Judicial Watch • DOJ to Give Leftist Groups Cut of B of A Settlement

DOJ to Give Leftist Groups Cut of B of A Settlement

DOJ to Give Leftist Groups Cut of B of A Settlement

AUGUST 28, 2014

The Department of Justice (DOJ) keeps giving radical leftist groups that support President Obama huge amounts of cash collected from big banks to settle discrimination and mortgage abuse lawsuits filed by the government.

Judicial Watch first reported the scheme two years ago when Countrywide Financial Corporation doled out $335 million to settle its discrimination lawsuit with the feds. The money was supposed to be distributed to more than 200,000 minority victims who supposedly were charged higher interest rates and fees than white borrowers based on their race not their credit. Instead, a chunk of the money went to Democrat-tied groups not connected to the lawsuit, including the scandal-plagued Association of Community Organizations for Reform Now (ACORN) and the open-borders National Council of La Raza (NCLR).

Now many of the same groups will get more money from a record $16.65 billion settlement with Bank of America. It’s a “historic resolution,” according to Attorney General Eric Holder, and the money will help make amends to borrowers and communities that were negatively affected by the bank’s conduct. Besides settling civil penalties at the state and federal level, the billions will bring relief to struggling homeowners and communities by, among other things, offering new loans and providing financing for affordable rental housing. Delinquent borrowers in Democrat strongholds like Chicago, Oakland and Detroit will also benefit from debt forgiveness.

Leftover funds will go to politically-connected community groups—like the NCLR, Operation Hope and National Community Reinvestment Coalition—that intimidate banks into qualifying more minorities for home loans, even if they really can’t afford it. This part of the deal is conveniently buried in an annex to the 37-page DOJ agreement, but a publication dedicated to covering business, finance and economics draws attention to it in a scathing editorial that refers to the arrangement as extortion.

“In effect, the government has ordered the nation’s largest bank to create a massive slush fund for Democrat special interests,” states the editorial which reveals that radical Democrat activist groups stand to collect millions from Holder’s record deal with Bank of America. “The recession has dried up funding for such groups. But Holder’s massive bank shakedown could rebuild their war chests in a hurry.” The piece also points out that Holder has brokered other similar deals that will provide more back-door funding for the Democrat groups. They include a $13 billion agreement with JPMorgan Chase and a $7 billion deal with Citibank.

Judicial Watch has investigated these controversial arrangements of funneling big portions of cash settlements from civil rights lawsuits to organizations not officially connected to the cases. In fact, back in 2010 JW sued the DOJ to obtain information about the outrageous policy. In response to our lawsuit the DOJ was forced to acknowledge that it has no official guidelines regarding “qualified organizations” that get leftover settlement funds and that it doesn’t monitor how the money is used.

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  • 1984U

    Please don’t feed the dog-trolls.

  • retired_sandman

    more and more colliegurls are sniffing glue!!

  • colliegurl

    The 37 page link is the settlement. The other links “the scathing editorial” are JW. There is no evidence that the settlement is going to the “radical left.”

  • DanBoots

    a link to the 37 page document is a lie?

  • FrancisClifford

    and it’s fake because……?

  • M_Baker

    If you go back and reread my updated comment you will see I made the Wells Fargo change even before reading your trivial response. Oh, and big deal I didn’t get the name completely correct, but far more importantly where is the additional evidence you claimed to know about this settlement? If you can’t provide what you claim to know then this is just another of your substance free comment.

    You have also demonstrated you can’t provide an intelligent response back, but instead you have to resort to childish and immature name calling. This article also has nothing to do with political ideology so by you calling me a liberal troll only further demonstrates you ignorance about this.

    Next time try including some valid facts about this that you can back up, and stop parroting what you’ve read or heard from bias “news” sources or pundits who do your thinking for you.

  • Mike Heuer

    “West Fargo.” Really? You sure about that? There is no “West Fargo.” Also, there is no “Countrywide Mortgage.” The company to whom you improperly refer is “Countyrywide Home Loans.” The only one “spewing misinformation” is you, liberal troll. I seriously doubt you read any agreement of any sort, and you clearly have zero credibility.

