Penny Pritzker

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Penny Pritzker
Penny Pritzker official portrait.jpg
38th United States Secretary of Commerce
Incumbent
Assumed office
June 26, 2013
President Barack Obama
Deputy Bruce H. Andrews
Preceded by Cameron Kerry (Acting)
Personal details
Born (1959-05-02) May 2, 1959 (age 55)
Chicago, Illinois, U.S.
Political party Democratic
Spouse(s) Bryan Traubert
Children 2
Alma mater Harvard College
Stanford University

Penny Sue Pritzker (born May 2, 1959) is an American business executive, entrepreneur, civic leader, and philanthropist who is currently serving as the 38th United States Secretary of Commerce. She is the founder of PSP Capital Partners and Pritzker Realty Group.[1] She is also co-founder of Artemis Real Estate Partners.[2] She is a member of the Pritzker family.

In 2012, Chicago magazine named her one of the 100 most powerful Chicagoans.[3] In 2011, the Forbes 400 list of America's wealthiest showed her as the 263rd richest person in the U.S., estimated net worth of US $1.8511 billion,[4] and the world's 651st richest person. In 2009, Forbes named Pritzker as one of the 100 most powerful women in the world.

Early life[edit]

Pritzker was born in Chicago to a Jewish family[5] in 1959, the daughter of Sue (née Sandel)[6] and Donald N. Pritzker (1932–1972), one of the co-founders of Hyatt hotels, which grew dramatically under his leadership as President from 1959 until his death in 1972. Pritzker is a member of the Pritzker family of Chicago, an influential business family. She attended Castilleja School until 1977.[7][8] She earned an A.B. in Economics from Harvard College in 1981 and both a J.D. and an M.B.A. from Stanford University in 1984.[9] She has two brothers: Anthony Pritzker and Jay Robert Pritzker.

Career highlights[edit]

  • 1987 – founded Classic Residence by Hyatt, now called Vi
  • 1991 – created Pritzker Realty Group
  • 1991 – served as chairperson of Superior Bank of Chicago (until 1994)
  • 1998 – co-founded The Parking Spot, the fastest growing company in off-site airport parking management, with CEO Martin Nesbitt[10]
  • 2005 – served as "Non-Executive" Chairperson of the Board of TransUnion, LLC (until 2012)[11]
  • 2010 – co-founded Artemis Real Estate Partners, a real estate investment management company, with CEO Deborah Harmon
  • 2012 – founded PSP Capital Partners[12]

Superior Bank[edit]

In 1989, Ms. Pritzker's late uncle, Jay Pritzker, purchased a 50% stake in Hinsdale, Illinois-based Superior Bank of Chicago from the Federal Deposit Insurance Corporation, which had taken over the bank when it failed.[13] Penny Pritzker was Superior's chairperson from 1991–1994. In 1993, the bank "embarked on a business strategy of significant growth into subprime home mortgages," according to a report by the United States Treasury Department.[13] In 2000, it became clear the bank was faltering. In the months leading up to 2001, the Pritzkers tried to work out a recapitalization plan.[13] In July 2001, FDIC seized the bank after the recapitalization could not be resolved.[14][15] Subsequently, the Pritzker family reached an agreement with regulators to pay $460 million.[13][16][17][18]

According to the FDIC, by 2011, the uninsured depositors of Superior had each received 81% of their uninsured monies, in addition to the $100,000 each previously received of their insured amount.[19] Industry experts have criticized the Pritzkers in regard to Superior.[20] Consumer advocates and government investigators asserted Superior "engaged in unsound financial activities and predatory lending practices."[13] Responding to the Wall Street Journal, Pritzker noted she had no ownership in the bank, either direct or indirect, and that the bank's reasons for failure "were complex, including changes in accounting practices, auditing failures, reversals in regulatory positions and general economic conditions."[13] She said the bank complied with "fair lending laws" and ethical business practices.[13] A 2001 Business Week article described the bank's other owner, Alvin Dworman, as the more dominant partner in its operation as a result of agreements made by Jay Pritzker.[14] Quoted in the New York Times, a Pritzker family friend observed Pritzker was trapped in a deal of her uncle's making: "Penny got sucked into this…this was really the legacy of Jay"[21] Jay Pritzker died in 1999.[22]

Government and political involvement[edit]

Pritzker was a member of the President's Council on Jobs and Competitiveness. She also served on the President's Economic Recovery Advisory Board.

