Under Obama, the Jackson/Sharpton racial shakedown industry has gone bigtime:
Newly uncovered internal memos reveal the Obama administration knowingly exaggerated charges of racial discrimination in probes of Ally Bank and other defendants in the $900 billion car-lending business as part of a “racial justice” campaign that’s looking more like a massive government extortion and shakedown operation.
So far, Obama’s Consumer Financial Protection Bureau has reached more than $220 million in settlements with several auto lenders since the agency launched its anti-discrimination crusade against the industry in 2013. Several other banks are under active investigation.
It would be easier to find a winged leprechaun than a financial institution in 2016 that discriminates against blacks out of racial animus, so it should be unsurprising that the CFPB had no actual complaints of racial discrimination. Under Obama, discrimination not only doesn’t have to be proven; it doesn’t even have to be alleged. Everyone is guilty, because racism is everywhere. So turn over your money.
Since the P.C. ideology that serves as a pretext for the looting is a joke, standard Big Government extortion tactics need to be applied.
A confidential 23-page internal report detailing CFPB’s strategy for going after lenders shows why these companies are forking over millions of dollars in restitution and fines to the government despite denying any wrongdoing.
The high-level memo, sent by top CFPB civil-rights prosecutors to the bureau’s director and revealed by a House committee, admits their methods for proving discrimination were seriously flawed from the start and had little chance of holding up in court. Yet they figured they could muscle Ally, as well as future defendants, with threats and intimidation.
Here’s how Ally’s arm was twisted:
At the time, the Detroit-based bank was seeking permission from the Federal Reserve to remain a financial holding company. Without regulatory approval, Ally risked losing key business lines, primarily its insurance subsidiaries.
“Protracted litigation” would present “a high hurdle” to Ally retaining such status, the CFPB lawyers conspired.
Prosecutors also sought to use the Community Reinvestment Act as leverage against Ally. At the time, the FDIC was reviewing the bank’s compliance with the anti-redlining law.
The CRA is best known as one of the primary causes of the 2008 housing meltdown. According to liberal ideology, if blacks and whites are not given loans in exact proportion to their relative percentage of the population, there is racism. Since whites are more likely to qualify for loans for a variety of reasons, this provides a never-ending supply of racists to loot. In a desperate effort to avoid the thuggery, banks have been reduced to giving out loans to blacks simply based on skin color, knowing the loans will likely not be paid back. This helped cause the housing bubble.
In the case of auto loans like the Ally case,
The auto industry does not report borrower race, so CFPB tried to ID race by last name and ZIP code, a so-called “proxy” method that is wildly inaccurate.
This idiocy would be laughed out of even a liberal court. No matter; federal regulation has reached the point where no one can do business without the goodwill of useless, parasitical bureaucrats. Knowing that goodwill doesn’t always come cheap, banks meekly turn over the money without going to court.
On tips from Torcer and Jester.