Holder's Bank Shakedown

February 10, 2015

Congress Finally To Investigate Holder's Bank Shakedown Settlements

INVESTOR'S BUSINESS DAILY

Attorney General Eric Holder, joined by Associate Attorney General Tony West, right, U.S. Attorney for the District of New Jersey Paul Fishman, left,... View Enlarged Image

Extortion: A House committee is looking into why Attorney Gen. Eric Holder cut Democratic activist groups in on billion-dollar settlements with big banks. Better late than never — we wondered the same thing six months ago.
They say that the wheels of justice grind slowly. But considering the size of this Obama administration power abuse, the probe's delay is disappointing.
In an Aug. 27 editorial, "Holder Cut Left-Wing Groups In On $17 Bil BofA Deal," we revealed that Holder's record $17 billion deal to settle alleged mortgage abuse charges against Bank of America included potentially hundreds of millions of dollars in set-asides for "a national network of left-wing community organizers."
Instead of going to so-called victims of the so-called fraud, Holder steered huge sums to affordable-housing activist groups approved by HUD, which is mired in a separate lobbying corruption scandal, including:
• La Raza, which pressures banks to qualify more low-income Latino immigrants for home loans.
• National Community Reinvestment Coalition, Washington's most aggressive lobbyist for the disastrous Community Reinvestment Act (CRA).
• Neighborhood Assistance Corp. of America, whose director calls himself a "bank terrorist."
• Operation Hope, a South Central Los Angeles group pressuring banks to make "dignity mortgages" for deadbeats.
• Mutual Housing Association of New York, or MHANY, a spinoff of an Acorn housing unit.
In effect, the government is forcing banks to fork over payola to radical nonprofit groups that exist to shake down banks for high-risk urban home loans, the very type of mortgages that defaulted in droves during the housing crisis. The money also restocks their war chest to lobby Congress for expansion of the CRA.
Though our editorial made national headlines, House Republicans did not demand answers from Holder for another three months. Stonewalled, they're only now holding a public hearing on the scandal.
On Thursday, we're told, House Judiciary chair Bob Goodlatte will charge that Holder "shortchanged" alleged victims of BofA and Citibank by diverting at least $150 million into a slush fund for Democratic interests in an unconstitutional end-run around Congress.
Holding the outgoing Holder accountable won't be easy. But we need at least an accounting of the funds.