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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 ...
That’s a great point (no pun intended).
On a $15,000 loan that would only make a difference of $3.60 a month on the payment.
Yep, in the GM bailout Ally took over GMAC and taxpayer funds went to Ally. Looks like Holder and 0bama want some of that money back for their retirement and current vacations and travel.
Absolutely, there got to be such an entity. You don't just lose $100M somewhere under cushions. Monies that are not allocated by the Congress are very handy in a slush fund. You can run many almost lawful programs on that money.
But if you are asking if there is a publicly accountable entity that will tell all about that income to any US citizen... US Congressional committees were unable to get the truth out of this "most transparent" administration.
Banks are in the business of making profits. They do not give a damn if you are white, black, brown, yellow or covered in pink polka dots. The only thing they are concerned with is can you make the payment on the loan.
This is just a “shake down, by the “Department of Injustice.”
If I owned a bank and my employees denied a credit worthy loan on the basis of color, I would fire them immediately. I would fire them for two reasons. Firstly, that would be illegal. Secondly, if they denied a credit worthy individual a loan based on color they have just cost my bank profit on the credit worthy loan and a a result have lowered my bonus based on profits of the bank.
The only color that banks know is the color of green dollar bills. They do not care who brings it to them
Well said, and it’s definitely a shakedown.
Right now jesse jerkson is jumping up and down screaming that blankity blank stole my gig
Never a borrower nor a lender be...
Do not forget..
Stay out of debt.
Harold Hecuba
US ‘robs’ $13B from venerable bank / By Mark DeCambre, Oct 19, 2013
JPMorgan Chase has tentatively agreed to pay (Holder's) Dept of Justice a record $13 billion settlement to resolve several civil probes — a costly deal that still doesn’t protect the bank against additional criminal prosecutions.
“This is a basic and fundamental attack on capitalism,” declared Dick Bove, an influential bank analyst at Rafferty Capital. “It is possible that the government is taking away the property of the JPMorgan shareholders without the shareholders having committed any crime or having any say in the expropriation of these funds.” The deal also includes an undisclosed sum to settle a civil suit brought by NY state AG.
Under the settlement, JPMorgan must continue to cooperate with federal investigators probing the banking giant’s issuance of mortgage-backed securities from 2005 to 2007, according to sources.
Still to be ironed out are how to resolve that criminal investigation, along with the wording of any admissions of culpability the feds might require.
The general terms of the settlement deal were forged Friday in a phone conversation between Attorney General Eric Holder and JPMorgan CEO Jamie Dimon, The WSJ reported.
Analysts called the settlement a raw deal given that, by JPMorgan’s own estimate, some 80 percent of its mortgage-backed securities had been acquired at the request of the Obama-led government, when it bought Bear Stearns and Washington Mutual in 2008. “Ultimately, the earnings power of banks is being force-regulated out the (SEC), by the Department of Justice,” Kass added.
The settlement sum includes $4 billion that JPMorgan agreed this month to pay the Federal Housing Finance Agency to resolve allegations that the bank misled mortgage-finance companies Fannie Mae and Freddie Mac about the quality of loans it sold them prior to the 2008 financial crisis, the Journal reported.
SOURCE http://nypost.com/2013/10/19/jpmorgan-in-tentative-13b-deal-with-us-justice-dept/
More below.
Where are Dimon's lawyers? Why aren't they looking into mtges falsified from the getgo.
==============================================
OBO/HOLDER COVER-UP for massive mtge fraud perpetrated by the Congressional Hispanic Caucus (O's gotta show "he cares" ---b/c he's paranoid about getting latino votes) to stay in power.
SUB-PRIME MORTGAGE SCAMS--MASSIVE LATINO MORTGAGE FRAUD ON CAPITOL HILL:
The Congressional Hispanic Institute, Inc, is an entity organized by Cong Joe Baca (D-Cali) in his capacity as head of the Congressional Hispanic Caucus.
Cong Baca created "HOGAR" (Spanish for home) in 2003 to work with the mortgage industry, F/M, lenders, banks and latino community groups to increase mortgage lending to what savvy observers consider to be unqualified Latinos.
"HOGAR" colluded w/ Cong Baca in what was to become a massive bilking of taxpayers. Cong Baca calculatedly hyped the fact that the national Latino homeownership rate was 47%, compared with 68% for the overall population.
HOGAR was coached to call the figure "alarming," and to say "a concerted effort was required to ensure that by the end of the decade Latinos will share equally in the American Dream of home ownership."
HOGAR and Cong Baca conned the public, failing to note that most of the "dreamers" were illegals, citizens of Third World countries who had violated US borders.
