Explosive WSJ Report: Obama Transfers US Wealth from Banks to Progressives

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Barack Obama has funneled hundreds of millions perhaps billions of dollars to corporations and lobbyists to enrich its political allies, advance leftist pet projects, and protect its legacy under the guise of “Main Street Relief”, according to a Wall Street Journal report.

For the last several years, the Obama administration has warred against the banking industry using their exaggerated role in the economic crash as a front to extort money to those “organizations and politicians who are working to ensure liberal policy and political victories at every level of government.”

The conduit is the Residential Mortgage-Backed Securities Working Group, comprised of federal and state regulators and prosecutors created in 2012 who, along with the Department of Justice, force every major bank to reach multibillion-dollar settlements and turn that money over to their cronies.

The report states:

The most recent came in April when the Justice Department announced a $5.1 billion settlement with Goldman Sachs. In February Morgan Stanley agreed to a $3.2 billion settlement. Previous targets were Citigroup ($7 billion), J.P. Morgan Chase ($13 billion), and Bank of America, which in 2014 reached the largest civil settlement in American history at $16.65 billion. Smaller deals with other banks have also been announced.

The $11 billion that is diverted into “consumer relief” to benefit homeowners during the recession actually goes to private, nonprofit organizations drawn from a federally approved list. Some groups on the list—Catholic Charities, for instance—are relatively nonpolitical [though they are left-wing and further the cause of open borders]. Others—La Raza, the National Urban League, the National Community Reinvestment Coalition and more.”

They are not what they say they are and are assisting Obama with his open borders, unvetted refugees, voter registration, community organizing, lobbying and other liberal [leftist] policy priorities. They are paid well. They give out grants to other leftists who can’t get them directly from the government.

Banks who settle are financially compensated for every dollar they give in donations to these left-wing groups.

The report notes:

Bank of America’s donation list—the only bank to disclose exactly where it sends its money—shows how this benefits liberal groups. The bank has so far given at least $1.15 million to the National Urban League, which counts as if it were $2.6 million against the bank’s settlement. Similarly, $1.5 million to La Raza takes $3.5 million off the total amount of “consumer relief” owed by the bank. There are scores of other examples.

The author of the article, Andy Koenig, senior policy adviser at Freedom Partners Chamber of Commerce, said that so far more than 10% of this bank’s 2015 budget was given to 80 plus left-wing organizations.

Also to be noted:

As part of their “consumer relief” penalties, Bank of America and J.P. Morgan Chase must also pay a minimum $75 million to Community Development Financial Institutions—taxpayer-funded groups propped up by the Obama administration as an alternative to payday lenders. “Housing Counseling Agencies” also get at least $30 million. This essentially circumvents Congress’s recent decision to cut $43 million in federal funds routed to these groups through the Department of Housing and Urban Development.

Money has gone to individual states with Illinois’s Democratic attorney general Lisa Madigan securing $22.5 million from February’s Morgan Stanley and New York Attorney General Eric Schneiderman, also a Democrat and chairman of the RMBS Working Group, receiving over $400 million Morgan Stanley to New York [left-wing] nonprofits and $150 million to the state.

Eric Schneiderman
Eric Schneiderman

Schneiderman is of course the lead Attorney General in proposed RICO cases against anyone who denies global warming. He is of the belief that having dissenting opinions is the basis for a RICO case.

Congress has not amended the root cause — the Justice Deparment’s funding bill — to stop further handouts. They have an opportunity for fiscal year 2017

Rep. Bob Goodlatte (R., Va.) introduced a bill in April that would prevent government officials from enforcing settlements that funnel money to third parties, and it needs to gain wider traction with his colleagues, the report states.

All of this affects the taxpayer in either higher costs or, in the case of banks, paying from fiduciary liability insurance.

How corrupt will we allow our government to get? Who needs the Clinton Foundation to launder money when we have bills to do it directly through legalized extortion?

The government is run like the mob with Congress and banks complicit. This isn’t Capitalism, it’s a corrupt DC-Wall Street relationship fueled by leftists.

The New York Post on Thursday had an update and made the case that it is unconstitutional:

These donations are from money owed to the government, money the disposition of which is properly Congress’ responsibility.

So the donations are, in effect, appropriations of public money. The pesky Constitution, however, says: “No money shall be drawn from the Treasury, but in consequence of appropriations made by law.”

Progressives, who favor expansive notions of executive discretion, and hence the marginalization of Congress, regard the “donations” as just another anodyne manifestation of inherent presidential discretion in enforcing laws.

This is when it began:

This has been going on and we’ve been reporting on it.

Disgusting: More Unlawful Redistribution of Wealth by the DoJ to Left-Wing Political Groups

 

 

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