Posted on 08/12/2010 3:29:56 AM PDT by Scanian
Buried deep inside the new "financial reform" law is a scheme to force affirmative action on small-business lending -- a "reform" with ominous implications for the US economy.
Aimed at curtailing supposed discrimination, the race-based lending mandate is guaranteed to have perverse effects -- just like the drive for "racial fairness" in mortgage lending paved the way for the subprime crisis and the 2008 financial meltdown.
The new Dodd-Frank banking law sets up a data-collection system to monitor small-business loans for racial bias. Lenders must report if a business that applied for a loan is minority-owned, and whether the application was rejected.
Bank examiners will use that data to enforce provisions of the Community Reinvestment Act -- the federal law that (after a Clinton-era rewrite) encouraged "flexible underwriting" and unsafe loans that fed the subprime bubble and bust. If a bank doesn't meet CRA standards, regulators make it impossible for the institution to expand or merge -- and in a competitive industry, that's a slow death sentence.
And the Obama administration plans not only to toughen CRA testing of lending to minorities and communities of color, but also to impose those tests on nonbank institutions -- independent mortgage companies, credit unions, insurers, securities firms and investment banks.
(Excerpt) Read more at nypost.com ...
More reparations.
Every freaking day, it just never ends.
The financial reform scam is unconstitutional on since Article 1 Section 8 does not specifically list regulating finance as an enumerated power! The people are not bound to comply with an unconstitutional act! People need to defend the Constitution by openly defying this marxist regime!
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The 'Dodd-Frank Wall Street Reform and Consumer Protection Act' is another step in the direction of more government and union domination of all that we do. Nothing in the Act controls Fannie Mae and Freddie Mac--they remain a multibillion dollar drain on the US Treasury--or the financial disasters their corruption and poor management have created.
This bill was used to get unions more control of companies, and to get minorities and women more jobs where they can never be fired. Publicly traded companies will need to allow the unions and enviro groups to seat their members on the boards of said corporations. Also an enlarged staff at SEC, CFTC and the Fed stuffed with faithful and deserving Democrats selected by Chicago style patronage. I can't wait for the minions of Sheila Jackson Lee to be seated on the Board of _______ [you fill in the blank]. God help us.
The bill will punish businesses that are not unionized. That's the purpose of this bill. Now that's change that we can believe in -- NOT! How many more will leave for foreign soil?
This picture of Frank and Dodd congratulating everyone on the 'reform' is f'in unbelievable! The two biggest culprits in the original damage to the economy. Why are these men not in jail?
We're in deep, deep economic trouble. And these liberals are going to friggin' sing and dance along, all the way, as they dance off a cliff.
Great comment. Too bad there isn’t a profit to be made in rope futures. The looters are in charge.
Obama&Co. law my way or else.
Get an updated picture of the Atlanta rent subsidy application riots of the other day. 30,000 that time!
LLS
I didn’t hear ONE word about the riots except on Rush.
So you're damned if you do and damned if you don't.
Advance America, the largest pay day lender in the state, has now closed three-fourths of their stores in the state, while flourishing in free market environments elsewhere. Others have closed too.
bump
"I didn’t hear ONE word about the riots except on Rush."The media, of course, is going to hide this dynamic. As ghetto-America becomes more feral, violent, racist and increasing in their sense of entitlement, look for behavior like this to increase, to the point that they will come into your neighborhoods and steal/rape/murder with impunity.
Law enforcement cannot or will not act to stop this. We, the producers of this country, have a big target on our backs, and the law has been turned against us; we have no ally anymore. Is anyone surprised that gun and ammo sales are going through the roof? Ther mainstream of America sees where this road is headed. It's a dead-end street towards Civil War, and the governemnt is aligned against us, and WITH the violent rabble. We will fight a war on two fronts.
Any law like that is invalid and unconstitutional.
And then they must prove their innocence. THANK YOU, SCOTT BROWN!
Mark
Why is it that politicians insist that all people should be treated equally but then force us to treat so called “minorities” with pity and need special help because they can’t fend for themselves??
these freakin’ rocket scientists are dynamiting the country.
Watch...what comes next ...is that a cadre of bureaucrats will be assigned to “force” bank lending out the door...to “make” jobs of course!!!
Forget the sense of entitlement. It is about jobs and employment. According to the BLS statistics for July, the black unemploment rate (U-3) is 15.6% and for Hispanics, 12.1 percent. Whites have 8.6% and Asians 8.2%. The U-6 rate is 16.7% unadjusted.
The unemployment rate for native-born blacks with less than a high school education is 27.5 percent. Their U-6 measure is 42 percent.
The unemployment rate for young native-born blacks (18-29) with only a high school education is 25.8 percent. Their U-6 measure is 37.4 percent.
The unemployment rate for native-born Hispanics with less than a high school education is 22.6 percent. Their U-6 measure is 36.5 percent.
The unemployment rate for young native-born Hispanics (18-29) with only a high school degree is 21.3 percent. Their U-6 measure is 32.7 percent.
I agree that this situation will eventually lead to violence based on invidious comparisons between the haves (mostly whites and asians) and the have nots (mostly black and Hispanic.) The gap between unemployment rates rests in most part upon education or the lack thereof. With 50% or more of school dropout rates for Hispanics and blacks, they will be facing a bleak future and greater dependence on big government. By 2023, half of the children 18 and under in this country will be minorities as defined by the USG. Unless we find a solution to the social and education problems extant in the black and hispanic communities, we are facing as a nation a very grim future.
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