The House Judiciary Committee is investigating claims that the Obama administration quietly gave billions of dollars to leftist organizations and politicians that promoted their liberal policies.
The goal was to win political elections at entry-level positions of government, as well as promote progressive ideology, according to a report in The Wall Street Journal.
The Washington Examiner provides this video report.
The RMBS connection
The plan involves Residential Mortgage-Backed Securities Working Group (RMBS). The group is a collaboration between the Securities and Exchange Commission, the Department of Justice, the New York State Attorney General’s Office, and many others. After the mortgage-backed securities scandal that led to the Great Recession of 2008, the government created a safety net called the RMBS in 2012.
The RMBS should focus on finding “evidence of fraud, or misconduct by market participants in the mortgage industry.” However, over the past four years, the RMBS, with the help of the Obama Department of Justice, reached
“multi-billion-dollar settlements with essentially every major bank in America,”
How did the Department Of Justice funneling mechanism work?
Banks charged with discrimination or mortgage abuse by the government can settle cases by donating to third-party non-victims, as Fox News reports. Settlements don’t have to specify how the third-party groups can use their money. This is a perfect way to move government funds to just about any person or group you want to benefit. So far investigators have found $3 billion dollars paid to “non-victim entities.”
Follow the Money
Goldman Sachs received from the dept of Justice a $5.06 billion settlement because of deceitful marketing, and sales of mortgage-backed securities. The settlement is for what the company did to consumers from 2005 to 2007.
The statement outlining Goldman Sachs responsibility to the “public” was made on Aprill 11,2016:
The resolution announced today requires Goldman to pay $2.385 billion in a civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and also requires the bank to provide $1.8 billion in other relief, including relief to underwater homeowners, distressed borrowers and affected communities, in the form of loan forgiveness and financing for affordable housing. Goldman will also pay $875 million to resolve claims by other federal entities and state claims. Investors, including federally-insured financial institutions, suffered billions of dollars in losses from investing in RMBS issued and underwritten by Goldman between 2005 and 2007
Bank of America is even a bigger story
Bank of America received a nearly $17 billion fine, the largest in American history, to “resolve federal and state claims against Bank of America.”
These banks were required to pay some $11 billion in consumer relief. This is a program that requires banks to pay back funds to consumers who lost assets due to mismanagement. But if you follow the money the trail of consumer relief funds is anything but relief to the consumer. Bank of America reduced the fine by giving millions to liberal groups approved by the Obama administration. The DOJ allowed a bank to knock $2 off of its fine for every $1 it gave to nonprofits. This was a win-win situation for banks, and for Democrats, who used the program to achieve power.
How it worked
Bank of America was able to limit the fine by donating to nonprofits. They could take $194 million off of a nearly $17 billion fine by donating $84 million. The groups receiving the funding were La Raza, The Hispanic civil rights council, the National Urban League, and the Neighborhood Assistance Corporation of America. This is not exactly what the law was designed to do. These are not victims. These are organizations who espouse Marxist progressive ideas. These organizations give Democrats an unfair advantage, because they are fighting Donald Trump right now.
This is a way for the Leftists in our government to funnel money intended for victims to liberal organizations. These consumer relief funds were intended to go directly to the victims of fraud or mismanagement. Instead, the funds went to the National Community Reinvestment Coalition, La Raza, and many others.
The obvious problem with this practice is that many of these groups are heavily involved in voter drives. All of these groups lobby on behalf of liberal policies at every level of government.
I don’t know about you but I have a problem with this.
What do you think about the fact that the DOJ gives billions to leftist groups? Let us know in the comments, and in addition, share this on social media!