Posted on 01/15/2014 5:19:47 PM PST by jazusamo
War On Banks: Attorney General Eric Holder has opened up a new front against car lenders and has forged an alliance with the Consumer Financial Protection Bureau to frame them for racism, too.
We don't use the term "frame" capriciously, certainly not like Holder uses the charge of racism.
His department and the president's new consumer credit watchdog agency, CFPB, have announced a new settlement with Ally Bank for nearly $100 million.
It's the largest fair lending deal against the auto industry and the third-largest ever to resolve charges of lending discrimination.
Throw in four new mortgage-lender settlements over equally groundless allegations — including last month's $35 million joint Justice Department-CFPB hit on Cleveland-based National City Bank — and the total financial industry shakedown by this administration now stands at an eye-popping $810 million.
In its complaint against Ally, Justice alleged that the bank "charged African-American borrowers more than white borrowers in interest-rate markups not based on creditworthiness or other objective criteria related to borrower risk."
It says a statistical analysis of loans conducted by CFPB researchers found a "disparity" of 29 basis points compared with rates charged "similarly situated" white borrowers.
The surcharge is so "statistically significant," it contends, it can't be a function of anything but racism.
Let's unpack that statement, because it contains a big load of rubbish.
For starters, Justice had to guess the race of Ally's black customers from Census data for black neighborhoods. The auto-finance industry does not report the race of borrowers like the mortgage industry.
(Excerpt) Read more at news.investors.com ...
typically 30 outta a hundred apps are bank buyable
execution aint everything! I like em!
barry and Ricky look VERY much at home in their new uniforms by the way
I need to find some high resolution photos of Mrs Holders lil son RIcky!!
I have a secret stash of Barry Soetero material by the way...
Now, if there were any justice in this world...
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