Predictably, HOGAR colluded w/ co-conspirators which included:
(a) shaky mortgage companies that ran into big trouble;
(b) Fannie Mae and Freddie Mac, both now under federal control after billions in taxpayer bailouts;
(c) Countrywide Financial Corp., sold to Bank of America Corp;
(d) Washington Mutual Inc., taken over by the US government and sold to J.P. Morgan Chase & Co.; and,
(e) New Century Financial Corp. and Ameriquest Mortgage Corp, both now defunct, killed by defaulted subprime Latino mortgages.
HOGAR's ties to the subprime mortgage industry were substantial. Bribery and self-dealing were rampant:
<><> Companies that donated $150,000 to Cong Baca got the right to have their own research fellow who would conduct fraudulent studies, which were cunningly used by industry lobbyists to pump lending.
<><> Bribery and extortion in the form of $100,000 annual donations to Cong Baca, for which HOGAR provided phony news releases from Cong Baca's Hispanic Caucus promoting a lender's commercial products to the Latino market,
<><> The most shocking example of bribery well- substantitated by Hogar's literature..... HOGAR announced it worked with Freddie Mac on a self-serving two-year examination of Latino homeownership in 63 congressional districts.
The "study" found Hispanic ownership on the rise thanks to "new flexible mortgage loan products" that the industry was adopting at the urging of Cong Baca's collusive coterie.
<><> HOGAR conned lenders into even more lenient down-payment and underwriting standards.
<><> As the subprime debacle unfolded, HOGAR declined repeated requests for comment despite the economic havoc their activities precipitated.
The mortgage schemes demonstrated the criminal activities of border violators with multiple identities---perhaps violent, terrorist-connected foreigners---colluding and conspiring to defraud private companies and public entities. And mortgage racketeering enterprises which employed sub rosa finance and business practices to carry out deceptions and frauds.
The alleged ring of swindlers---a Congresman, individuals with multiple identities, banks, insurance companies, mortgage brokers--might be charged with cheating the US govt, taxpayers and bank share holders out of hundreds of millions of dollars via an elaborate web of mortgage and bank frauds.
The mortgage Dreamers used multiple phony identities, fraudulent Social Security numbers, purchased from identity forgers in order to obtain govt-subsidized benefits.
L/E will find that individuals with multiple identities obtained fraudulent mortgages then flipped the houses at ever-higher prices to family member who then absconded to foreign countries, sticking banks (and taxpayers) with hundreds of millions in fraudulent mortgages.
BACKGROUND A Wall Street Journal investigative report related that, according to the Federal Financial Institutions Examination Council examination of the borrowing spree, uncovered financial schemes by low-income housing groups, Hispanic lawmakers, a congressional Hispanic housing initiative, mortgage lenders and brokers, all colluding in fraduent schemes to increase homeownership among Latinos with forged documents which enabled massive fraud.
This was not simply the mortgage market at work. It was fueled by avarice, greed, and Congressional enabling fraudulent /practices. In 2005 alone, mortgages to Hispanics jumped by 29%; Latinos with multiple fraudulent identities in low-paying jobs obtained subprime mortgages for prime properties---soaring to 169%.
(Research provided by Wall Street Journal. Some material excerpted from the NY Times).
Comes a time when you simply realize no matter what, you will be branded a racist.
Then you stop playing.
No cooperation; no payments; all moneys hidden; big MIDDLE FINGER to Eric Holder. Might as well go out of business rather than lose money. Expat that cash and start the same biz in another country.
**** these racist bastards at the DOJ.
Yes, it is.
“The surcharge is so “statistically significant,” it contends, it can’t be a function of anything but racism.”......
More than likely it is just a matter of dead beats not paying up. IMO the is NOT racism.
Time for me to start a auto repo company.
At least until Obama allows car payments on EBT cards.
Definately Holder. Jackson usually goes away when he gets his pay. You can’t escape Holder’s racism or power. And Holder has well armed assasin SWAT teams to kill your dogs and throw you in jail.
DIDN’T EVEN LOOK AT THE CREDIT SCORES TO DETERMINE THERE WAS DISCRIMINATION.
Jackson doesn’t have the legal use of deadly force to back him up - Holder does.
Again with the comment and NO graphic!!
What’s going on?? I can ALWAYS count on you to engineer the BEST graphics, blinking eyes and all!!
Now...Get to Work...
I did a credit app on a black man this weekend seeking to buy a car.......................100k in immediate child support in arrears.....an open bankruptcy unresolved and he had not one penny for down payment
He took a punch at me when I told him no bank could finance him
and of course, he wanted a 48k SUV
Yep, the entitlement mindset and this administration supports them 100%.
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