Penny Pritzker

Penny Pritzker Biography

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. She's also co-founder of Artemis Real Estate Partners. She is a member of the Pritzker family.

In 2012, Chicago magazine named her one of the 100 most powerful Chicagoans. 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, and the world's 651st richest person. In 2009 Forbes named Pritzker as one of the 100 most powerful women in the world.

Pritzker was nominated to be the next United States Secretary of Commerce. She was confirmed by the United States Senate 97-1.

Biography

Born to a Jewish family in 1959, the daughter of Sue (née Sandel) 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. 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. She has two brothers: Anthony Pritzker and Jay Robert Pritzker.

Career highlights

1987 - founded Classic Residence by Hyatt, now called Vi.
1991 - created Pritzker Realty Group
1991 - chairman of Superior Bank, until 1994.
1998 " co-founded The Parking Spot, the fastest growing company in off-site airport parking management, with CEO Martin Nesbitt.

2005 - "Non-Executive" Chairman of the Board of TransUnion, LLC. Served in this position until 2012.
2010 - co-founded Artemis Real Estate Partners, a real estate investment management company, with CEO Deborah Harmon
2012 - founded PSP Capital Partners

Superior Bank

In 1989, Ms. Pritzker's late uncle, Jay Pritzker, purchased a 50% stake in Hinsdale, Illinois-based Superior Bank from the Federal Deposit Insurance Corporation, which had taken over the bank when it failed. Penny Pritzker was Superior's chairman 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. 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. In July 2001, FDIC seized the bank after the recapitalization could not be resolved. . Subsequently, the Pritzker family reached an agreement with regulators to pay $460 million.

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. Industry experts have criticized the Pritzkers in regard to Superior. Consumer advocates and government investigators asserted Superior "engaged in unsound financial activities and predatory lending practices." 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." She said the bank complied with "fair lending laws" and ethical business practices. 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. 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" Jay Pritzker died in 1999.

Breakup of Pritzker business interests

In 2004, siblings Liesel and Matthew Pritzker sued their father and other family members, claiming fraud and sought damages in excess of $6 billion. In 2005, the parties settled. Liesel and Matthew each received roughly $280 million and were given more control over other trusts valued at about $170 million each. "The Pritzkers as a singular unit no longer exists," according to a March 3, 2013 article in the Chicago Tribune. "A 10-year family agreement...wound down in December, 2011...each family member is now free to pursue his or her own interests..."

Government and political involvement

Pritzker is 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. 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. However, it was later reported that Pritzker took herself out of the running. 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. 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.

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

Secretary of Commerce nomination

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

Civic and philanthropic activities

Pritzker is involved in Chicago's public education system. She was a member of the Chicago Board of Education and is past chair of the Chicago Public Education Fund.

Pritzker is Advisory Board Chair of Skills for America's Future (SAF), a policy initiative of the Aspen Institute.

Pritzker is past chair of the Museum of Contemporary Art in Chicago.