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

[Fran]

GromytThe Dog:

Penny Pritzker is the National Finance Chairperson for Barack Obama. Have you have any clue what that means? She was DIRECTLY involved in the in the management of Superior Bank and the subprime loan scandal and bank failure in Chicago. The Pritzker's involved the Hillary Clinton campaign were NOT involved in the management of the Superior Bank. In addition they are NOT the National Finance Chairperson for Hillary Clinton.

[GromytTheDog]

Hmmm, Penny Pritzker's resume sounds tarnished. But then again, so does Maggie Williams' (Clinton campaign manager).

The Pritzkers
http://www.chicagotribune.com/news/
nationworld/chi-0705130653may14,0,3829927,full.story

Maggie Williams
http://latimesblogs.latimes.com/
washington/2008/03/clinton-campaig.html

So do you think Senator Clinton would be either objective or aggressive in identifying the troubling parts of former president Bill Clinton's legacy, including signing Gramm-Leach-Bliley? (NAFTA? Etc.)

My point is, she's so thoroughly enmeshed her "35 years of experience" in her husband's presidency, rightly or wrongly, that it's hard for her to critique or challenge any part of that legacy without looking like she's flip-flopping or just giving those years a pass.

So do you want Phil Gramm to be the head of economic policy in John McCain's presidential cabinet?

Me neither. But I also don't want someone like Clinton who will pull punches when it comes to fighting for what's best for the American people.

[Fran]

To GromytTheDog,

Do you know the difference between manager and OWNER/Manager? That is the different between Maggie Williams (manager) and Penny Pritzker (OWNER/Manager). The responsibility of each of these positions is quite difference. This is the second bank that Penny Pritzker was involved which failed and from which she made a profit under shady circumstances. Maybe you can be satisfied with a loan shark and thief as a candidate's Natl Finance Chair person and possible Sec of Treasury. Given what we've experienced under the G.W. Bush administration, I think most Americans wouldn't find those traits acceptable. However, you may be different. Unfortunately for Barack Obama he either has never learned or doesn't care that we are judged by the company we keep. Jerimiah Wright, Penny Pritzker, Tony Rezko and the list in Chicago goes on and on. Some of us have higher standards for our Presidential candidates and some of us don't. That's how we end up with G. W Bush.