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April 21, 2008

Fact Check on Willie Horton-Style Ad on Obama and the Death Penalty

SCRIPT: Tamika McFadden-Harris. Murdered leaving church choir practice. Cut down by gang gunfire while shielding her 6 year old daughter. Mike Boyd. Killed at 15. Beaten with bricks after a gang member crashed into his car. Severo Enriquez. Just 14 years old. When he refused to flash a gang hand sign he was shot 5 times in the back. They all died in 2001, in Chicago. The Sun Times called it 'urban terrorism,' and demanded action on gang violence. [Chicago Sun-Times, 11/23/01]


CHICAGO SUN-TIMES EDITORIAL WAS WRITTEN MORE THAN THREE MONTHS AFTER HOUSE BILL 1812 WAS VETOED; ILLINOIS EDITORIAL BOARDS OPPOSED THE BILL

8/17/01: Republican Governor Vetoed The Bill "In Light Of Existing Laws, Constitutional Concerns And Out Past History Of Erroneously Sentencing Individuals To Death." In August 2001, Gov. George Ryan vetoed the death penalty for gang members bill, saying the legislature should be questioning rather than expanding the use of the death penalty in the state. Ryan said in his veto message, "I believe its efforts are misdirected in light of existing laws, constitutional concerns and our past history of erroneously sentencing individuals to death." [Chicago Tribune, 8/18/01; HB 1812, Veto Message, 8/17/01]

Chicago Tribune: "Isolated Tragedies Should Not Guide Public Policy...Language Used In the Bill Is Overly Broad, For One Thing, And Such A Bill Could Well End Up Discriminating Against Minorities And The Poor."
The Chicago Tribune wrote in an editorial, "Mendoza's heart is in the right place, but isolated tragedies should not guide public policy...Mendoza's legislation has little chance of passing the Senate. Language used in the bill is overly broad, for one thing, and such a bill could well end up discriminating against minorities and the poor. But that's not the real reason this legislation is a bad idea...Last year, Gov. George Ryan formed a 36-member commission to rewrite the state criminal code, a document that has grown like legal kudzu after four decades of neglect. Commission members are charged with ridding it of arcane laws, contradictions, duplications, vagaries and other confusions. It is a monumental task, and Ryan deserves praise for demonstrating the leadership to get the process started. And as they do, they should bear in mind that if Illinois recommits itself to reserving the death penalty only for those who commit the most heinous crimes, as it should, then what's needed is fewer factors, not more." [Chicago Tribune, 4/18/01]

State Journal-Register: House Bull 1812 "Should Not Have Passed;" Illinois' Death Penalty Overhaul Should Be Completed Before Addressing New Aggravating Factors, Especially Those "As Ambiguous As This One." The State Journal Register wrote in an editorial, "Yet, at a time when many in Illinois seem convinced that the state's capital punishment system needs a major overhaul, the General Assembly has approved legislation that could once again increase the number of people who would be eligible for the death sentence...Mendoza knows the bill's passage will look good on her next set of campaign brochures, and she probably also correctly assumed that the last thing most legislators want is to record a "no" vote on an anti-crime measure. But for plenty of reasons, this bill should not have passed, and we believe Gov. Ryan was correct in vetoing it...In short, House Bill 1812 is not needed. But worse than that, it adds a fuzzy extension of the most serious punishment -- a punishment that cannot be reversed. Exactly what is 'furtherance of gang activity'? Chances are it will vary from case to case, jurisdiction to jurisdiction. Illinois is in the process of trying to clean up its capital punishment system. That task must be completed before any more laws are passed adding people to death row -- especially laws as ambiguous as this one. We urge the General Assembly not to override the governor's veto on this bill." [State Journal-Register, 11/13/01]


SCRIPT: "But that same year, a Chicago state senator named Barack Obama voted against expanding the death penalty for gang-related murders."

THE REPUBLICAN GOVERNOR OF ILLINOIS VETOED THE BILL, REPUBLICAN REPRESENTATIVE ADMITTED THE BILL WAS "FOR THE FOLKS BACK HOME AT ELECTION TIME"



Republican Governor Vetoed The Bill "In Light Of Existing Laws, Constitutional Concerns And Out Past History Of Erroneously Sentencing Individuals To Death."
In August 2001, Gov. George Ryan vetoed the death penalty for gang members bill, saying the legislature should be questioning rather than expanding the use of the death penalty in the state. Ryan said in his veto message, "I believe its efforts are misdirected in light of existing laws, constitutional concerns and our past history of erroneously sentencing individuals to death." [Chicago Tribune, 8/18/01; HB 1812, Veto Message, 8/17/01]

Davis: Gangs Bill "Was For The Folks Back Home At Election Time." Representative Jack Davis said that the bill was as much about image as substance. Illinois Issues reported, "Of course, there are political considerations. It's no secret that by voting for aggravating factors, lawmakers help build their tough-on-crime images. Even the legislator who sponsored the first additional aggravating factor admits as much. 'A lot of that was press and showmanship,' Davis says about all of the factors that have been added. 'It was for the folks back home at election time.'" [Illinois Issues, 10/01]


A QUARTER OF THE ILLINOIS SENATE AND MAJOR ORGANIZATIONS OPPOSED THE BILL

A Quarter Of The Illinois Senate Voted "No" Or "Present." Senators Hendon, E. Jones, Lightford, Link, L. Madigan, Obama, Ronen, Shaw and Trotter voted no. Senators Cullerton, del Valle, Molaro, Silverstein and Smith voted present. [92nd GA, HB 1812, 3R P 44-9-5, 5/15/01, Roll Call]

Ø Hendon: Bill Targets One Group, Not Organized Crime, Which Was Selective Enforcement Of The Law.
Rickey Hendon said on the floor, "And what we're trying to get to -- I want everyone to understand -- is that this bill, unfortunately, targets one group. One group. It does not target organized crime...That's discrimination. That's selective enforcement of the law." [92nd GA, HB 1812, ILGA Transcript, 5/15/01]

Ø Jones: "It's A Bad Bill."
Emil Jones said on the floor, "It's a bad bill. I intend to vote no." [92nd GA, HB 1812, ILGA Transcript, 5/15/01]

Ø Molaro: Threatening Teenagers With The Death Penalty "Isn't Going To Stop That Conduct."
Molaro said on the floor, "...The only thing that this General Assembly could come up with is we're going to say instead of putting -- giving them life without possibility of parole or sixty years, 'We're going to put 'em to death. That'll stop this conduct. That'll teach these eighteen-year-olds.' Come on. What are we doing his, so we feel better about ourselves? This isn't going to stop that conduct." [92nd GA, HB 1812, ILGA Transcript, 5/15/01]

