DOJ Begins Bank Witch Hunt

1 reply [Last post]
Joe Kawfi
Joe Kawfi's picture
Offline
Joined: 07/20/2009

DOJ Begins Bank Witch Hunt

For example, the government has ordered Midwest BankCentre to set aside almost $1 million in "special financing" for residents living in predominantly black areas of St. Louis. The program includes originating conventional home loans at fixed prime rates for African-American borrowers "who would ordinarily not qualify for such rates for reasons including the lack of required credit quality, income or down payment."

DOJ Demands 'Nondisclosure'

As part of settlement deals, prosecutors have required banks to sign "nondisclosure agreements" barring them from talking about the methods used to allege discrimination. Bank lawyers contend the prosecutors are trying to hide the shaky legal grounds on which the cases are built. "It's horrible what they're doing at the civil rights division," said Reginald Brown, a partner at Wilmer Hale in Washington, who has represented banks in connection to recent race-bias investigations. "They don't have any proof, just theories."

Under this broad theory, banks have been accused of racism simply for failing to open branches or aggressively market mortgages in black neighborhoods — regardless of the demand for, or viability of, such loans in those areas.

Following this theory, the government has ordered several banks to advertise in black media and open branches in black neighborhoods, despite the weak economy.

This isn't a leadership - This is socialist dictorship - courtesy of Barrack Hussein Obama and his minions.

More of the same nonsense from the completely inept Obama administrationrom and democrats that brought the first housing crisis.

grizz
grizz's picture
Offline
Joined: 01/02/2011
Outrageous

Private banks should just redline the applicants and let the Federal govt. sue them. It’s not the bankers being racist, it’s the borrowers being incompetent. Although it’s nowhere near amusing to hear the Barack’s cohorts like Perez, Reno, Holder already characterizing lenders as klansmen… but it is amusing that they’re doing it while foisting a RACIST lending standard upon them.

Recent Comments