She was national co-chair of Obama for America 2012 and was the national finance chair of President Obama's presidential campaign in 2008.[23] A campaign under her direction reached out to small donors. On November 20, 2008, CNN reported that Pritzker was Barack Obama's top choice for Commerce Secretary, quoting "multiple" unnamed sources.[24] However, it was later reported that Pritzker took herself out of the running.[25][26][27] According to the Chicago Tribune, she withdrew her name from consideration "due to obligations to her family, for whom she was still overseeing billions in assets, and the financial crisis, which was putting some of those assets at risk."

Pritzker has contributed to numerous campaigns. Among the recipients have been the presidential campaigns and exploratory committees, including those of George W. Bush, Joe Lieberman, Bill Bradley, Rudy Giuliani, John McCain (2000), Al Gore, John Kerry and Hillary Clinton.[28] On July 2, 2008, Ms. Pritzker and her husband hosted a $28,500 per plate fundraiser for Mr. Obama's campaign in Chicago with Warren Buffett and his wife, and Obama advisor Valerie Jarrett.[29]

She was also on the Board of Directors of the Council on Foreign Relations,[30] a nonpartisan think tank focused on world affairs and U.S. foreign policy.

Secretary of Commerce[edit]

Pritzker was nominated as United States Secretary of Commerce by President Barack Obama on May 2, 2013.[31][32] After an uneventful confirmation hearing on May 23, 2013,[33] Pritzker was confirmed by the full Senate on June 25, by a vote of 97 to 1.[34] Pritzker was sworn in as Secretary on June 26, 2013.

Civic and philanthropic activities[edit]

Pritzker is involved in public education. She was a member of the Chicago Board of Education and is past chair of the Chicago Public Education Fund.[35]

Pritzker was Advisory Board Chair of Skills for America's Future (SAF), a policy initiative of the Aspen Institute.[36] Pritzker is a former chair of the Museum of Contemporary Art, Chicago.[37]

On March 26, 2014, Elle honored Pritzker, with others, at Italian Embassy in the United States during its annual “Women in Washington Power List.”[38]

See also[edit]

References[edit]