  • M_Baker

    What more evidence do you have or think you know of beyond what’s in the settlement agreement? My guess is you don’t know of any and probably haven’t even read the agreement itself. In essence, Bank of America is pleading guilty and willing to pay these huge settlement penalties because they were fully aware of the situation and didn’t want to take it to court. Do you really believe they would be willing to pay these huge settlements if they felt they were innocent? Their subsidiary Country Wide Mortgage, and Bank of America which took Country Wide Mortgage after the collapse knew they had illegally passed bad paper and knew if they did go to court things could be much more severe for them. Also, I’m very familiar with this case and more than likely more informed than you are because I have been following not just what Bank of America was doing, but also what Wells Fargo was doing since they were both were passing bad mortgagees off to other unsuspecting banks and to others. The person who really made out in all of this was the CEO and founder of Countrywide Mortgage, who Bank of America financed from the beginning to help get it started, and they obviously knew about the bad mortgages through their audits, but also from their financial documents as well. Bank of America had a huge amount of money invested in Country Wide Mortgage and are willing to do what ever it is to protect their investment into country Wide Mortgage and to recoup as much as they can from their investment.

    If you want to take about things in more detail, I’ll be glad to discuss it with you, but first make sure you know the facts before you start spewing misinformation out you may have heard from a second or third party. I also notice you didn’t make any reference to any additional information or evidence that may have had an affect on the agreement or how Bank of America would be innocent in all of this. That alone tells me you actually don’t know of any additional evidence and I highly doubt you even read the agreement in full. Your comment is as far as I’m concerned is nothing more than a substance free comment.

  • colliegurl

    You certainly are a deep drinker of Koolaide/Fox “news”. That station has done great harm to this nation.

  • Snellville bob

    Wow, a really deep drinker of the coolaid.

  • colliegurl

    Really? Collies are one of the top most intelligent dogs, and my collies are the most intelligent dogs.

  • colliegurl

    “The House Intelligence Committee report joins previous Benghazi investigations by the State Department’s independent Accountability Review Board (ARB), the Senate Select Committee on Intelligence, and the House Armed Services Committee which have repeatedly debunked right-wing Benghazi myths that have persisted since the attacks, including the falsehood that a “stand down” order was given to troops stationed in Tripoli and the myth that the administration lied about the attacks having been caused by an anti-Islam YouTube video….

    Fox News, which relentlessly campaigned for a select committee, has dutifully continued to promote it, regardless of the investigation’s $3.3 million price tag.” Media Matters

  • colliegurl

    Wishful thinking? It’s over. Done. Issa has been humiliated.

  • Snellville bob

    Collies really are not one of the more intelligent dogs.

  • Snellville bob

    Not yet completed are
    Trey Gowdy’s select committee.
    House Committee on Armed Services
    House Committee on Foreign Affairs
    House Committee on Oversight and Government Reform
    Senate Select Committee on Intelligence Benghazi Report

  • colliegurl

    They lead you to more lying wing websites.

  • colliegurl

    More and more states are implementing Obamacare!

  • colliegurl

    There is no Obamacare. The health insurance exchanges sell private insurance. The only people who can buy insurance on the exchanges are people who don’t have coverage through an employer!!! The law states that everyone has to have health care coverage. That’s it !!! I don’t have a health care plan through the exchange because I have coverage through my employer. Government employees and union members have coverage through their employers. Large employers got an extension on the employer mandate. They were not prepared to expand coverage. The government was not ready to regulate large employers. Small employers were never required to provide coverage! Your last sentence doesn’t make any sense. Insurance companies had caps on benefits before Obamacare so they kicked you off if they reached the cap. If you got sick, they could and did spike your rate. People on the individual market did not have the same protections as people in employer plans.

  • colliegurl

    (08-01) 11:42 PDT WASHINGTON — TheHouse Intelligence Committee, led by Republicans, has concluded that there was no deliberate wrongdoing by the Obama administration in the 2012 attack on the U.S. Consulate in Benghazi, Libya, that killed Ambassador Chris Stevens and three other Americans, said Rep. Mike Thompson of St. Helena, the second-ranking Democrat on the committee.

    The panel voted Thursday to declassify the report, the result of two years of investigation by the committee. U.S. intelligence agencies will have to approve making the report public. – SFGate

  • Snellville bob

    Governments and unions do not have ObamaCare. they are exempt. The government has their own which WE pay for so it don’t matter what it costs and the Unions are exempt so far since their employers will get rid of them if they have to pay for Obamacare. Companies are still exempt and will be until after the November elections. This is not random chance. Stop reading huffpo. In Georgia before ObamaCare insurance companies could not kick you for being sick and if you wanted insurance the state would assign one to you are prevailing rates for health people. ObamaCare erased that law.

