Bank of America has been able to reduce a multi-billion dollar mortgage fraud penalty imposed by the Justice Department by giving millions of dollars to liberal groups approved by the Obama administration.
The bank has wiped about $194 million off its record $16.6 billion 2014 mortgage settlement by donating to nonprofits and legal groups. Thanks to little-known provisions in the settlement, the bank only had to make $84 million in donations to do that.
The bank wasn’t exploiting any loophole. It’s a key part of the deal the Justice Department offered to get it to settle in the first place. For every dollar the bank has given the nonprofits — none of which were victims of fraud themselves — it has claimed at least two dollars off the settlement. The deal ensured the Obama administration that a certain part of the settlement funds would go to friendly liberal groups, bypassing the normal congressional appropriations.
Among the groups receiving the money were Hispanic civil rights group the National Council of La Raza ($1.5 million), the National Urban League ($1.1 million) and the Neighborhood Assistance Corporation of America ($750,000).
This deal is one of many, part of a larger corrupt trend:
Republicans have sharply criticized that part of the settlement as well as near-identical language in multi-billion settlements with Citigroup, Morgan Stanley and Goldman Sachs, arguing that the administration has created a “slush fund” for liberal groups. …
“This is nothing short of a shakedown and another example of how the Obama administration is rigging the system to benefit their political allies. Instead of directing settlements directly to victims or returning the money to the U.S. Treasury, President Obama set up a slush fund for community organizers and other liberal activists. This is outrageous,” said Rep. Sean Duffy, R-Wis., chairman of the Financial Services Committee’s Oversight and Investigations Subcommittee.
Rule of law is disappearing in a gathering maelstrom of corruption in the US. The media and bureaucracy are openly pro-big-government and politically correct, and the banking system is creating a much more unequal society with a class of rich parasites at the top.
The world is fundamentally changing in several ways, apparently all inimical to the western middle class.
Throughout ten Democratic Party debates, Establishment Media have not asked Hillary Clinton a single question about she and her husband’s for-profit education scam.