Ø Trotter: HB 1812 Created Constitutional Concerns Regarding Gang Membership; Most Gang-Related Murders Would "Already Qualify For The Death Penalty."
The Hyde Park Citizen reported, "'House Bill 1812 raises serious constitutional questions concerning gang membership, since mere gang membership and/or allegiance to a gang is not unlawful,' Trotter said. 'Because the definition of gang membership used in this bill is a broad one, it has developed some serious problems.'...Most gang-related murders mentioned by Ryan, the Senator noted, already qualify the offender for the death penalty." Donne Trotter said, "Most gang-related murders would already qualify for the death penalty under a number of aggravated factors already on the books." [Hyde Park Citizen, 11/1/01; Chicago Tribune, 10/25/01]

Opponents Of The Legislation Included Jesse Jackson, The Illinois Coalition Against The Death Penalty, The NAACP, The Catholic Conference Of Illinois, The ACLU, The League Of Women Voters, Amnesty International And The Lutheran Advocacy Network Murder Victims' Family For Reconciliation. The Chicago Defender reported, "Jackson was joined by a number of groups including the: Illinois Coalition Against the Death Penalty, the NAACP, Reps. Lou Jones (D-5th), Sens. Donne Trotter (D-16th), Barack Obama (D-13th), Rep Constance Howard (D-32nd), Monique D. Davis (D-27th), Catholic Conference of Illinois, the American Civil Liberties Union, the League of Women Voters of Illinois, Amnesty International USA-Illinois Chapter, the Lutheran Advocacy Network Murder Victims' Families for Reconciliation, and others." [Chicago Defender, 11/20/01]

"Civil Rights Activists, Black, White, Latino Lawmakers" United Against A Veto Override. The Chicago Defender reported, "In an unprecedented show of unity against an attempt to override a bill that expands the death penalty to include crimes involving gang activity, civil rights activists and Black, white, Latino lawmakers Wednesday served notice on state leaders to let Gov. Ryan's veto remain. The controversial HB-1812, which has been vetoed by Ryan, should remain in the legislative cemetery if Rep. Lou Jones' (D-5th) and the Illinois Legislative Black Caucus' (LLBC) campaign to stop an override effort is successful." [Chicago Defender, 10/25/01]


SCRIPT:
When the time came to get tough, Obama chose to be weak. So the question is, can a man so weak in the war on gangs be trusted in the war on terror? The National Campaign Fund is responsible for the content of this ad.

OBAMA SAID ON THE FLOOR THAT HE FELT THAT THE CRIME ALREADY FELL UNDER DEATH PENALTY PROVISIONS, SAID THAT THE CRIMINAL COULD "BE DEALT WITH IN THE APPROPRIATE FASHION;" OTHER ORGANIZATIONS THAT OPPOSED THE BILL AGREED

Obama Said That In The Specific Crime For Which The Bill Was Written, The Death Penalty Would Already Have Applied. Obama said, "Obviously, the situation in Representative Mendoza's district was extraordinarily tragic...So because I think that the current situation of the fifteen-year-old that you discussed could have been covered under this provision that you read...And for those who support the death penalty, anytime that somebody...carried out these heinous crimes, I think they can, in fact, be dealt with in the appropriate fashion." [ILGA Transcript, 5/15/01, p.47-48]

Obama Voted For Tougher Penalties For Gang Activity.
Obama voted to include in the definition of "course or pattern of criminal activity," acts of criminal defacement of property if the defacement includes a sign or other symbol intended to identify the streetgang. [93rd GA, HB 2529, 5/13/03, 3R P; 58-0-0; P.A. 93-0337, 7/24/03]

Obama Voted To Prohibit Released Gang Members From Associating With Old Gang. Obama voted to provide that if the State presents evidence, and the court substantiated that the offense committed by the defendant was related to or in furtherance of the criminal activities of an organized gang or was motivated by the defendant's membership in or allegiance to an organized gang, the court shall prohibit the defendant from associating with other members of the organized gang as a condition of bail or release. [93rd GA, HB 506, 5/7/03, 3R P; 57-0-0; P.A. 93-0254, 7/22/03]

Obama Voted To Make Recruiting For A Gang At School A Crime.
Obama voted to create the offense of criminal street gang recruitment on school grounds (including a school yard, school playing field, and school playground), which a person commits when on school grounds or public property adjacent to school grounds, he/she threatens the use of physical force to coerce, solicit, recruit, or induce another person to join or remain a member of a criminal street gang, or conspires to do so. The penalty for the offense (House Amendment No. 1) is a Class 1 felony. [93rd GA, HB 4788, 5/13/04, 3R P; 57-0-0; PA 93-0938, 8/13/04]

Obama Voted To Permit The Required Removal Of A Minor's Tattoo Symbolizing Allegiance To A Street Gang As A Condition For Probation. Obama voted to amend the Juvenile Court Act of 1987 to permit the court, as a condition of probation, to require that the minor undergo a medical or other procedure to have a tattoo symbolizing allegiance to a street gang removed from his or her body. The amendment provides that the court as a condition of an order of continuance under supervision or as a condition of another sentence, must require that the minor undergo a medical or other procedure to have a tattoo symbolizing allegiance to a street gang removed from his or her body. [91 GA SB 0400 3R P 58-0-0, 3/18/99; PA 91-0098, 7/9/99]

Obama Voted To Criminalize Willful Gang Activity By A Peace Or Corrections Officer. Obama voted to amend the Criminal Code of 1961 to make it unlawful for a peace officer or correctional officer to knowingly commit an act in furtherance of gang--related activities, except when acting in furtherance of an undercover law enforcement investigation. Penalty is a Class 3 felony. [90 GA HB 2287 3R P 56-0-0, 5/9/97; PA 90-0131, 7/22/97]


OBAMA ALSO SUPPORTED EXPANDING THE DEATH PENALTY FOR SOME CRIMES

Obama Sponsored Bill To Extend Death Penalty For 1st Degree Murder Within 500FT Of A Place Of Worship. Obama was the chief co-sponsor of bill providing that a person who commits first degree murder using a firearm in or within 500 feet of a church, synagogue or other place of worship is eligible for the death penalty. The bill would provide enhanced penalties for commission of other enumerated offenses, including second degree murder and aggravated assault. [91st GA, SB 1615, 2/15/00]

Obama Supported Extending the Death Penalty For Certain Domestic Violence Cases. Obama voted for a bill to extend the death penalty to include cases in which someone who is under an order of protection is killed by the offender named in the order. [90th GA, HB 3652, 5/7/98, 3R P; 56-0-1; P.A. 90-0668, 7/31/98]

Obama Voted In Favor Of The Death Penalty For People Who Murdered Disabled People Knowing That They Were Disabled And For Senior Citizens. Obama voted to provide that the death penalty for first degree murder may be imposed upon an offender when the murdered individual was 60 years or older and the death resulted from exceptionally brutal or heinous behavior indicative of wanton cruelty or when the murdered individual was a disabled person and the defendant knew or should have known that the murdered individual was disabled. [90 GA HB 1315 3R P 57-0-0, 5/9/97; PA 90-0213, 7/25/97]

April 19, 2008

Politico Story on Joyce Foundation Inaccurately Implies Obama Supports Banning Handguns

JOYCE FOUNDATION GAVE OUT HUNDREDS OF MILLIONS OF DOLLARS WHILE OBAMA WAS ON THE BOARD--THE VAST MAJORITY TO GROUPS THAT WERE NOT RELATED TO GUN VIOLENCE

