In August 2014, I posted an article about the Department of Justice (DOJ) under the Obama Administration distributing funds from fines imposed on banks to political leftist groups. The article explains that the Bank of America was forced to pay fines that Countrywide Mortgage and Merrill Lynch had incurred before they were owned by Bank of America.
The article explains what happened to these fines:
The groups benefitting from the lawsuit, according to Investor’s Business Daily, are the National Council of La Raza, Operation Hope, National Community Reinvestment Coalition, and Neighborhood Assistance Corporation of America. The money also went to “delinquent borrowers” in Chicago, Oakland, Detroit, Philadelphia and other major “Democrat strongholds.”
“This is a wealth redistribution scheme disguised as a lawsuit,” Tom Fitton, president of Judicial Watch, told The Daily Caller. “And who benefits from the distribution? Interest groups the administration relies on, outside interest groups, allies and politicians in communities trying to benefit as well.”
…La Raza, Operation Hope, National Community Reinvestment Coalition, and Neighborhood Assistance Corporation of America have all intimidated banks to give loans to minorities, even if they can’t afford to pay them back.
This was the government equivalent of a mob shakedown.
Yesterday The Daily Caller posted an article about this practice.
The article reports:
Emails written by Obama administration Department of Justice officials confirm reports the agency engaged in a systemic effort to funnel money to liberal advocacy organizations from settlements reached with big banks.
The documents, obtained by the House Judiciary Committee as part of an ongoing investigation, reveal the Obama Justice Department effectively skirted Congress’s budgetary authority by requiring that major financial institutions donate to a group of affordable housing nonprofits and legal advocacy organizations as part of settlement agreements resulting from predatory mortgage lending practices.
The internal DOJ documents represent the latest revelation in a two-year investigation spearheaded by House Judiciary Committee Chairman Bob Goodlatte.
The article at The Daily Caller reports that this practice has been stopped:
Attorney General Jeff Sessions issued a memo banning the DOJ from entering into third party settlement agreements after substantial evidence emerged implicating the Obama DOJ in such practices.
“When the federal government settles a case against a corporate wrongdoer, any settlement funds should go first to the victims and then to the American people — not to bankroll third-party special interest groups or the political friends of whoever is in power,” Sessions said.
The more I learn about some of the actions of the Obama Administration, the more I wonder why Congress did not address some of the wrongdoings as they were going on.