Using phony statistics and with no evidence, Obama’s administration bullied a bank and others into paying reparations to minorities who had no complaints against them.
Obama’s Consumer Financial Protection Bureau has reached more than $220 million in settlements with several auto lenders since the agency launched its anti-discrimination crusade against the industry in 2013.
The settlements come with no evidence whatsoever except the corrupt disparate impact statistics. Disparate impact is a Marxist-like concept in which justice is meted out based on outcomes, nothing else.
Several banks are under investigation in addition to Ally Bank who have settled.
Judgments were awarded without any complaints of racial discrimination.
A confidential 23-page internal report detailing CFPB’s strategy for going after lenders shows why these companies are forking over millions of dollars in restitution and fines to the government despite denying any wrongdoing.
The administration muscled Ally Bank and others with threats and intimidation.
Ally and others were told to settle to avoid protracted litigation. The government has the taxpayer ATM and can drown businesses in legal costs.
Ally Bank was waiting for the Federal Reserve to give them permission to remain a financial holding company.
Protracted litigation” would present “a high hurdle” to Ally retaining such status, the CFPB lawyers conspired.
The administration would have lost in court but their threats worked.
The CRPB also used the Community Reinvestment Act as leverage. At the time, the FDIC was reviewing the bank’s compliance with the anti-redlining law.
The Federal Reserve and the FDIC conspired together and assured Ally they would be looked upon favorably if they agreed to a “prompt and robust” settlement.
The CRPB claimed their contrived statistics proved Ally was “marking up” loan prices for blacks and Hispanics vs. whites (by an average of $3 a month).
Non-discriminatory factors accounted for it but the CFPB refused to look at legitimate business aspects such as credit history, down payments, and so on.
Ally caved despite the lack of evidence or any reasonable case against them.
The government squeezed $98 million out of them.
With Ally’s holding-company status set to expire Dec. 24, 2013, it formally settled on Dec. 20, and was reapproved by the Fed on Dec. 23, 2013.
The federal government then went out and lied, claiming 235,000 minorities were harmed by ally even though they didn’t know the race of a single borrower.
The case was built on their faulty statistics and they didn’t have any actual victims.
The government then coaxed 235,000 borrowers into taking the settlement money.
The checks just started going out to the make-believe victims just in time for them to vote. The Democrats will win those votes as Ally is out $98 million via Obama’s extortion racket and the pretend victims get $520 apiece.