Joyce Foundation Gave Out More Than $240 Million While Obama Was on the Board; $30 Million to Gun Violence Groups. The Joyce Foundation gave out $240,220,161 while Obama was on the board. $30,192,584.00 went to groups fighting gun violence. The 94 gun violence-related grants given while he was with the Foundation were about 6 percent of the total number of grants they gave during that period. [Joyce Foundation Annual Reports]


Joyce Foundation Funded Efforts To Reduce Gun Violence That Were Not Related to a Position on Handguns

$600,000.00 to the University of Pennsylvania to activate trauma surgeons in the effort to reduce gun injuries and deaths

$600,000.00 to the Harvard University School of Public Health for the development of a national firearm injury reporting system

$317,733.00 to the Duke University Office of Research Support to conduct and oversee research which seeks to produce an accurate estimate of the annual cost of gunshot wounds in the United States [Joyce Foundation Annual Reports]


Joyce Foundation Gave Hundreds of Millions of Dollars to Non-Gun Related Efforts While Obama Was Involved

$1,500,000.00 to the Chicago Community Trust to support the Chicago High School Redesign Initiative in 2002

$1,009,386.00 to the University of Wisconsin-Madison, Wisconsin Center for Education Research to assist the Milwaukee public schools in developing and implementing a balanced student assessment system; and to conduct research and provide technical assistance on how individual schools in Milwaukee can best acquire and utilize data from the district data system in 2000

$750,000.00 to the Center for Law and Social Policy to develop recommendations and advocate for policies to improve the labor market prospect of low-income adults in 2001

$350,000.00 to the Center for Responsive Politics to provide citizens with information on the campaign finance records of elected officials in 1999 [Joyce Foundation Annual Reports]

Joyce Foundation Has a Broad Mission: To Support Great Lakes Protection, Reduce Poverty And Violence In The Region, Ensure Access To "Good Schools, Decent Jobs, And A Diverse And Thriving Culture." The Joyce Foundation supports efforts to protect the natural environment of the Great Lakes, to reduce poverty and violence in the region, and to ensure that its people have access to good schools, decent jobs, and a diverse and thriving culture. We are especially interested in improving public policies, because public systems such as education and welfare directly affect the lives of so many people, and because public policies help shape private sector decisions about jobs, the environment, and the health of our communities. To ensure that public policies truly reflect public rather than private interests, we support efforts to reform the system of financing election campaigns. [joycefdn.org, Mission Statement]


OBAMA HAS CONSISTENTLY SUPPORTED PROTECTING THE SECOND AMENDMENT RIGHTS OF LAWFUL GUN-OWNERS AND HUNTERS WHILE CHAMPIONING COMMON-SENSE MEASURES TO CRACK DOWN ON GUN VIOLENCE

Obama Said That It Is Not Incompatible For The Second Amendment To Be Respected And To Crack Down On Gun Violence. Tim Russert asked, "Senator Obama, when you were in the state senate, you talked about licensing and registering gun owners. Would you do that as president?" Obama said, "I don't think that we can get that done. But what I do think we can do is to provide just some common-sense enforcement...But here's the broader context that I think is important for us to remember. We essentially have two realities, when it comes to guns, in this country. You've got the tradition of lawful gun ownership, that all of us saw, as we travel around rural parts of the country. And it is very important for many Americans to be able to hunt, fish, take their kids out, teach them how to shoot. And then you've got the reality of 34 Chicago public school students who get shot down on the streets of Chicago. We can reconcile those two realities by making sure the Second Amendment is respected and that people are able to lawfully own guns, but that we also start cracking down on the kinds of abuses of firearms that we see on the streets." [Debate, 1/15/08]

Obama: America Has A "Tradition Of Gun Ownership In This Country That Can Be Respected." The Weekly Standard reported, "When a student asks Obama for his views on the Second Amendment, he reminds his audience that he taught constitutional law at the University of Chicago and is thus familiar with the arguments regarding the right to bear arms. He acknowledges 'a tradition of gun ownership in this country that can be respected,' and says that his academic studies convinced him gun ownership 'is an individual right and not just the right of a militia.' But he was not finished. 'Like all rights, though, they are constrained by the needs and the rights of the community.' Obama then spoke of 34 students who were killed on the streets of Chicago and called for sensible gun control to prevent senseless death." [Weekly Standard, 12/17/07]

Obama Said That The Rights Of Hunters And Lawful Gun Owners Can Be Protected While Working To Reduce Gun Violence. "On guns, the plan states, 'Obama believes that we can protect the rights of hunters and other lawful gun owners while still working to reduce gun violence.'" [Las Vegas Review Journal, 11/7/07]

2001: Obama "I Do Not Object To The Lawful Use And Ownership Of Handguns." Obama said, "I do not object to the lawful use and ownership of firearms, but I do think it is entirely it appropriate for the state to monitor it. Too many of these guns end up in the hands of criminals even though they were originally purchased by people who did not have a felony." [Chicago Defender, 7/5/01]


JOYCE FOUNDATION IS A MAINSTREAM ORGANIZATION THAT WAS A FUNDER OF A BILL CLINTON PRESIDENTIAL DEBATE

Joyce Foundation Served As A National Sponsor Of The 1996 Presidential Debates. The AP reported, "While President Clinton and Bob Dole share the limelight of the debates, Philip Morris, Sprint, and other corporate giants will be offstage paying the bills. The Commission on Presidential Debates has already secured between $25,000 and $250,000 each from five companies to be national sponsors of the three debates. An additional $1.5 million is being raised from companies in the host cities. All will get tax deductions...Three nonprofit foundations also serve as national sponsors: the Joyce Foundation, The Marjorie Kovler Fund, and Twentieth Century Fund. Under campaign finance laws passed in response to the Watergate scandal, corporations are banned from contributing money to political campaigns." [AP, 9/28/96]

President Bill Clinton Thanked The Joyce Foundation For Sponsoring The Conference On The Future Of The American Workplace. The following is a transcript of President Clinton's remarks to the Conference on the Future of the American Workplace. President Bill Clinton said, "I'd also be remiss if I didn't thank Adele Simons, the president of McArthur Foundation, for that foundation's support for this conference; and the Joyce Foundation for supporting the conference." [US Newswire, 7/26/93]

April 17, 2008

Fact Check on Obama and Ayers

REALITY: OBAMA WAS EIGHT YEARS OLD WHEN THE WEATHERMEN WERE ACTIVE

Obama Turned Eight In August 1969, The Days Of Rage Occurred In October 1969. Barack Obama was born on August 4, 1961. He turned eight on August 4, 1969. The Days of Rage, in which William Ayers participated, occurred in October 1969. [Obama Birth Certificate, UPI, 10/21/81]

