Tuesday, August 24, 2010

2: Obama Accounting: Black Funding & Lawsuit Settlements

The Obama/Holder Department of Justice (DoJ):
Directing lawsuit settlement awards to DoJ-favored "qualified organizations".

DoJ lawsuit settlement monies traditionally are restricted to injured parties. The Obama/Holder DoJ now directs lawsuit monies to favored community organizing groups who may sponsor education and advocacy programs related to lawsuit issues. These monies are demanded by DoJ in pre-trial-type settlements in which there has been no finding of wrongdoing and in excess of restitution amounts.

In US v. AIG & Wilmington Finance, DoJ demanded $6.1 million, the largest settlement awarded to US DoJ plaintiffs who may have suffered as a result of an alleged violation. AIG was not found guilty of Fair Housing Act and Equal Credit Opportunity Act violation allegations in allowing third party wholesale mortgage brokers to charge African-American borrowers higher direct broker fees.

DoJ further demanded $1 million to be paid to approved ACORN-type community organizing organizations for credit counseling and financial literacy programs.

Similar "settlement-plus" tactics were used at the state level by Minnesota "wannabe governor" Attorney General Mike Hatch. Hatch settled with Capital One Bank for allegations of fraudulent advertising for $749,999, $1 short of the amount required to be more rigorously reported. The settlement was a 3-way split between the State of Minnesota, Legal Aid, and ACORN. ACORN later announced its support of Mike Hatch for governor of Minnesota.
Obama Accounting:
...Law (sic, is) a sort of glorified accounting that serves to regulate the affairs of those who have power-...


There are several recurring Obama financial themes:
1. Strong-arming corporations for large pre-trial settlements.
It may produce revenue for the Obama Administration. But it appears extortionate, given the failure of the DoJ to make a finding of wrongdoing.
It also is inflationary: Capital One Bank increased its overall consumer interest charges. Some customer APRs were increased 6-8%, while customers were notified this was a corporate decision unrelated to the consumer's credit.

2. Obama/Holder DoJ "settlement-plus" amounts are earmarked for Obama-approved ACORN type community organizer groups which target mostly Afro-American or other ethnic groups for education and advocacy programs. This does discrimate against white mainstream and other Americans, it is an example of "reverse racism".

3. Obama/Holder DoJ "settlement-plus" amounts are earmarked for Obama and Democratic candidate supporters, pay-forwards or pay-backs for community organizing for votes.

4. Obama has a legal habit of looking at his last lawsuit for his next lawsuit. It was true in Chicago with Voter Registration and ACORN and its true in Washington, DC. Obama bailed out AIG with $180 billion. Recently AIG reduced its loan by
$4 billion with The Reserve Bank of NY to $15 billion. The AIG/Wilimington Reserve Bank DoJ settlement takes back $6.1 million, plus $1 million, from another AIG company.

5. The wholesale mortgage issues in the AIG/Wilmington Reserve Bank "settlement-plus" do not appear to be related to retail consumer credit and financial literacy education programs delivered by ACORN-type community organizer companies. The Security & Exchange Commission (SEC) might be needed to sort out real vs. sham issues in moving AIG monies.

6. "De facto" discrimination cannot be a legitimate legal cause to be used by a black advocacy Administration to payout monies to blacks and their political allies. Are Obama/Holder willing to payout to whites, who are thusly discriminated against by not being offered housing in less expensive predominantly or totally colored neighborhoods?

More on "Obama Accounting" in the next blog in this series.

References: www.wikipedia.com, HotAir.com, The Washington Examiner.

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