Eric Holder’s idea of implementing justice is to shake down banks on trumped up charges based on vague statistics and leftist theories. Holder’s Department of Justice recently leveled a $100 million fine against Ally Bank for “racist” lending practices without a shred of evidence. And Ally’s not the only victim of Obama/Holder Inc.’s protection racket. Apparently, the post-racial presidency of Barack Obama has decided to extort almost a billion dollars from capitalist institutions under the unjustified pretense of ‘race-based’ predatory lending.
The recent settlement made between Ally Bank and the DOJ’s Orwellian named Consumer Financial Protection Bureau is one of many that has led to over $810 million in fines and penalties. In almost all 30 cases, the Feds ran a protection scheme against companies by accusing them of race-based lending practices. Why exactly would the banks pay the fines when the Feds are unable to provide evidence backing their allegations? Well… After paying a fine, everything goes away before charges of racism are leveled in a very public three-ring-circus of a trial. If it sounds an awful lot like a protection racket… That’s because it kinda is…
The charges facing Ally Bank? According to the Justice Department, and the CFPB, Ally 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.”
But the allegations were somewhat dubious, given the fact that neither the DOJ, nor the CFPB, actually had access to the race, credit worthiness, or risk assessments of any of the bank’s customers. Apparently the government used “statistical analysis” based on geography and census data to determine that “racist” lending practices had occurred.
Not a single credit score was reviewed by the DOJ. Not a single borrower’s debt to income ratio was investigated. Not a single ethnicity was verified by the Feds. The $100 million fine was, instead, based off of a rather racist assumption that the borrowers in certain geographical locations were receiving higher interest loans because of their (assumed) skin color.
Welcome to Barack Obama’s “post-racial” America.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 29th, 2014 | John Ransom
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 28th, 2014 | John Ransom