William Ayers Participated In The "Days Of Rage" In 1969. The AP reported, "In the autumn of 1969, the Weatherman, led by Bernardine Dohrn and Mark Rudd, converged on Chicago and planned a series of demonstrations to dramatize their beliefs. The riots, which came to be known as the "Days of Rage," caused thousands of dollars in damage in the downtown and Near North Side areas and resulted in injuries to several policemen. Rudd and Ms. Dohrn were named in federal riot indictments with ten others -- William Ayers, Kathy Boudin, John Jacobs, Jeff Jones, Michael Spiegel, Howard Machtinger, Terry Robins, Lawrence Weiss, Linda Sue Evans and Judy Clark. Another prominent activist, Cathy Wilkerson, was arrested on state charges of mob action and resisting a police officer. Some surrendered years ago. Two -- Ms. Dohrn and Ayers, son of the former chairman of Commonweath Edison Co. -- surfaced Wednesday. Charges against Ayers had been dropped in 1978 but Ms. Dohrn still faces charges of aggravated battery and jumping bail." [AP, 12/3/80]


REALITY: AYERS CONNECTION IS "PHONY," TENUOUS," "A STRETCH"

Chicago Sun Times: Obama's Connection To Ayers Is A "Phony Flap". The Chicago Sun-Times wrote in an editorial, "But Ayers, it is also true to say, has since followed in the footsteps of the great Chicago social worker Jane Addams, crusading for education and juvenile justice reform. His 1997 book, A Kind and Just Parent: The Children of Juvenile Court, has been praised for exposing how Cook County's juvenile justice system all but eliminates a child's chance for redemption. Is Barack Obama consorting with a radical? Hardly. Ayers is nothing more than an aging lefty with a foolish past who is doing good. And while, yes, Obama is friendly with Ayers, it appears to be only in the way of two community activists whose circles overlap. Obama's middle name is Hussein. That doesn't make him an Islamic terrorist. He stopped wearing a flag pin. That doesn't make him unpatriotic. And he's friendly with UIC Professor William Ayers. That doesn't make him a bomb thrower. Time to move on to Phony Flap 6,537,204." [Chicago Sun-Times, 3/3/08]

Washington Post: Obama-Ayers Link "Is A Tenuous One." The Washington Post reported in a fact check, "But the Obama-Ayers link is a tenuous one." [Washington Post, 2/18/08]

Woods Fund President Harrington: "This Whole Connection Is A Stretch." The Washington Post reported in a fact check, "Whatever his past, Ayers is now a respected member of the Chicago intelligentsia, and still a member of the Woods Fund Board. The president of the Woods Fund, Deborah Harrington, said he had been selected for the board because of his solid academic credentials and 'passion for social justice.' 'This whole connection is a stretch,' Harrington told me. 'Barack was very well known in Chicago, and a highly respected legislator. It would be difficult to find people round here who never volunteered or contributed money to one of his campaigns.'" [Washington Post, 2/18/08]

Noam Scheiber Of TNR: "I Don't See Evidence Of Any Relationship" Between Obama And Ayers. Noam Scheiber of The New Republic wrote, "Ben says Ayers and Obama were, at best, casual friends. Even that seems to overstate things, though. I don't see evidence of any relationship. The only concrete connection we know of is the meeting, which was attended by a number of local liberals; their contemporaneous membership on the board of a local organization; and a $200-donation by Ayers to one of Obama's state senate campaigns. (Obama also once praised something Ayers had written about the juvenile justice system.) I'm not saying they couldn't have been casual friends; just that there isn't much evidence for that at this point." [The New Republic, 2/22/08]

Birdsell: Obama Links To Ayers Were "Pretty Slender Ties." The New York Sun reported, "'Those are pretty slender ties to a controversial figure,' the dean of Baruch College's School of Public Affairs, David Birdsell, said of Mr. Obama's links to Mr. Ayers." [New York Sun, 2/19/08]


RHETORIC: He was then asked about his association with William Ayers, a member of the Weather Underground, a radical group from the 1960s and '70s. Ayers was quoted after the attacks of Sept. 11, 2001, as saying he did not regret setting bombs and that "we didn't do enough." [Washington Post, 4/17/08]


REALITY: AYERS COMMENTS WERE PUBLISHED ON SEPTEMBER 11; THE INTERVIEW OCCURRED PRIOR TO PUBLICATION

On September 11, 2001, A Story About William Ayers' Memoir Was Published In The New York Times; The Interview Occurred Prior To Publication. "'I don't regret setting bombs,' Bill Ayers said. 'I feel we didn't do enough.' Mr. Ayers, who spent the 1970's as a fugitive in the Weather Underground, was sitting in the kitchen of his big turn-of-the-19th-century stone house in the Hyde Park district of Chicago." [New York Times, 9/11/01]


AYERS IS A TENURED PROFESSOR AT THE UNIVERSITY OF ILLINOIS AT CHICAGO AND WAS A "RESPECTED ADVISOR" TO MAYOR DALEY ON SCHOOL REFORM

Ayers Is A Professor Of Education At UIC. According to his website at UIC, "William Ayers is a school reform activist, Distinguished Professor of Education, and Senior University Scholar at the University of Illinois at Chicago where he teaches courses in interpretive research, urban school change, and youth and the modern predicament. He is the founder of the Center for Youth and Society and founder and co-director of the Small Schools Workshop. A graduate of the Bank Street College of Education and Teachers College, Columbia University, he has written extensively about social justice, democracy and education. His interests focus on the political and cultural contexts of schooling as well as the meaning and ethical purposes of teachers, students, and families." [Ayers UIC Site, Ayers Personal Site, Accessed 5/31/07]

Ayers Advised Chicago Mayor Richard Daley On School Reform Issues. Bill "Ayers is now mainstream -- an educator with distinguished professor status. He has written three books about education and has advised Chicago Mayor Richard M. Daley on the subject of school reform." [AP, 10/14/01]

Terkel: Ayers Is A "Sensitive And Gifted" Writer And Teacher. Studs Terkel wrote, "William Ayers is as sensitive and gifted a chronicler as he is a teacher." [Beacon]


CHARGES AGAINST AYERS WERE DROPPED AND HE SERVED NO TIME

1979: Charges Against Ayers Were Dropped Because "The Government's Case Was Based On Illegal Wiretaps." The New York Times reported, "William Ayers was a fugitive, too, for nine of those years, but the Federal charges against him, Miss Dohrn and other members of the revolutionary organization were dropped in 1979, when it was ruled that the Government's case was based on illegal wiretaps." [New York Times, 12/5/80]

Ayers "Served No Time." "William Ayers: Surrendered and pleaded guilty in 1980 to possession of explosives and served no time. Teaches early childhood development at the University of Illinois." [Boston Globe, 9/19/93]

April 11, 2008

Transcript of Obama’s Remarks at San Francisco Fundraiser Sunday

OBAMA: So, it depends on where you are, but I think it's fair to say that the places where we are going to have to do the most work are the places where people are most cynical about government. The people are mis-appre...they're misunderstanding why the demographics in our, in this contest have broken out as they are. Because everybody just ascribes it to 'white working-class don't wanna work -- don't wanna vote for the black guy.' That's...there were intimations of that in an article in the Sunday New York Times today - kind of implies that it's sort of a race thing.

