108:, "But after paying $ 316 million of the interest-free debt, the family quietly struck a deal with the Federal Deposit Insurance Corp. (FDIC) in June 2011 to discount the balance in return for paying off the debt early. Ms. Sweet and Mr. Courtney are among 1,400 depositors still owed $ 10.3 million at the end of March, records show. The FDIC Insurance Fund is still out $ 296 million after paying off Superiorâs insured depositors. It is highly unlikely the remaining depositors or the FDIC will receive much more money since nearly all of the settlement funds have been paid out, according to records and interviews."
60:, who ran Superior from his New York office after Jay Pritzker's death in 1997. The Pritzkers and Dworman bought the failed Lyons Federal for the relatively modest price of $ 42.5 million, with each using a shell corporation to control half of Coast-to-Coast Financial Corporation (CCFC), a holding company created to own Superior.
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December 2001, the Pritzkers agreed to pay a record $ 460 million to the federal government to avoid being punished for the failure of Superior Bank FSB. It was a 15-year, interest-free settlement that granted the Pritzkers a share of the government's settlement with the bank's former accountants.
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Kaufman says many share in the blame for the mess-the bank's managers, directors, and auditors, as well as banking regulators-but he also wonders how the
Pritzkers, as co-owners, could have allowed it to happen. "One of the great mysteries to me is what the Pritzkers were up to, why they took these
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Superior Bank suffered as a result of its former high-risk business strategy, which was focused on the generation of significant volumes of subprime mortgage and automobile loans for securitization and sale in the secondary market. OTS found that the bank also suffered from poor lending practices,
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In July 2001, Superior was seized by federal banking regulators after the
Pritzkers reneged on a recapitalization program. The Pritzker family entered into a $ 460 million, 15 year, interest-free settlement in December 2001 to protect the family's business reputation and avoid civil forfeiture and
111:â'The depositors got nicked coming, going and after the fact,'â said Clinton Krislov, a lawyer who represents depositors whose accounts exceeded the $ 100,000 covered by FDIC insurance. â'The depositors have gotten all they will from the Pritzkers.'â
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George
Kaufman, a finance professor at Loyola University Chicago called Superior's failure "a tale of gross mismanagement," adding that " was engaged in relatively unethical practices, fancy-footwork accounting, playing it very close to the edge."
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claimed that those who controlled
Superior induced depositors to put money in the bank, âcorruptlyâ funneling money out of the bank to âfraudulentlyâ profit the owners. The lawsuit,
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litigation. At the time, Superior Bank was the largest bank failure in more than a decade. As of March 2012, former
Superior Bank depositors are still owed over $ 10 million.
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In June 2012, news reports revealed that the
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association that collapsed in July 2001 with some $ 2.3b in assets. It was co-owned by the
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In 2002 uninsured depositors filed federal class-action charges under the
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chances," he said. "It makes no sense given their wealth and visibility."
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John W. Courtney et al. v. Neal T. Halleren et al. (485 F.3d 942)
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OTS Closes
Superior Bank FSB; Hinsdale, Ill. Thrift is Insolvent
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Hyatt Hotel Family Will Pay $ 460 Million in S.& L. Case
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Failed Bank
Information: Superior Bank, FSB, Hinsdale, IL
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Superior opened in 1988 under conditions created by the
251:" Obama donors get deal; depositors get âstiffed againâ
137:7th Circuit of the United States Court of Appeals
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256:The Washington Times
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