03-31-2008, 04:51 PM
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Clinton campaign head made $200,000 with subprime lender
Clinton campaign head made $200,000 with subprime lender
Quote:
Hillary Rodham Clinton's campaign manager, Maggie Williams, earned about $200,000 on the board of a Long Island subprime lender that charged prepayment penalties - a practice that Clinton, a critic of the subprime industry, now seeks to eliminate.
Williams, who took over the reins of Clinton's campaign in early February, served as a director on the board of the Woodbury-based Delta Financial Corp. from April 2000 until the firm declared bankruptcy in December, according to Securities and Exchange Commission records.
She was recruited by former New York City Deputy Mayor Bill Lynch, a Delta consultant. Her assignments were to create a new code of "best practices," and to improve the company's crisis management operation in the wake of state and federal predatory lending probes that resulted in a $12 million payout to borrowers.
Her hiring coincided with stepped-up Delta outreach efforts in minority communities, where the company made a large number of its loans, an initiative that included parties for homeless children and mortgage seminars in Brooklyn and Queens.
Williams, 53, isn't the only Clinton insider who made money from an industry the candidate has demonized. A month ago, The Wall Street Journal reported that Clinton ally and former HUD Secretary Henry Cisneros grossed more than $5 million in stock sales and board compensation from Countrywide Financial, one of the nation's largest subprime lenders.
Once a poster child for predatory practices, Delta's reputation improved substantially until it buckled, as executives avoided adjustable-rate mortgages for fixed-rate loans, which have fewer defaults.
To boost revenue in the absence of high-profit adjustable loans, the company charged relatively steep interest rates - 11 percent in 2007 - and levied higher-than-prime-loan closing costs.
And Delta assessed penalties to borrowers who paid off before their loans matured - a practice Clinton frequently decries on the campaign trail.
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Hypocrisy reigning supreme...
You would think the first thing Hillary would do is make sure her staff doesn't conduct business in ways she's rallying against...
But I guess loyalty supercedes ethics... 
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