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. It is believed that the administration’s 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 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 groups’ mission is supposed to be focused on finding:
“evidence of fraud, or misconduct by market participants such as loan originators, sponsors, underwriters, trustees, and others 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, however, don’t have to specify how the third-party groups must 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 April 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 an even bigger story. They received the biggest civil settlement ever in American history. Bank Of America received $16.65 billion dollars to “Resolve federal and state claims against Bank of America and its former and current subsidiaries.” According to the Dept. of Justice own records.
These banks were required to pay some $11 billion in consumer relief as part of a program that required banks to pay back funds to consumers who lost assets due to the types of mismanagement described above. But if you follow the money, the trail of consumer relief funds is anything but a relief to the consumer. Bank of America was able to reduce the penalty imposed by the government by simply “giving millions of dollars to liberal groups approved by the Obama administration,” according to the Washington Examiner. That’s not all; the Justice department created a provision where every dollar a bank gives to nonprofits, it may claim at least two dollars off its settlement. This was a win-win situation for the banks, and democrats who sought to use every means possible to achieve power.
An Example of how it worked:
If Bank of America was able to limit its exposure by donating to nonprofits they could take $194 million off the top by donating $84 million. Bank of America could take that off its $16.65 billion dollar settlement. The worst part of this scheme is 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 are giving Democrats an unfair advantage. Even worse is the fact that these are the organizations fighting the efforts of the Trump administration right now.
Without oversight, 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 but instead are going 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!