$1B coerced from “racist” lenders ….. and we’ve “Only Just Begun” …..
From Investor’s Business Daily:
“…..So “victims” were never actually identified. That’s why the complaint has to estimate that Ally discriminated against “approximately” 100,000 African-American borrowers.
More shocking, civil-rights prosecutors never actually checked the creditworthiness of those borrowers. That’s right, they never looked at credit scores, down payments, debt or other key risk-related factors banks consider to set interest rates. Not for blacks, or for supposedly “similarly situated” whites.
So how in the world can Justice claim “Ally’s specific policy and practice are not justified by a legitimate business need?”
It really can’t. That’s why it relies on statistics to “prove” such policies had a “disparate impact” on minorities, while arbitrarily finding those disparities so “significant” they can’t be explained by chance.
Arbitrary, because neither Justice nor CFPB will reveal its threshold for “significant,” despite repeated bipartisan requests from Congress.
What a clever fraud by your own government.”
The Credit Rating service Fitch notes that it may be more than just a desire to extort from the banks which lend in the auto market:
Fitch also notes that CFPB does not have jurisdiction over auto dealers and their practices. Actions taken against lenders could be an indirect way to regulate dealers.
A look through the CFPB “Advisory Groups” listings will show a “who’s-who” of Progressives with tentacles to well known fraud front groups, such as ACORN.
The official news release for the latest shakedown , er, “settlement” states it will consist of several parts:
(a) $80 Million into a “settlement fund” for distribution to “victims”.
(b) Hiring of a settlement Administrator (will this be a flat fee, or a percentage of the graft like the Pigford “settlement” ?)
(c) “Monitor” dealer mark-ups: ie: a new expansion of government oversight that will never go away, and will increase it’s scope in order to justify it’s existence.
(d) Payment of an $18 Million “Penalty” to fund further investigations in potential future sweet shakedowns, er, “settlements”.
Note that the Administrator actually has to “find” “Victims” to distribute the monies to.
I’m sure it will all turn out well.