Here's how it is: in a lot of these communities in big industrial states like Ohio and Pennsylvania, people have been beaten down so long. They feel so betrayed by government that when they hear a pitch that is premised on not being cynical about government, then a part of them just doesn't buy it. And when it's delivered by -- it's true that when it's delivered by a 46-year-old black man named Barack Obama, then that adds another layer of skepticism.

But -- so the questions you're most likely to get about me, 'Well, what is this guy going to do for me? What is the concrete thing?' What they wanna hear is so we'll give you talking points about what we're proposing -- to close tax loopholes, uh you know uh roll back the tax cuts for the top 1%, Obama's gonna give tax breaks to uh middle-class folks and we're gonna provide healthcare for every American.

But the truth is, is that, our challenge is to get people persuaded that we can make progress when there's not evidence of that in their daily lives. You go into some of these small towns in Pennsylvania, and like a lot of small towns in the Midwest, the jobs have been gone now for 25 years and nothing's replaced them. And they fell through the Clinton administration, and the Bush administration, and each successive administration has said that somehow these communities are gonna regenerate and they have not. And it's not surprising then they get bitter, they cling to guns or religion or antipathy to people who aren't like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations.

Um, now these are in some communities, you know. I think what you'll find is, is that people of every background -- there are gonna be a mix of people, you can go in the toughest neighborhoods, you know working-class lunch-pail folks, you'll find Obama enthusiasts. And you can go into places where you think I'd be very strong and people will just be skeptical. The important thing is that you show up and you're doing what you're doing.

Time's The Page

April 10, 2008

Fact Check on LA Times Story on Obama, Islam and Israel

REALITY: OBAMA IS "PRO-ISRAEL. PERIOD."

Haaretz Columnist: "Obama Passed Any Test Anyone Might Have Wanted Him To Pass. So, He Is Pro-Israel. Period." Schmuel Rosner wrote, "Barack Obama's big speech on Israel is now over, and as expected, the candidate made no secret of his support and dedication to the special relationship between the U.S. and Israel. "My view is that the United States' special relationship with Israel obligates us to be helpful to them in the search for credible partners with whom they can make peace, while also supporting Israel in defending itself against enemies sworn to its destruction," were Obama's words to Haaretz last week. Today, he sounded as strong as Clinton, as supportive as Bush, as friendly as Giuliani. At least rhetorically, Obama passed any test anyone might have wanted him to pass. So, he is pro-Israel. Period." [Haaretz, 3/07]

New York Sun: Obama's "Commitment To Israel...Is Quite Moving" Which "Israel's Friends In America...Can Warmly Welcome." The New York Sun wrote in an editorial, "At least by our lights, Mr. Obama's commitment to Israel, as he has articulated it so far in his campaign, is quite moving and a tribute to the broad, bipartisan support that the Jewish state has in America...But as a candidate, he has chosen to put himself on the record in terms that Israel's friends in America, at least those not motivated by pure political partisanship, can warmly welcome." [New York Sun, 1/9/08]

Friedman: All The Candidates "Have Demonstrated Their Support For A Strong US-Israel Relationship." The New York Sun reported, "On just the question of Mr. Obama's support for Israel, however, the president of the American Israel Public Affairs Committee, Howard Friedman, minimized any differences between the candidates. 'All of the leading candidates, Senators Clinton, Obama, and McCain, and Governor Huckabee, have demonstrated their support for a strong U.S.-Israel relationship,' Mr. Friedman said." [New York Sun, 2/21/08]

Wexler: Obama Has "An A-Plus" On Israel. The Cleveland Plain-Dealer reported, "As he did in Iowa and Maryland, U.S. Rep. Robert Wexler, an Obama adviser, addressed the Jewish community here Sunday afternoon at Anshe Chesed Fairmount Temple. 'Look at his record,' the Florida congressman told a crowd of about 500, a handful of whom wore yarmulkes stamped with "Obama '08." 'If you gave it a grade, it would be an A-plus.'" [Cleveland Plain-Dealer, 2/26/08]

Schorer: Obama Or Clinton Would "Offer A Sympathetic Ear And A Helping Hand To Israel." Sheldon Schorer wrote, "What does this mean for Israel? The good news is that both in Hillary Clinton and in Barack Obama, the Democrats are proposing candidates who are good for Israel. Both candidates understand the importance of Israel as a strong and reliable ally in this volatile region, Israel's need for security and the need for a Palestinian partner who earnestly desires peace and is capable of carrying out its commitments. Either candidate, if elected president, will offer a sympathetic ear and a helping hand to Israel. The excitement generated in the Democratic race thus far augurs well for a Democratic victory in November." [Jerusalem Post, 2/11/08]

Cohen: Obama "Feels Israel In His Kishkas." Roger Cohen wrote, "Foreign policy will roar back once this is a straight Republican-Democrat fight. A Democrat who's going to win has be strong on core American defense principles, which include Israel's security. Obama feels Israel in his kishkas, all right. Equally, he feels dialogue, which has been his way of getting things done since he became a Chicago community organizer in the 1980s. There would be no six-year time-outs on Israel-Palestine under an Obama presidency. "He'd be actively involved from day one," said Axelrod. Jews should get over the scaremongering: Obama is no Manchurian. Nor is he blind to the fact that backing Israel is not enough if such U.S. backing provides carte blanche for the subjugation of another people." [New York Times, 2/11/08]

Pinkas: "If Barack Obama Is Not 'Pro-Israel,' Then Neither Are Most Israelis." Alon Pinkas wrote, "Trying to refute the ridiculous allegations on their merits is relatively easy: Obama's voting record on issues pertaining to Israel is impeccable. Amongst his supporters and contributors are prominent Chicago and New York Jewish community and civic leaders, and I assume there are many more in Los Angeles, Miami and elsewhere. He has never outlined a policy that Israelis may find incompatible with what they believe a pro-Israeli Mid-East policy should be. In fact, Sen. Obama's essay in Foreign Affairs is balanced and contains absolutely no policy prescriptions anyone in their right mind can define as 'anti-Israeli'...The point is, an American president is 'Pro-Israel' when he profoundly appreciates the basic friendship with Israel, when he respects Israel as a democracy, when he truly believes in Israel as an idea and an enterprise. When his core value system and strategic outlook is similar to that of Israelis. In this respect, if Barack Obama is not 'pro-Israel', then neither are most Israelis." [Jerusalem Post, Alon Pinkas, 1/16/08]

Rabbi Arnold Jacob Wolf: Obama "Offers What America, Israel, And The Jewish Community Need." Rabbi Arnold Jacob Wolf, a rabbi emeritus at Chicago's KAM Isaiah Israel said, "I've worked with Obama for more than a decade, as has my son, a lawyer who represents children and people with disabilities. He has admired Obama's dedication and skill as he worked on issues affecting our most vulnerable citizens. Obama is no anti-Semite. He is not anti-Israel. He is one of our own, the one figure on the political scene who remembers our past, and has a real vision for repairing our present. Barack Obama is brilliant and open-hearted; he is wiser and more thoughtful than his former minister. He offers what America, Israel, and the Jewish community need: a US President willing to ask hard questions, and grapple with difficult answers. I am very proud to be his neighbor. I hope someday to visit him in the White House." [The Jewish Week, 3/19/08]

