The government has quite the tidy little deal going in terms of getting money out of large banking interests lately. The latest example was the $13B dollar “settlement” reached with JP Morgan, which certainly must have taught them a thing or two. But some observers have been digging into the details of the deal and finding that it might be even sweeter for certain progressive interest groups than anyone had previously imagined. Rather than simply settling for the smug satisfaction of seeing some Wall Street Fat Cats get taken down a peg or two, how about getting your hands on some of the cash yourself?
It seems Attorney General Eric Holder has created a multi-million dollar backdoor kickback for activist groups in the $13 billion JP Morgan Chase subprime loan deal recently settled, WND reports.
It appears the Obama administration has a strategy for reviving subprime mortgage lending by coercing banks to fund community organizing groups that may once more put low-income families into mortgages beyond their means.
But wait… you can’t just take the penalty money and hand it out to your friends, can you? According to the breakdown from Investors.com, apparently you can.
Just when we thought its post-crisis probe of banks couldn’t get more corrupt, the Obama administration has cut radical Democrat groups in on the record $13 billion JPMorgan Chase subprime loan deal.
On Page 5 of “Annex 2″ of the recently released consent order, you’ll find this little gem: The Justice Department mandates that JPMorgan fork over any unclaimed or unpaid consumer damages to a nonprofit group that finances Acorn clones and other shakedown groups.
They stand to reap millions. The “consumer relief” portion of the deal by itself totals $4 billion.
If the government “determines that a shortfall in that obligation remains as of Dec. 31, 2017,” the agreement states, “JPMorgan shall make a compensatory payment in cash in an amount equal to the shortfall to NeighborWorks America to provide housing counseling, neighborhood stabilization, foreclosure prevention or similar programs.”
Potentially billions could be distributed to Democrat activists through NeighborWorks, a government-funded “affordable housing” group that supports a national network of left-wing community organizers operating in the same vein as Acorn.
Is that even legal? I suppose somebody must have looked over the paperwork in advance and determined that it’s within the bounds of the law, but a lot of this is somewhat unexplored territory. If we’re accusing people at highly profitable institutions of wrongdoing, wouldn’t you think somebody would be going to prison? But, instead, we’re apparently just holding their feet to the fire until they whip out the checkbook and then distributing the money to people who support the administration’s agenda.