Consigliere Eric Holder cuts in Left-wing groups in $17 billion deal [Darleen Click]
Godfather Obama makes good on rewarding cronies.
Radical Democrat activist groups stand to collect millions from Attorney General Eric Holder’s record $17 billion deal to settle alleged mortgage abuse charges against Bank of America.
Buried in the fine print of the deal, which includes $7 billion in soft-dollar consumer relief, are a raft of political payoffs to Obama constituency groups. In effect, the government has ordered the nation’s largest bank to create a massive slush fund for Democrat special interests.
Besides requiring billions in debt forgiveness payments to delinquent borrowers in Cleveland, Atlanta, Philadelphia, Oakland, Detroit, Chicago and other Democrat strongholds — and up to $500 million to cover personal taxes owed on those checks — the deal requires BofA to make billions in new loans, while also building affordable low-income rental housing in those areas.
If there are leftover funds in four years, the settlement stipulates the money will go to Interest on Lawyers’ Trust Account (IOLTA) [...]
According to the list provided by Justice, those groups include come of the most radical bank shakedown organizations in the country, including:
• La Raza, which pressures banks to expand their credit box to qualify more low-income Latino immigrants for home loans;
• National Community Reinvestment Coalition, Washington’s most aggressive lobbyist for the disastrous Community Reinvestment Act;
• Neighborhood Assistance Corporation of America, whose director calls himself a “bank terrorist;”
• Operation Hope, a South Central Los Angeles group that’s pressuring banks to make “dignity mortgages” for deadbeats.
Worse, one group eligible for BofA slush funds is a spin-off of Acorn Housing’s branch in New York.
It’s now rebranded as Mutual Housing Association of New York, or MHANY. HUD lists MHANY’s contact as Ismene Speliotis, who previously served as New York director of Acorn Housing.
The recession has dried up funding for such groups. But Holder’s massive bank shakedown could rebuild their war chests in a hurry.
He’s written back-door funding for Democrat groups into other major bank deals he’s brokered, including the $13 billion JPMorgan Chase settlement and the $7 billion Citibank deal. They stand to reap millions more from those deals.
Tags: bank of america, corruption, holder, obama, slush funds