RHETORIC: But because Obama is relatively new on the national political scene, and new to foreign policy questions such as the long-simmering Israeli-Palestinian conflict, both sides have been looking closely for clues to what role he would play in that dispute. [Los Angeles Times, 4/10/08]


REALITY: OBAMA HAS A LONG HISTORY OF SUPPORT FOR ISRAEL

2000: Obama Said That The US Must Be Israel's Ally In Her Quest For Peace And That "Israel Can Take Risks For Peace Only Because Of Unwavering American Support." A CityPAC questionnaire read in part, "Throughout its history, Israel has been anxious to make peace with its Arab neighbors. If successful, the current peace process is a potential opportunity for Israel to increase its security, normalize relations with its neighbors, and create a more stable and prosperous Middle East. Resolution of the conflict depends on direct negotiations between the parties based on mutual respect and recognition. The United States' commitment to Israel must continue so Israel can negotiate with its former and current adversaries from a position of strength. Senator Obama believes that Israel can take risks for peace only because of unwavering American support." [CityPAC Questionnaire, 2000 Congressional Primary]

2002: Obama Passed A Resolution That Condemned Terrorist Attacks Against Israel; Called On Arafat To Put An End To Terrorist Attacks "Which Emanate From Areas Under His Jurisdiction." Obama sponsored and passed a resolution that stated that the Israeli-Palestinian conflict has entered a new phase of terrorism against Israeli civilians; and whereas The United States of America is committed to the safety and security of its citizens everywhere; and whereas the United States of America has made it a national priority to put an end to the scourge of such barbaric terror attacks; therefore, be it resolved that the Members of the Illinois State Senate wish a speedy recovery to the above-mentioned citizens as well as the others wounded in the recent barbaric attack; and be it further resolved that we express our collective outrage at the encouragement, support, and praise given to such terrorists and terror attacks; and be it further resolved that we call upon Palestinian Authority Chairman, Yassar Arafat, to put an end to all such encouragement, support, and praise for these terror attacks, which emanate from areas under his direct jurisdiction; and be it further resolved that the Members of the Illinois State Senate support the policy of the United States government in resisting terrorism throughout the world, and in seeking peace for Israel and its neighboring nations seeking a permanent peace accord; and be it further. [92nd GA, SR 346, Adopted 4/18/02]

2002: Obama Voted To Allow The State Of Illinois To Invest In Israeli Bonds.
Obama voted to amend the Deposit of State Moneys Act to provide that the State Treasurer may invest in bonds, notes, debentures, or other similar obligations of a foreign government that are guaranteed by the full faith and credit of that government as to principal and interest, but only if the foreign government has not defaulted and has met its payment obligations in a timely manner on all similar obligations for a period of at least 25 years immediately before the time of acquiring those obligations. HB4159 gives the state treasurer increased flexibility in the investment of money in the state treasury that is not needed for current expenditures. According to a press release, "HB4159 provides more stringent requirements for foreign investments than domestic government investments, providing additional guides to the state treasurer while increasing the opportunity for the development of international economic partnerships. While the language of HB4159 allows investments in all foreign governments who meet the specified criteria, HB4159 was designed to provide the constitutional authority for the treasurer to invest in Israeli bonds. [92nd GA, HB 4159, 3R P 49-1-4, 5/8/02; PA 92-0546, 6/13/02; Press Release, 6/13/02]

2004: Obama Said "Our First And Immutable Commitment Must Be To The Security Of Israel." The Chicago Daily Herald reported, "'Our first and immutable commitment must be to the security of Israel, our only true ally in the Middle East and the only democracy,' Obama said in a July speech to the Chicago Council on Foreign Relations." [Chicago Daily Herald, 10/18/04]

2006: Obama Cosponsored And Passed A Resolution Endorsing Israel's Right To Self-Defense And Condemning Hamas And Hezbollah. In 2006, Obama cosponsored a resolution condemning Hezbollah and Hamas and their state sponsors and supporting Israel's exercise of its right to self-defense. The resolution (1) reaffirmed steadfast support for Israel, (2) supports Israel's right of self-defense and its right to take appropriate action to deter aggression by terrorist groups and their state sponsors, (3) urges the President to continue to fully support Israel in exercising its right of self-defense in Lebanon and Gaza, (4) calls for the immediate and unconditional release of Israeli soldiers held captive by Hezbollah or Hamas, (5) condemns the governments of Iran and Syria for their continued support for Hezbollah and Hamas and holds these governments responsible for the acts of aggression carried out by Hezbollah and Hamas against Israel. [S. Res 534, Passed/agreed to in Senate, 7/18/06]

2006: Obama Cosponsored And Passed The Palestinian Anti-Terrorism Act Which Would Discourage International Aid To Hamas Unless It Recognizes Israel, Disarms And Renounces Violence.
In 2006, Obama cosponsored the Palestinian Anti-Terrorism Act of 2006, which: (1) States that it shall be U.S. policy to support a peaceful, two-state solution to the conflict between Israel and the Palestinians in accordance with the Performance-Based Roadmap to a Permanent Two-State Solution to the Israeli-Palestinian Conflict (Roadmap), and oppose those organizations, individuals, and countries that support terrorism and violently reject such two-state solution; (2) provides assistance to the Hamas-controlled PA only during a period for which a presidential certification has determined that no PA ministry, agency, or instrumentality is controlled by Hamas unless the Hamas-controlled PA has publicly acknowledged the Jewish state of Israel's right to exist and the Hamas-controlled PA has made demonstrable progress toward purging from its security services individuals with ties to terrorism. [S. 2370, Became Public Law No: 109-446, 12/21/06]

2007: Obama Spoke With Prime Minister Olmert As Annapolis Talks Began, Reiterated His Commitment To Israel's Security As The Basis For Peace Negotiations. Obama said in a release, "Annapolis is a hopeful development because Israelis and Palestinians are engaged in serious discussions again and the countries of the region are involved, and I commend Prime Minister Olmert and President Abbas for making the effort. I spoke with Prime Minister Olmert today, and assured him of my strong support for this effort and my unshakeable commitment to Israel's security as a core principle as negotiations move forward. The Administration deserves credit for finally trying to use presidential diplomacy to bring the parties together. It's a big change from the last six and a half years, when President Bush badly neglected this conflict. Recognizing the complexity of the issues under discussion and the importance of the conflict, it is my hope that this conference is just the start of a sustained push by the United States, the Israelis and the Palestinians to achieve the goal of two states living side-by-side in peace and security." [Press Release, 11/27/07]

2008: Obama Said Israel Was Among America's "Most Important Allies And Their Security Is Sacrosanct." The Jerusalem Post reported, "While discussing issues of anti-Semitism, Obama said: 'One of the reasons why so many of my supporters come from the Jewish community...is that I have been a stalwart friend of Israel and supported the special relationship we enjoy with it... They are among our most important allies and their security is sacrosanct.'" [Jerusalem Post, 2/27/08]


