Posted on 11/26/2014 6:52:33 AM PST by Whenifhow
The Justice Department’s massive mortgage settlements against two bank giants requires them to give millions to liberal advocacy groups, and House Republicans are trying to find out why.
House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and House Financial Services Chairman Jeb Hensarling asked Attorney General Eric Holder seeking details about who was involved in steering the funds from the Bank of America and Citigroup settlements this way, which they said was an unprecedented departure from other settlements.
“It seems that the alleged victims are not the primary beneficiaries of these multi-billion dollar settlements,” the House chairmen said in the letter. “Instead, the terms in the Justice Department’s two latest settlements look less like consumer relief and more like a scheme to funnel money to politically favored special interest groups.”
The two groups singled out by the congressmen were the National Council of La Raza andNeighborWorks America; these groups fund a national network of community organizers, according to the letter.
Justice Department spokesman Patrick Rodenbush told TheBlaze, “I can confirm DOJ has received the letter, but the department has no comment at this time.” The Justice Department did not immediately reply to phone and email inquiries from TheBlaze.
Citigroup reached a $7 billion deal with Justice in July, and Bank of America reached a $16 billion settlement in August.
The settlements provide incentives to give even more to the nonprofit groups.
Under the Citigroup settlement, a minimum of $50 million must be donated to community organizing groups as NeighborWorks and La Raza. Every dollar donated above the $50 million minimum, Citigroup earns a $2 credit off its its $2.5 billion consumer relief commitment, which makes up a portion of the $7 billion settlement.
The Bank of America settlement requires the bank to contribute $100 million to housing-related organizations, including counseling agencies, “legal aid” organizations and community development “non-profits.” For each dollar Bank of America gives to a nonprofit group, it gets a $2 credit off of its $7 billion consumer relief obligation.
Other types of consumer relief, such as loan modifications, earn only dollar-for-dollar credit. “This makes donations to activist groups far more attractive to banks than providing direct relief to injured consumers,” Goodlatte and Hensarling contend. “As a result, the settlements appear to serve as a vehicle for funding activist groups rather than as a means of securing relief for consumers actually harmed.”
The letter points out that the DOJ’s settlement with J.P. Morgan Chase last year included only direct forms of consumer relief. Further, while a settlement during the George W. Bush administration allowed any funds remaining to go to a third party, such funding was not earmarked or incentivized.
Among the questions the letter asks are, “Were non-profits that stood to gain involved in any manner in that decision? If so, which ones and to what extent?” and “Were any White House officials involved in the decision? If so, who and to what extent?”
FYI
The two groups singled out by the congressmen were the National Council of La Raza andNeighborWorks America; these groups fund a national network of community organizers,
They forced the banks to give loans to people that couldn’t afford them, then when the loans were defaulted the banks were again forced to compensate them.
Why?
‘Cause there’s a BIG chuncka money so LET’S JUST GIVE IT TO OUR FRIENDS!!!!
That’s WHY!
Viva Venezuela.
If the House Repubs think they are going to trace or track these billions and billions of dollars extracted from the banks (not that the banks don’t deserve a whacking) they are really fooling themselves. If the Repubs were smart, and that is of course a silly proposition, they may have obtained some overview of the disposition of the funds BEFORE the banks paid them. Months after they were paid, this is utterly laughable. But is typical of the kabuki theater that GOP congresspeople consistently do, to act like they are doing something useful when their aim is consistently off.
If we’re going to call lying your ass off “Grubering”, then we should call this “Issaing”
When Congress gets back in January they need to see that more than a few people go to jail for this nonsense. It’s extortion pure and simple, but with the heads of the companies being extorted going right along with the game.
Until liberals know they will be facing jail time, this nonsense will only get worse.
You have nailed it. Congress acts like all money is at the discretion of the Executive Branch. But all federal money is only released from the Treasury with Congress’ approval. They can approve, deny, and rescind any amount for anything at any time.
That is, if they had the motivation and cajones to do it.
I thought Congress passed spending bills which are signed or vetoed by the President.
La Raza is an organization much like ISIS. It wants to carve out a portion of Mexica and a portion of the US and create it’s own country. Why are we giving money to a terrorist group?
Settlement = Extortion
Oversight only works if the overseers can find out about it. With hundreds of thousands of disbursements every year, Congress only finds out about them long after the money has been disbursed.
Neat trick, eh ?
Holder stealing Tax Payer money again
This is criminal, as in jailable.
When Yeshua returns, will there be any law in the earth?
The Torah has been tossed, leading to cascading government, business and religious collapse.
The Democrats are full-time 24-7-365 corruption.
This is one of the many, many criminal acts they have done openly. It makes a person wonder what wickedness they do in secret.
They will keep pushing the limits until this whole thing blows up in their face.
The time will come when they will be held accountable.
The list, Ping
Let me know if you would like to be on or off the ping list
Over the top. La Raza is divisive and racist, and their goal is destructive. That's bad enough without equating them to ISIS. Wanting something doesn't make one a terrorist. How many heads have they cut off? How many suicide bombers?
Hell, there are plenty of people right here on Freerepublic who have spoken of secession. Are they terrorists too?
Slush Funds at the taxpayers expense. And it will never stop.
And to think that many here on FR rail about how crooked and broken Russia is.
Articles like this will draw as much interest on conservative sites as much as articles about making turnip soufflé.
Where are the rest of the billions going? (Holder till has 7B from JP Morgan and 15B from Bank of America to spend.)
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