  • Snellville bob

    Wrong. They have not has a single hearing yet. That is supposed to happen this or next week.

  • colliegurl

    I am here because I was reading Yahoo.

  • colliegurl

    95% of the American public does not qualify for the ACA exchanges. Politicians and unions are not exempt. Everyone must have health insurance. Unions and government employees have insurance. The meet the requirements of the health care law. Prior to the health care law, the insurance companies were the death panels. Insurance companies can no longer deny or drop coverage when someone gets sick. You’re lucky that Obamacare insures that you can get health care with a health condition. Health care costs are rising at an historically low rate. Medicare is stronger.

  • colliegurl

    LOL Trey Gowdy’s committee already said they could find no wrong doing.

  • Snellville bob

    The Racist Contemptable Eric “Shakedown” Holder.

  • Snellville bob

    There were 6 or 7 subcommittes investigating the Benghazi issues that affected their committee. One such committee has reported that with the little information provided by the Obama Administration they could not find any wrongdoing for there area of investigation. ONE, not all and Trey Gowdy does not have to ask Obama for permission to access information. Obama is going down in flames when this is over.

  • Snellville bob

    95% of the people now on ObamaCare were canceled from the insurance they had before. Medicare has bloomed in numbers for the ones who want free stuff. 95% of the US population is still exempt from ObamaCare until after the next election in November. Permanently exempted are governments and unions as they would tolerate that crap healthcare. When ObamaCare was first passed all doctors offices and Hospitals were forced to go electronic so they all run around with tablets faithfully filling out computer forms to be filed in Utah. My Cardiologists office spent $1.5 million for theirs. This has now been paid for so costs can now stop raising at as rapid of a rate. There are death panels but the call them something else like “Review boards”. The real ObamaCare has not kicked in yet and after the election they plan to blame ObamaCare on the Republicans.

  • Snellville bob

    So do I read this right? B of A rips off a million homeowners, the DOJ wins a lawsuit and the Contemptible Eric Holder awards the money to his buddies and not the offended homeowners? Is this not a criminal act?

  • http://192.168.0.1/ Kyle Stephens

    ……ahem, not legal. accepted/not-prosecuted and legal are 2 very distinctively separate things.

  • http://192.168.0.1/ Kyle Stephens

    only silver can stop the lycanthrope incumbent.

  • http://192.168.0.1/ Kyle Stephens

    obama gives diddly squat about veterans. They fought for our country, and he’d rather make nice play time with our enemies, some illegal immigrant who doesn’t pay taxes or worked a day in their life, and his leftist buddies who, by the way, are 2 tequilla shots away from opening an arby’s.

  • http://192.168.0.1/ Kyle Stephens

    and so the liberal war machine keeps rumbling, so as long as americans do nothing to curb it. A saying, “liberals are so open-minded, they’ve let their brains fall out”

  • SemperCogitens

    “How can this be legal ?”

    The only ones with the authority to prosecute are the DoJ. Convenient, yes? And we can’t go to the White House to have them make the DoJ prosecute because they’re complicit in the scheme. Can’t go to Congress because the Senate will stonewall any action. (<3 ya, Harry) And private citizens can't bring suit directly because they have no legal standing in the case upon which to file.

    Combine that with the convenience of the funds being a "settlement" so they're under no court order to be distributed in any particular way (ie, to those actually harmed) and *poof* instant slush fund!

  • SemperCogitens

    It’s redistribution of wealth from the “wealthy” banks to the “poor” minority advocacy groups. I do enjoy the irony of it not actually going to the poor themselves, but to well-connected, well-off people who run these groups.

    I did find it odd that so much hot air has been dedicating to hating on banks as the cause of the 2008 bubble, and yet, seemingly nothing was being done. Nothing was making the headlines. Now I know why. Eric Holder has been using the authority of the DoJ to extort billions in settlements in exchange for avoiding prosecution for alleged wrongdoing in the run-up to the recession.

    I always wondered who gets the money? The people harmed by the actions were other financial institutions who were sold bad derivatives, their investors, and anyone with real estate equity at the time of the crash. Yet, none of these people seem to be on the list of people getting money back from these settlements.