RHETORIC: Last year, for example, Obama was quoted saying that 'nobody's suffering more than the Palestinian people.' The candidate later said the remark had been taken out of context, and that he meant that the Palestinians were suffering "from the failure of the Palestinian leadership [in Gaza] to recognize Israel" and to renounce violence. [Los Angeles Times, 4/10/08]

REALITY: OBAMA DID NOT NEED TO CLARIFY HIS STATEMENTS BECAUSE THEY WERE ACCURATE IN THE FIRST PLACE

Des Moines Register Published Full Obama Remark, Clarifying Context. Obama said, "Now, in the interim, nobody's suffering more than the Palestinian people from this whole process. And I would like to see - if we could get some movement from Palestinian leadership - what I'd like to see is a loosening up of some of the restrictions on providing aid directly to the Palestinian people." [Des Moines Register, 5/3/07]

Baltimore Sun: Obama Said That Cause Of Palestinian Suffering Was Their Own Leadership. The Baltimore Jewish Times reported that Obama "went on to say that the cause of that suffering was the Palestinians' own terror-sponsoring leadership. But the damage had been done...Mr. Obama, like so many others, is deemed a threat to Israel despite consistent support for the positions of pro-Israel groups. His sin: advocating other positions that may not be on the current talking points of pro-Israel groups, but which are consistent with official Israeli and U.S. policy." [Baltimore Jewish Times, 3/23/07]

New York Times Issued A Correction On Obama's Position On Middle East Peace, Saying That Obama Blamed Hamas, Not Israel. The correction read, "An article yesterday about competition for Jewish support between Senators Hillary Rodham Clinton and Barack Obama incorrectly described Mr. Obama's views about the culpability for stalled peace talks between the Palestinians and Israelis. Mr. Obama blames Hamas, which controls much of the Palestinian government, for the stalled peace talks; he does not blame Israel." [New York Times, 3/15/07]


RHETORIC: Ali Abunimah, a Palestinian rights activist in Chicago who helps run Electronic Intifada, said that he met Obama several times at Palestinian and Arab American community events. At one, a 2000 fundraiser at a private home, Obama called for the U.S. to take an 'even-handed' approach toward Israel, Abunimah wrote in an article on the website last year. He did not cite Obama's specific criticisms. Abunimah, in a Times interview and on his website, said Obama seemed sympathetic to the Palestinian cause but more circumspect as he ran for the U.S. Senate in 2004. At a dinner gathering that year, Abunimah said, Obama greeted him warmly and said privately that he needed to speak cautiously about the Middle East. Abunimah quoted Obama as saying that he was sorry he wasn't talking more about the Palestinian cause, but that his primary campaign had constrained what he could say. Obama, through his aide Axelrod, denied he ever said those words, and Abunimah's account could not be independently verified. [Los Angeles Times, 4/10/08]

REALITY: ED LASKY SAID ABUNIMAH WAS NOT A RELIABLE SOURCE, KHALIDI HIMSELF SAID OBAMA WAS NEVER SUPPORTIVE OF THE PALESTINIAN CAUSE

Ed Lasky: Abunimah Was Not "The Most Reliable Source." Lasky wrote, "True, Abunimah may not be the most reliable source..." [American Thinker, 3/22/07]

Rashid Khalidi: Obama Was Never Supportive Of The Palestinian Cause. The New York Daily News reported, "Obama got help from an unlikely source yesterday when pro-Palestinian Prof. Rashid Khalidi denied a report that Obama used to be sympathetic to the Palestinian cause and had recently shifted his stance to pro-Israel. Khalidi spoke to the Daily News to rebut a report on a pro-Palestinian blog that was circulated by Clinton supporters. The blog, the Electronic Intifada, offered no evidence that Obama used to be supportive of the Palestinian cause, but cited private conversations, including one at a 2000 Obama fund-raiser hosted by Khalidi. Khalidi, now head of Columbia University's Middle East Institute, said he hosted the fund-raiser because he was friends with Obama while the two lived in Chicago." [New York Daily News, 3/6/07]

RHETORIC: "Nationally, Obama continues to face skepticism from some Jewish leaders who are wary of his long association with his pastor, the Rev. Jeremiah A. Wright Jr., who had made racially incendiary comments during several sermons that recently became widely known. Questions have persisted about Wright in part because of the recent revelation that his church bulletin reprinted a Times op-ed written by a leader of Hamas." [Los Angeles Times, 4/10/08]

REALITY: OBAMA "STRONGLY DISAGREES" WITH WRIGHT ON ISRAEL

Obama "Strongly Disagrees" With Wright Position On Israel. "Wright remains Obama's pastor and friend, [Obama spokeswoman Jen Psaki] said, but they do not see eye to eye on every issue. Obama, she said, 'strongly disagrees with any portrayal of the Israeli-Palestinian conflict that advocates divestment from Israel or expresses anything less than strong support for Israel's security.'" [Christian Science Monitor, 7/16/07]

Obama Said That Wright Had A "Profoundly Distorted" View Of America, Including The Incorrect View That The Problems In The Middle East Were Rooted In "Actions Of Stalwart Allies Like Israel" As Opposed To "Hateful Ideologies Of Radical Islam." Obama said, "But the remarks that have caused this recent firestorm weren't simply controversial. They weren't simply a religious leader's effort to speak out against perceived injustice. Instead, they expressed a profoundly distorted view of this country - a view that sees white racism as endemic, and that elevates what is wrong with America above all that we know is right with America; a view that sees the conflicts in the Middle East as rooted primarily in the actions of stalwart allies like Israel, instead of emanating from the perverse and hateful ideologies of radical Islam." [Speech, 3/18/08]

April 03, 2008

The Pritzkers and Superior Bank (Updated)

Obama Campaign Statement
"Penny Pritzker was never accused of any wrongdoing nor did she receive compensation in relation to the closing of Superior Bank in 2001, and instead of walking away as millions of homeowners and stockholders suffered, the Pritzker family entered into a voluntary settlement and agreed to pay the government $460 million to defray its losses. Former FDIC Chairman William Isaac said he had 'never known any investor in a failed bank to take responsibility as the Pritzkers have done.' Senator Obama believes that the current housing crisis was caused by lax regulation and a system that put the interests of corporations before the interests of homeowners and investors and he has proposed an aggressive plan to step up the regulation of our financial markets to restore fairness and balance to our economy and to prevent a housing crisis of this scale from occurring again."


Penny Pritzker Statement
"I regret that Superior Bank failed in 2001. I was chair of the bank from '91-94 and over those years, the bank achieved high ratings from the Office of Thrift Supervision. Superior's failure was complex. In short, the bank failed in 2001 because regulators concluded that the valuation of certain assets in Superior's financial statements, which had been audited by Ernst & Young for many years and previously approved by regulators, was overstated and as a result the bank was not capitalized sufficiently. My family voluntarily agreed to pay the FDIC $460M to help defray costs incurred by the government and other losses in connection with the bank's closure. We did this without litigation or any allegation by federal regulators of wrongdoing. I am proud of how my family responded to this situation."


