put that in language that myself and anyone else here cares to admit that they don't understand. you sound like a corporate big wig with a failing corporation.personally i don't think your blog says anything at all

due to the matter of which i am highly informed by vast years of experience and understanding on the matter of which i am highly educated due to many years of knowledge on the matter of which i am highly informed..................

[jacksmith]

YOU MIGHT BE AN IDIOT:-)

If you think Barack Obama with little or no experience would be better than Hillary Clinton with 35 years experience.

You Might Be An Idiot!

If you think that Obama with no experience can fix an economy on the verge of collapse better than Hillary Clinton. Whose ;-) husband (Bill Clinton) led the greatest economic expansion, and prosperity in American history.

You Might Be An Idiot!

If you think that Obama with no experience fighting for universal health care can get it for you better than Hillary Clinton. Who anticipated this current health care crisis back in 1993, and fought a pitched battle against overwhelming odds to get universal health care for all the American people.

You Might Be An Idiot!

If you think that Obama with no experience can manage, and get us out of two wars better than Hillary Clinton. Whose ;-) husband (Bill Clinton) went to war only when he was convinced that he absolutely had to. Then completed the mission in record time against a nuclear power. AND DID NOT LOSE THE LIFE OF A SINGLE AMERICAN SOLDIER. NOT ONE!

You Might Be An Idiot!

If you think that Obama with no experience saving the environment is better than Hillary Clinton. Whose ;-) husband (Bill Clinton) left office with the greatest amount of environmental cleanup, and protections in American history.

You Might Be An Idiot!

If you think that Obama with little or no education experience is better than Hillary Clinton. Whose ;-) husband (Bill Clinton) made higher education affordable for every American. And created higher job demand and starting salary's than they had ever been before or since.

You Might Be An Idiot!

If you think that Obama with no experience will be better than Hillary Clinton who spent 8 years at the right hand of President Bill Clinton. Who is already on record as one of the greatest Presidents in American history.

You Might Be An Idiot!

If you think that you can change the way Washington works with pretty speeches from Obama, rather than with the experience, and political expertise of two master politicians ON YOUR SIDE like Hillary and Bill Clinton..

You Might Be An Idiot!

If you think all those Republicans voting for Obama in the Democratic primaries, and caucuses are doing so because they think he is a stronger Democratic candidate than Hillary Clinton. :-)

Best regards

jacksmith...

[jacksmith]

DON'T BE DUPED !!!

Large numbers of Republicans have been voting for Barack Obama in the DEMOCRATIC primaries, and caucuses from early on. Because they feel he would be a weaker opponent against John McCain. And because they feel that a Hillary Clinton and Barack Obama ticket would be unbeatable. And also because with a Clinton and Obama ticket you are almost 100% certain to get quality, affordable universal health care very soon.

But first, all of you have to make certain that Hillary Clinton takes the democratic nomination and then the Whitehouse. NOW! is the time. THIS! is the moment you have all been working, and waiting for. You can do this America. "Carpe diem" (harvest the day).

I think Hillary Clinton see's a beautiful world of plenty for all. She is a woman, and a mother. And it's time America. Do this for your-selves, and your children's future. You will have to work together on this and be aggressive, relentless, and creative. Americans face an even worse catastrophe ahead than the one you are living through now.

You see, the medical and insurance industry mostly support the republicans with the money they ripped off from you. And they don't want you to have quality, affordable universal health care. They want to be able to continue to rip you off, and kill you and your children by continuing to deny you life saving medical care that you have already paid for. So they can continue to make more immoral profits for them-selves.

Hillary Clinton has actually won by much larger margins than the vote totals showed. And lost by much smaller vote margins than the vote totals showed. Her delegate count is actually much higher than it shows. And higher than Obama's. She also leads in the electoral college numbers that you must win to become President in the November national election. HILLARY CLINTON IS ALREADY THE TRUE DEMOCRATIC NOMINEE!

As much as 30% of Obama's primary, and caucus votes are Republicans trying to choose the weakest democratic candidate for McCain to run against. These Republicans have been gaming the caucuses where it is easier to vote cheat. This is why Obama has not been able to win the BIG! states primaries. Even with Republican vote cheating help.

Hillary Clinton has been out manned, out gunned, and out spent 2 and 3 to 1. Yet Obama has only been able to manage a very tenuous, and questionable tie with Hillary Clinton.

If Obama is the democratic nominee for the national election in November he will be slaughtered. Because the Republican vote cheating help will suddenly evaporate. All of this vote fraud and republican manipulation has made Obama falsely look like a much stronger candidate than he really is. YOUNG PEOPLE. DON'T BE DUPED! Think about it. You have the most to lose.