    I used to read about this type of corruption in third world countries. Now, I read about my own government doing it…

  • jillocity

    trolls will be too lazy to do so, but going to the links in this article will lead you to the truth

  • jillocity

    not all of us are asleep, we here are the informed…

  • Doug

    Charging corporations only began in 1999. It seems the idea is to only charge corporations that are majority owned by the big mutual fund companies (i.e. middle class Americans on 401K’s). Not a single privately held corporation has ever been charged with a crime. The problem is that Federal Bribery statutes make it a crime for money to be used to halt prosecutions where fraud is otherwise involved. Think about it, people were defrauded and the government takes money from unsuspecting and powerless others to settle the matter. A lawyer could get really rich under Federal Whistleblower procedure if he or she filed charges of bribery against the individuals who made this happen – both justice department officials and Bank CEO’s. They both have plenty of our dough to make it worth while.

  • zzpat

    Did you read their PDF file. It says Kentucky is getting money. Is Kentucky an Obama or Democrat state? No…the states that are getting money are states that were wronged. There’s NOTHING in the PDF file about liberal groups getting anything.

  • Leo

    The Obama and Holder team of Terrorist needs to be stopped now. Before anymore damage to America.

  • Blanche

    I read the annex. Also went to page 37 of the DOJ agreement. I found in the annex that states made a bundle which can be interpreted as being a huge piggy bank to be raided at will. The link to document is accurate. I did not find any reference to any organization name other than B of A,, other banks, states AG’s and redacted complainants names. If you have exact page please post.

    The wording of the annex can lead to different interpretations. The “slush fund” becomes the property of the state who then can distribute to those organizations that are 5013C etc, another words the democrat pets based on previous actions..

  • M_Baker

    Sorry, but it’s an original comment of mine which is probably something you could never do. I stand completely behind my statement and if you care to do your own research, instead of relying on what someone else tells you, you will find out which one of us is correct.

  • colliegurl

    Again, you have nothing to say. Republicans and republican policies are more unpopular than ever, and you think the world agrees with you? You’re delusional.

  • cathnealon

    If it’s bs why are you here? And the ‘their’ ‘there’ mistake says it all. (And the fact that you repeated it 3 times to make your point–touchy aren’t we?). Oh, and 99% of the world agrees with me.

  • Anthony

    Oh good so I am not the only person walking around without blinders on. Everytime I see a news report about the market climbing, or Obama saying the economy is recovering at a record pace. I just give out a little chuckle, it reminds me of that saying do not believe your lying eyes, which seems as if it should be the Democrat motto. Yet again people have seen their home price slightly rise, and yet again droves are taking out equity loans on their homes. They always think the party will never stop, but all the warning signs are there and they still are not listening again. How long ago was 2008 are people memories really that short, one has to wonder with this regime and current media outlets.

  • Nerve Man

    You have been copying and pasting this post like a troll all over other sites.
    Do you get paid by the post?
    Why is your Discuss profile private?

  • colliegurl

    The fake scandals are over and Issa’s monkey court has lost all credibility. Stop watching fake news and believing the bs you read here. There, there, there….. You clearly have nothing when you start criticizing the word their.

  • cathnealon

    Stop–just stop–it’s too much–when I got to “The Benghazi committee determined that their was no scandal” that was it for me–‘their’ should be ‘there’–lost all credibility with that little error.

  • Scott Gee

    You’re right… why have Judicial Watch when ABC, CBS, NBC, NYTimes, TIME magazine all are trustworthy media sources who report it when the Obama Admin steps outside the law.. (Sarcastic face)

  • hmmathis

    The worst Dem lie was the one certified by Pelosi, Reid and Biden in 2008, namely that Obama was eligible to be President of the United States of America.

  • Anonymous 0407

    LULZ you’re busted!

  • Anonymous 0407

    even when they source their stories with PDFs straight from the fucking DOJ you still post that BS?
    REALLY?
    Wow your bosses need to cut your trolling pay.

  • hal

    How can this be legal ? Obama is the leader of the largest criminal conspiracy in the history of the world. And the Congress is his lapdog. This as the American people remain asleep.