CHICAGO SUN-TIMES GETS THE FACTS WRONG

The Pritzker Family Helped Buy Lyons Savings Bank, not Clyde; The Government Was Looking For Buyers To Alleviate the Savings and Loan Crisis. The Chicago Sun-Times wrote, "The Pritzker family bought the former Clyde Savings and Loan with partner Alan Dworman in 1988." As the Chicago Tribune reported in 1989, "Lyons Savings Bank, which got a new owner at year's end, has a new name. It will be called Superior Bank FSB, said President Sandra Johnigan. The Hinsdale based thrift was purchased by Coast-to-Coast Financial Services, owned by the Pritzker family." In addition, the Pritzker family was stepping in to buy a Bank that the Federal Savings and Loan Insurance Corp. were desperate to sell; "FSLIC officials have defended the December 1988 deals, saying since the agency did not have the money to liquidate failed institutions and pay off depositors, providing incentives was the only way to sell the ailing S&Ls." The Journal of Accountancy noted, "Before the enactment of FIRREA, the FSLIC was the federal insurer of deposits of most savings and loan associations. It also served as receiver for failed S&Ls. As failures increased in the 1980s, it became necessary for the FSLIC to find ways to resolve them other than liquidating the institutions and paying off depositors. The FSLIC began to look for acquirers, including supposedly healthier institutions, but found it had to assist the acquirers because the institutions being acquired had assets of uncertain quality or negative net worth...At the end of 1988, the FSLIC rushed to complete pending transactions by year end, when important tax benefits to acquirers would expire and FSLIC costs would increase. From Thanksgiving through December, the FSLIC closed acquisitions of 35 thrift institutions at a cost itthen estimated to be $27.6 billion. In January 1989, House Banking Committee members, disturbed by the cost of the FSLIC's year end deals, considered introducing a resolution that FSLIC assistance obligations were not backed by the full faith and credit." [Chicago Sun-Times, 4/28/08; Chicago Tribune, 4/27/98; Crains Chicago Business, 10/1/1990; Journal of Accountancy, 2/1/1991]


THE PRITZKERS DID MORE THAN ANY OTHER BANK OWNER IN HISTORY TO SETTLE THE CASE, VOLUNTARILY SETTLING AND PAYING HALF A BILLION DOLLARS

Forbes: The Pritzkers Agreed To Pay $460 Million; "No Bank Owner In History Had Ever Offered Anything Close To That To Settle A Case." Forbes reported, "The Pritzkers initially seemed confident, offering in July 2001 to infuse the bank with $210 million. But by December, with details of Superior's losses under increasing scrutiny, the family was forced to open its checkbook, agreeing to shell out $460 million over 15 years. No bank owner in history had ever offered anything close to that to settle a case." [Forbes, 9/30/02]

Former FDIC Chairman: "I've Never Known Any Investor In A Failed Bank To Take Responsibility As The Pritzkers Have Done." Former FDIC Chairman William Isaac wrote in a Letter to the Editor, "I represented the Pritzkers in their discussions with the FDIC after Superior Bank failed. The family decided to stand behind its investment, ultimately agreeing to pay the FDIC $460 million over a 15-year period, without interest. This is roughly equivalent, on a net present value basis, to the amount the family offered to contribute to keep Superior from failing. I served as FDIC chairman during the 1980s banking crisis. I've never known any investor in a failed bank to take responsibility as the Pritzkers have done. " [Forbes, William Isaac Letter to the Editor, 10/14/02]

The FDIC Lawsuit Against Ernst & Young Didn't "Implicate Superior's Owners Or Management" And The Complaint Went "Out Of Its Way To Sing The Pritzkers' Praises." "The FDIC's allegation against Ernst & Young made big headlines over the weekend. It seeks $2 billion in damages and claims the firm hid accounting errors at Superior to avoid a scandal that might have interfered with the $11 billion sale of Ernst & Young's consulting group in June 2000. But the FDIC's complaint doesn't implicate Superior's owners or management. In fact, it goes out of its way to sing the Pritzkers' praises." [Forbes, 11/5/02]

With The Commitment To Pay $460 Million To The FDIC, The Losses Have Far Exceeded Any Dollars They Received Prior To The Bank’s Failure." Kevin Poorman, an attorney for Pritzker Realty said, "Pritzker business interests lost a substantial amount of money in connection with their indirect investment in Superior Bank. Pritzker business interests owned 50% of the holding company of the bank and never fully recouped their investment. With the commitment to pay $460M to the FDIC, the losses have far exceeded any dollars they received prior to the bank's failure." [Kevin Poorman Statement]

Each Of The 1400 Depositors Who Had More Than $100,000 On Deposit In Superior When It Failed "Has Received Substantially All Of Such Depositor’s Monies." "Each of the 1400 depositors who had more than $100,000 on deposit in Superior when it failed has recovered substantially all of such depositor's monies. To date, each has received $100,000, plus 69% of the uninsured amount of their deposits (i.e., amounts in excess of $100,000). These depositors will continue to receive their lawful pro rata share of future recoveries, including recoveries from monies to be paid by Pritzker business interests under their agreement with the FDIC." [Kevin Poorman Statement]


ERNST AND YOUNG DID NOT PERFORM PROPER OVERSIGHT AND ACCOUNTING

December 2005: Ernst & Young Paid FDIC And Pritzkers in Settlement For Faulty Accounting. American Banker reported, "Another recent settlement ended a long-standing case involving the Pritzkers. The failure in 2001 of Superior Bank, which they co-owned, had been blamed in part on faulty accounting. In December, Ernst & Young LLP agreed to a $125 million settlement with the Office of Thrift and Supervision and the Federal Deposit Insurance Corp. The Pritzkers will get $31.25 million." [American Banker, 1/20/05]

Ernst And Young Inadequately Oversaw The Books Of Superior. "Ernst & Young LLP, the auditing firm accused of inadequately overseeing the books of now-failed Superior Bank FSB, also received consulting fees from the bank that totaled at least twice as much as the fees it received for its accounting services, a federal regulator said. 'It was a direct conflict,' said Gaston Gianni, inspector general for the Federal Deposit Insurance Corp., in testimony to the Senate Banking Committee Thursday. At the hearing, the FDIC, the Treasury Department and the General Accounting Office placed the blame for Superior's failure on poor management, lax oversight by regulators and inadequate oversight by Ernst & Young. The only committee member present was its chairman, Sen. Paul Sarbanes (D-Md.), who likened Superior's downfall to another corporate failure attracting close congressional scrutiny." [Chicago Tribune, 2/8/02]

Forbes: "Improper Accounting That Had Overstated the Thrift's Assets by $420 Million." "Superior, a suburban Chicago savings and loan, collapsed in early 2001 under the weight of half a billion dollars in subprime loan defaults and improper accounting that had overstated the thrift's assets by $420 million." [Forbes, 11/5/02]

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