The democratic party needs to fix this outrage. I suggest a Hillary Clinton and Barack Obama ticket. Everyone needs to throw all your support to Hillary Clinton NOW! So you can end this outrage against YOU the voter, and against democracy.

I think Barack Obama has a once in a life time chance to make the ultimate historic gesture for unity, and change in America by accepting Hillary Clinton's offer as running mate. Such an act now would for ever seal Barack Obama's place at the top of the list of Americas all time great leaders, and unifiers for all of history.

The democratic party, and the super-delegates have a decision to make. Are the democrats, and the democratic party going to choose the DEMOCRATIC party nominee to fight for the American people. Or are the republicans going to choose the DEMOCRATIC party nominee through vote fraud, and gaming the DEMOCRATIC party primaries, and caucuses.

Fortunately the Clinton's have been able to hold on against this fraudulent outrage with those repeated dramatic comebacks of Hillary Clinton's. Only the Clinton's are that resourceful, and strong. Hillary Clinton is your NOMINEE. They are the best I have ever seen.

"This is not a game" (Hillary Clinton)

Sincerely

jacksmith...

[RichW]

"Somehow my only surprise is in people's failure to recognize just how little difference there is between the political parties anymore."

Thats for darn sure. I used to think Republicans were the answer to our ridiculous taxes and waste spending until I noticed they did it almost as bad as the Democrats. Its too bad the general electorate lacks the brain power to analyze these things, otherwise we would see both parties get the boot and have Libertarians elected to various offices.

Now that I'm done ranting, this sounds like typically Hillary shenanigans (Whitewater, "lost" law firm billing records, and of course the cattle futures where her $1000 magically turned into $100,000)

http://en.wikipedia.org/wiki/Hillary_Rodham_cattle_
futures_controversy

[CD]

fourth generation:
It is - laissez faire- not liaises faire which means absolutely nothing.

[Michael Snyder]

jacksmith
I really don't think you'd call me an idiot to my face, but then passive aggressive fits the bill (if you'll pardon the pun) for a Clintonite. Do you burn incense in front of her picture?

If there's a reason for my Libertarian views it's the likes of the Clinton/Bush/Kennedy/etc. royalist self entitled "dynastys" that have infected American politics in the last half century. But with loyal followers like you (stay away from the cool-aid) I'm sure they will continue to wreck what's left of America.

[save your ammo]

Jack Smith,
I might be an idiot but ...

YOU ARE AN IDIOT!
YOU ARE AN IDIOT!
YOU ARE AN IDIOT!
YOU ARE AN IDIOT!
YOU ARE AN IDIOT!
YOU ARE AN IDIOT!
YOU ARE AN IDIOT!
YOU ARE AN IDIOT!
YOU ARE AN IDIOT!
YOU ARE AN IDIOT!

So keep your political wet dreams off
this RE blog.

[GromytTheDog]

The real story in Clinton and Obama's speeches last week on the subprime meltdown is not whose bailout plan is bigger, but who's willing to hang the mess we have now on Bill Clinton's signing of Gramm-Leach-Bliley 1999, which repealed Glass-Steagall 1933 and took away the firewall between investment banks and commercial banks.

Is Senator Clinton really going to crtiicize--much less repudiate--her spouse's legacy, even if it's partly to blame? I think not. She's just too compromised a candidate in so many ways.

But Senator Obama has none of that baggage and in fact alluded to the repeal of Glass-Steagall 1933 as part of the reason we have the climate ripe for the subprime mishegoss we have on our hands now. Just look at the transcript of his speech.

Check it out:
http://momocrats.typepad.com/momocrats/
2008/03/phil-gramm-than.html

and
http://momocrats.typepad.com/momocrats/
2008/03/round-up-of-cli.html

Special bonus? Former senator Phil Gramm, of Gramm-Leach-Bliley, is currently vice chair of UBS and ECONOMIC ADVISOR TO JOHN MCCAIN.

So if you want *more* pillaging and looting of middle class wallets to fatten Wall Street high-flyers, vote for McCain.

[Alzach]

Hillary Rodham Clinton does not have a shred of credibility left, for she has been telling too many lies. She should just pack up her bags (and her baggage) and go away. Whitewater, Vince Foster, sniper fire in Bosnia, relations with Walmart, Maggie Williams and Delta Mortgage, NAFTA et al. Lies ,lies, lies.
Hillary's nose must be the fastest growing thing on the face of the earth.

