By Andrew Zajac
Chicago's Northern Trust Corp. now under fire for excessive merrymaking after collecting federal TARP money, earlier was under scrutiny for the favorable mortgage terms it granted to now-President Barack Obama when he bought his Hyde Park personal residence in 2005.
When they bought the $1.65 million property, the Obamas took out a $1.32 million mortgage for 5.67 percent.
At the time, jumbo mortgages in the Chicago area averaged 5.93 to 6 percent, according a Washington Post story detailing the transaction.
Judicial Watch, a conservative watchdog group, filed a complaint with the Federal Elections Commission alleging that the mortgage rate amounted to an illegal corporate campaign contribution by Northern Trust.
The FEC dismissed the complaint last month, ruling that the terms given the Obamas were in line with financing extended to similarly situated borrowers.
Northern Trust gave discounts to wealthy individuals like the Obamas in the hope of getting more of their banking and investing business, according to the FEC ruling.
Sort of like a supermarket loss leading with milk so you'll come into the store and maybe buy a t-bone. Sort of.
Judicial Watch president Tom Fitton said the organization hasn't decided if it will appeal the dismissal. For the moment, the FEC decision is available only through the Judicial Watch. That's because the FEC discloses its decision to the complaining party, then waits 30 days before posting findings on the agency web site.
Comments
How sad and petty the Republicans are. The Obamas got a better than AVERAGe mortgage because they were two highly-paid individuals with good credit applying for the loan. Barack Obama has always talked about how frugal he and Michelle were. This is much ado about nothing.
Posted by: Lolis | February 25, 2009 12:17 PM
Northern Trust is just a part of corporate culture that feels it is entitled to whatever it can get a hold of. They have been running the company into the ground for years and these morons do not deserve a penny of taxpayer dollars.
Posted by: JohnT | February 25, 2009 1:20 PM
The "average" of 5.93 to 6 per cent is just that - the average. Some will be higher, some will be lower. If you shop around, and have good credit, you can find a rate lower than the average.
The Obamas' 5.67 per cent doesn't sound out of line to this Republican. Frugal shoppers who obviously have the means to repay the loan - What's not for a bank to like and want to have their business?
Posted by: DaveB | February 25, 2009 1:46 PM
This Repuglican group is crying about .003% of a loan to Pres Obama?
One thing you can always depend on from Repugs, they have absolutely zero idea's in which to run on so you can always predict their campaign strategy. - smear the Dems.
Posted by: Mr. FACE | February 25, 2009 2:05 PM
He was a SENATOR running for OFFICE. He made $300 a month, which over the life of the 30-year loan, would be at least $108,000. He should have reported it to the Toothless FEC.
Posted by: Patriotsthink | February 25, 2009 2:31 PM
Even if this WERE a special deal--SO WHAT?
THE MORTGAGES AREN'T THE PROBLEM. IT'S THE STUCK ON STUPID WAR FOR OIL.
Posted by: continued by a prez who still uses the phrase clean coal | February 25, 2009 3:02 PM
Patriotsthink: Please don't forget that Obama's book (or was it two books at that point) was, and continues to be, very successful - the audiobook version even got a Grammy Award. So his Senate income and whatever Michelle earned wasn't their only source of income.
Posted by: Candia | February 25, 2009 4:50 PM
There are really two important issues here: (1) Does a bank like Northern Trust have the right to take taxpayer dollars and spend-as-usual, sponsoring golf tournaments and lavish entertainment? and (2) Does a bank like Northern Trust have the right to spend shareholder capital in the same ways? I think we're seeing one strain of the very "irrational exhuberance" that caused this Depression to begin with. And I think taxpayers AND shareholders should insist -- legally -- on much better deployment of their dollars.
Posted by: Danko | February 26, 2009 4:53 PM
Well of of course people that make more money and are more frugal with their money are going to get a better mortgage rate. The opposing party will try to a nickel and dime line about anything forever to tarnish Bararck Obama's credibility. You can tell how frugal Barack Obama is by the way he thinks he can manipulate the economy and still keep the same amount of money going into the War for Oil, ae... Iraq and Afghanistan. A good economy and a bad war will never mix Mr. President. Thank you for your great Economic Stimulus Bill, free health care and stimulus checks, but bring our troops home now.
Posted by: Kim | March 2, 2009 9:07 AM
It's a shame that this bank is spending so much in tax payer money on their golf tourney. That's unaceptable.
Their letter about this issue is so misleading. They claim the government required them to participate in the bailout? It's a bailout!!!!!
Here it is America!!! Your tax dollars at work!!!
Oh, and Obama got a good mortgage from them, who cares!
You all are slowly watching the demise of the middle class in America. We will be like Brazil soon, only upper and lower class, no middle class. Oh, but we will have national healthcare....
I'd rather keep my "change" in my pocket..... Looking forward to another election in 4 years....
Posted by: Gee | March 2, 2009 12:05 PM