  1. ^ "PSP Capital Partners". Retrieved October 10, 2012. 
  2. ^ "Artemis Real Estate". 
  3. ^ Bailey, Berstein, Burke, Colburn, et al (March 2012). "100 Most Powerful Chicagoans". Chicago Magazine. 
  4. ^ "The 400 Richest Americans: #263 Penny Pritzker". Forbes. September 2011. Retrieved October 23, 2011. "Net worth: $1.7 billion" 
  5. ^ Jewish Daily Forward: "Penny Pritzker, Jewish Hotel Heiress, Tapped for Commerce Job – Mike Froman Gets Trade Representative Nod" May 2, 2013
  6. ^ "Mishap kills Sue Pritzker, widow of Hyatt Hotel founder, at age 49". Chicago Tribune. May 8, 1982. 
  7. ^ DeBare, Ilana. "Prominent Alumnae of Girls' Schools". Where Girls Come First. Archived from the original on July 10, 2007. Retrieved November 27, 2007. 
  8. ^ "Around Town". Palo Alto Weekly. November 9, 2005. Retrieved May 2, 2013. 
  9. ^ Stanford Lawyer. Law.stanford.edu. Retrieved on December 4, 2011.
  10. ^ Staff (2008). "Penny S. Pritzker – Biography". Penny Pritzker – Official website. Retrieved November 19, 2008. 
  11. ^ Prospectus. Sec.gov. Retrieved on August 12, 2013.
  12. ^ "PSP Capital Partners". 
  13. ^ a b c d e f g Emshwiller, John R. (July 21, 2008). "A Top Obama Fund-Raiser Had Ties to Failed Bank". The Wall Street Journal. pp. A10. Retrieved July 21, 2008. 
  14. ^ a b Barboza, David; Woellert, Lorraine (August 7, 2001). "A Partnership Frays After An S.& L. Fails; In Laying Blame, Trying to Sort Out One Deal Maker's Complicated Legacy". The New York Times. Retrieved July 21, 2008. 
  15. ^ Allison, Melissa; Neikirk, William (July 27, 2001). "Regulators close Chicago-area bank". The Chicago Tribune. Retrieved July 21, 2008. 
  16. ^ "Judge rules family, others cannot be sued concerning Superior Bank's collapse". Knight Ridder/Tribune Business News. September 28, 2004. 
  17. ^ David Mobert, Breaking the Bank, In These Times November 8, 2002
  18. ^ John W. Courtney et al. v. Neal T. Halleren et al. (485 F.3d 942). Bulk.resource.org. Retrieved on December 4, 2011.
  19. ^ "Federal Deposit Insurance Corporation". Failed Bank Information. 
  20. ^ Pallasch, Abdon M. (April 28, 2008). "Obama's subprime pal". Chicago Sun-Times. 
  21. ^ Barboza, David (August 7, 2001). "A Partnership Frays After An S.& L. Fails; In Laying Blame, Trying to Sort Out One Deal Maker's Complicated Legacy". The New York Times. Retrieved July 21, 2008. 
  22. ^ The Economist: "Jay Pritzker, pioneer of the modern hotel chain, died on January 23rd, aged 76" January 28, 1999.
  23. ^ Anne E. Kornblut and Matthew Mosk (April 5, 2008). "Obama's Campaign Takes In $25 Million,He Nearly Matches Clinton, With Twice as Many Donors" (printable). Washington Post. Retrieved September 24, 2008. 
  24. ^ "Sources: Pritzker, Napolitano being vetted for Cabinet". CNN. November 20, 2008. Retrieved November 20, 2008. 
  25. ^ Allen, Mike (November 20, 2008). "Pritzker turns down Commerce". Politico. Retrieved February 12, 2013. 
  26. ^ Gloria Borger, Jason Carrol, Ed Henry, Jamie McIntyre, John King, Ed Hornick, Don Lemon, Jessica Yellin (November 20, 2008). "Pritzker not a candidate for commerce secretary" (printable). CNN. Retrieved February 12, 2013. 
  27. ^ Knowlton, Brian (November 20, 2008). "Pritzker Withdraws From Cabinet Consideration". The New York Times. Retrieved May 22, 2010. 
  28. ^ Penny Pritzker. Nndb.com. Retrieved on December 4, 2011.
  29. ^ MICHAEL LUO and CHRISTOPHER DREW (July 3, 2008). "Obama Picks Up Fund-Raising Pace". Washington Post. Retrieved February 12, 2013. 
  30. ^ Penny S. Pritzker – Biography. Penny-pritzker.com. Retrieved on December 4, 2011.
  31. ^ Sweet, Lynn (May 2, 2013) "Obama nominates Chicago exec Penny Pritzker as commerce secretary", Chicago Sun-Times. Retrieved May 2, 2013.
  32. ^ Shear, Michael D. (May 2, 2013) "Obama Nominates Pritzker for Commerce Post", The New York Times. Retrieved May 2, 2013.
  33. ^ Penny Pritzker looks to be on path to confirmation – Tarini Parti. Politico.Com (May 23, 2013). Retrieved on August 12, 2013.
  34. ^ Penny Pritzker confirmed as Commerce secretary – Dan Berman. Politico.Com (June 26, 2013). Retrieved on August 12, 2013.
  35. ^ "CPEF". 
  36. ^ people "The Aspen Institute". Retrieved October 10, 2012. 
  37. ^ "MCA". 
  38. ^ Watters, Susan (March 26, 2014). "Gucci and Elle Honor Women in Washington Power List". WWD. Retrieved March 28, 2014. 

External links[edit]

Political offices
Preceded by
Cameron Kerry
Acting
United States Secretary of Commerce
2013–present
Incumbent
United States order of precedence (ceremonial)
Preceded by
Tom Vilsack
as Secretary of Agriculture
Order of Precedence of the United States
as Secretary of Commerce
Succeeded by
Thomas Perez
as Secretary of Labor
United States presidential line of succession
Preceded by
Tom Vilsack
as Secretary of Agriculture
9th in line
as Secretary of Commerce
Succeeded by
Thomas Perez
as Secretary of Labor