[Andrew Smith]

Wow...this article has no credible basis...the writer should check her info or go learn about how the mortgage industry works first. One, Delta Financial, was one of the few sub prime mortgage companies that did not partake in this whole lending fiasco, giving exotic loans, interest only ARMs loans. They had strict underwriting standards and focus SOLELY on FIXED RATE loans and not these ARMs loans that giving the high defaults. Delta Financial's recent bankruptcy was caused by the current credit crisis and were victims of the macro environment in this industry. Check their loans, most of their loans are still performing fine. That said, there is a reason why subprime mortgages exist, there is a need for it, with the right underwriting guidelines and prudent diligence, it is a profitable business.

[Fran]

What about Barack Obama's connnection to the queen of subprime loans and bank failure Penny Pritzker? She is Obama's National Finance Chairperson. Its been suggested Pritzker is being considered for an Obama administration's Secretary of the Treasury. Talk about the fox guarding the hen house? Ms Pritzker and her participation in the shinanigans that caused the Superior Bank failure, July 2001 (Chicago and suburbs) caused 1,406 depositors to lose $42 million. As of this date, depositors haven't been reimbursed in full for the travesty that was put on them even though Ms Pritzker and her family are worth close to $30 BILLION. Obama can't say he doesn't know about her involvement because he was alive and well and living in Chicago at the time of the scandal where it was BIG news. Why has the mainstream media found this not important enough to cover? Could it be she is politically connected to the Chicago crowd while the depositors who were stiffed are everyday working class people? Could it be the cable and mainstream media are overwhelmingly bias toward Obama?

[Mary LB]

Jack Smith; I can only shake my head in disbelief. Senator Obama has worked in Congress across party lines to enact and pass legislation on the very subject of holding our elected officials accountable in the area of money. My father used to call it "one hand washes the other"; someone here used the word: gaffes, also known as lobbyists, PACs or special interest groups.

The Clintons have a long history~going back to Arkansas days of favortism given to their friends. Hoffman-La Roche is a good example of a pharmeceutical that "buys" laws or FDA approval by campaign contributions. (To Hillary in 2004 and again in 2006, $10,000.) They were found guilty of price fixing. One of the CEO's was named richest man in the world a few years back.

Because Senator Obama (and others) have a proven track record of fighting this kind of corruption in government, people who vote for him are probably much smarter and better informed than yourself. He would never call you an idiot, btw, name calling is Clinton territory. He thinks you are a "decent" person.

[Mary LB]

Jack Smith: I personally know dozens of PA voters. They are all voting Obama. They would take offense to you calling them idiots. Especially my Marine vet, pro-war, Republican son-in-law who switched to Democrat to support Obama because he knows Obama is the best candidate. The opposite of what you said is true.

McCain supporters all know Hillary is an easy win for them, and that is why many are voting for her; they know Obama can beat McCain.

The exception to those I personally know who is supporting Clinton. My ex-husband. I had to ask my daughter out of curiosity. He always hated "woman's libbers", a staunch Democrat and the Ku Klux Klan rejected him because his children refused to join. He is voting Hillary.

Smart people use the internet to check voting records, read Bills and Resolutions and I did visit US Spending (the website Obama and 17 bipartisan Congress members made a reality with the Government Transparency Act and additional bills), but rather tedious to study. I use Open Secrets online to verify campaign contributions to whom and from whom.

I have an average IQ, but am far from being an idiot. My oldest daughter and son were labeled "Gifted and Talented" for above average intelligence. I truly resent you calling us idiots.

[Rep. Mike]

Please don't post any more political items here. It's depressing enough knowing that I'll be able to afford a home for the first time in 3 years but wont have a job. I don't need to listen to idiots shout empty slogans back and forth about which morally corrupt candidate might do a slightly better job then the other one.

[mariano]

Jack Smith:

"The Obama-Bond amendment is supported by the National Veterans Legal Services Program, Veterans for Common Sense, and Disabled American Veterans."

Are you calling these people who approve of Senator Obama and Republican Kit Bond's FY 2009 Budget Resolution amendment idiots? Are you actually saying best selling authors, Pulitzer and Nobel prize winners are idiots?

Perhaps you are speaking of yourself. Unless I missed it Obama's name was not in this article, so why the rude comment?

[MyLessThanPrimeBeef]

Maybe I miss something, but I thought the sub-prime connection was Hilary's campaign itself, out of cash, not good enough FICA score to borrow and she had to use her own money instead.

That's sub-prime, isn't it?

[GromytTheDog]

Fran,
Funny you should mention the Pritzker family of Illinois.

One Pritzker sibling is on Obama's campaign committee, the other is on Clinton's.

Next?

Gromyt