Creator:
Herbert M. Sandler

Pro Publica ("For the Public" in Latin) is the creation of partisan Democrat contributors Herbert M. Sandler and Marion O. Sandler, the former chief executives of the Golden West Financial Corporation, based in California, which was one of the nation’s largest mortgage lenders and savings and loans. They have committed $10 million a year to the project, while various foundations have provided smaller amounts. Mr. Sandler serves as chairman of Pro Publica. Mrs. Sandler is not involved except as a donor.

Golden West Financial, which operated branches under the name World Savings Bank with over $125 billion in assets and 11,600 employees, was the second largest savings and loan in the United States, and was bought by Wachovia for $25.5 billion on May 7, 2006, giving Wachovia an additional 285-branch network spanning 10 states, including California, where Golden West held $32 billion in deposits and operated 123 branches. The Sandlers remain on the board at Wachovia.

The Sandlers are credited with the invention of the "Pick-A-Pay" mortgage that allowed borrowers to pay less than the interest due on their loan each month -- which increased the total amount owed by the borrower. Analysts place the blame on the near failure of Wachovia in the fall of 2008 on the "Pick-A-Pay" mortgage portfolio Wachovia acquired from the Sandler's Golden West Financial. Some have accused the Sandlers of hypocrisy for denouncing predatory lenders and the poor underwriting practices of other lenders.

The Sandlers were the primary funders of the Center for American Progress, a liberal think-tank and activist organization run by John Podesta, Barack Obama's transition team leader, who previously served as chief of staff to President Bill Clinton. In 2004, the Sandlers, along with Democratic donors George Soros and Peter Lewis established America Votes "to coordinate various get-out-the-vote drives during the 2004 election." Marion Sandler sits on the board of directors of Podesta's Center for American Progress.

The Sandlers also fund:

• Center for Biological Diversity
• Turtle Island Restoration Network (de-developing America)
• National Environmental Trust (green public relations firm)
• Moveon.org
• America Votes
• ACORN
• Center for American Progress
• Human Rights Watch
• American Civil Liberties Union (ACLU)
• Foundation for National Progress (publisher of Mother Jones)
• People for the American Way Foundation

Full story in Ron Arnold's Freezing in the Dark.

Slate journalist Jack Shafer raised questions about Pro Publica's ability to provide independent nonpartisan journalism given the nature of Sandler's other political donations which include "giving hundreds of thousands of dollars to Democratic Party campaigns." The concern was borne out in a vicious December 2008 attack on natural gas drilling that followed the Democrat no-American-energy agenda.