  • colliegurl

    99% of Americans kept their health care. More Americans have health care coverage now than in 2008. Those who lost their health care were allowed to keep it, sign up for better plans, most qualified for subsidies. Health care reform is bringing down the deficit. Health care inflation has slowed. It has extended the life of Medicare while increasing benefits. There are no death panel, no government takeover, no long lines, no rationing, no micro chips, no socialized medicine. The Benghazi committee determined that there was no scandal. The fake IRS scandal is over. President Obama doesn’t run the IRS. And whatever you are talking about has nothing to do with health reform.

  • Mike Heuer

    Pretty much, these idiots are pushing for another housing bubble.

  • Mike Heuer

    Interesting to note you only claim to have read the settlement. Without any corroborating evidence, you have no more credibility than a cockroach.

  • Mike Heuer

    Funny, but I was just thinking your comment is nothing more than left-wing extremist disbelief. Dem lies are unraveling faster than they can create new ones, after all. I’ll give you a perfect example of a liberal lie: If you like your health insurance, you can keep it! Yeah, that one just bit me and many of my co-workers right in the butt after learning this week Obama’s IRS will fine our employer $100 per day if it continues to give us a $150 per month in health insurance reimbursements. Idiots like you made that possible.

  • Mike Heuer

    And, when these liberal activist groups receive their money from the settlements, will be just as willing to admit you completely fabricated your post? Yeah, we all should trust some anonymous Internet poster over an established anti-corruption organization. I’d not be surprised one bit if you are a member of one of those same organizations and are just doing your normal lying BS.

  • M_Baker

    Before you make such an ill informed comment, you should first do your own research on this article as I did. You’ll find what I found by reading the settlement agreement with Bank of America vs. what was written in this article below.

  • M_Baker

    I have little doubt that Judicial Watch will allow criticism of their this article and they’ll allow my comment to stay posted, but I’m going to post it any ways and will see how strongly they will stand behind their article. I’ve read all of the settle agreement that they have linked to in their article and have read it very carefully from the beginning to the end. I’m used to reading legal document and federal and state regulation, which was a very vital part in my career.

    Basically what I found in the settlement agreement and what was written in the article was very different. I found that the settlement agreement was very thorough in describing where every cent of the agreed would go, which was to settle legal claims from the states and federal government against Bank of America and from their former subsidiary Country Wide Mortgage. While a small portion from the settlement went to the general fund, most of it went to the victims of the mortgage writing schemes by County Wide Mortgage.

    No where in the agreement was there any left over money, or any direction to where that so called money was to go. In other words, Acorn or to the Community Organization for Reform Now, In addition, there was also no mention of any of the money being allocated to any group at all, only to the States and the Federal government who had sued Bank of America on behalf of the victims.

    In short, this article is a complete fabrication of the truth an what is written in the settlement agreement. I would encourage others to read the document ti see where the money has been allocated to. In addition, I found what was written in an article by Investors,com to be equally as false as this article.

    If the author cares to debate me in what I wrote, I’ll be glad to respond to any disagreement he has with my comment and would expect him to point out the specific points in my comment he disagrees with along with any countering evidence he may have.

    Well you’ve read what I discovered written in the settlement agreements, lets just see if they allow my comment to stay or if they have the courage to comment back with what they don’t agree with and why.

  • colliegurl

    This is nothing more than right wing bs. Republican lies are unraveling faster that they can create new ones.

  • Anthony

    So the entire basis for the legal challenge by these minority groups with delinquent mortgages, is that their bad credit made the bank act racist in its lending. On what planet and with what liberal loon judge was this case decided, because it reeks to high heaven of corruption, and reverse racism by the DOJ itself.

  • http://wolfmoon1776.wordpress.com/ Wolf Moon

    Eric “Shakedown” Holder, doing his thing.

  • Amos2

    Obama and his Democrat Party continue to commit these financial atrocities against the American Middle Class, and all we do is moan about it. Where is there justice through legal process? It seems like we are all just helpless sheeple in the face of an unstoppable gigantic Obama-Democrat machine.

  • melanie faulkner

    This country is 17 trillions dollars in debt!! Want to turn our economy around, raise the buying purchase of the dollar, then pay off the debt you stupid morons we call government! Jesus Christ I can barely contain my disappointment and anger at the democrats these days! We owe people money and we need to pay it all back and free our country from debt!!

  • http://www.youtube.com/mexipol1 Red Texas Tea

    This is nothing more than extortion.

  • Texas Jack

    In the meantime our Veterans still have to wait for medical treatments….