Posted on 01/15/2014 5:19:47 PM PST by jazusamo
War On Banks: Attorney General Eric Holder has opened up a new front against car lenders and has forged an alliance with the Consumer Financial Protection Bureau to frame them for racism, too.
We don't use the term "frame" capriciously, certainly not like Holder uses the charge of racism.
His department and the president's new consumer credit watchdog agency, CFPB, have announced a new settlement with Ally Bank for nearly $100 million.
It's the largest fair lending deal against the auto industry and the third-largest ever to resolve charges of lending discrimination.
Throw in four new mortgage-lender settlements over equally groundless allegations — including last month's $35 million joint Justice Department-CFPB hit on Cleveland-based National City Bank — and the total financial industry shakedown by this administration now stands at an eye-popping $810 million.
In its complaint against Ally, Justice alleged that the bank "charged African-American borrowers more than white borrowers in interest-rate markups not based on creditworthiness or other objective criteria related to borrower risk."
It says a statistical analysis of loans conducted by CFPB researchers found a "disparity" of 29 basis points compared with rates charged "similarly situated" white borrowers.
The surcharge is so "statistically significant," it contends, it can't be a function of anything but racism.
Let's unpack that statement, because it contains a big load of rubbish.
For starters, Justice had to guess the race of Ally's black customers from Census data for black neighborhoods. The auto-finance industry does not report the race of borrowers like the mortgage industry.
(Excerpt) Read more at news.investors.com ...
I did good remembering Hamlet from my H.S. days in the late 70s.
Maybe that bunch can hire Jesse Jackson to teach them how to get it done.
“Negritude”
*******
Never heard that one but I like it.
Thank you.
At the consumer level we see “changed lending poilcies”. As for the actual settlement money.....?
Shaking down banks? Who does he think he is, Chris Dodd?
Sounds more like a kickback/money laundering scheme, to benefit Fedgov employees and Dem politicians who love them.
LOL! Chris Dodd and Eric holder = SLIPPERY.
Yes, Ally is the old GMAC and it could be exactly that.
As long as there is a Leftist, a Democrat in Government nobody is safe.
“”Neither a borrower nor a lender be.” “
That was Polonius’s advice to Laertes.
.
Pointed out to me by poster Blood of Tyrants.
My mistake.
29 basis points translates to .29% interest. So instead of a 4.00% rate the rate is 4.29%. Big deal.
You 50 IQ black morons have no idea of the storm coming at you. You will be accommodated to your stupid black heritage and sent back to your African roots at the dark continent. You’ve had 150 years of chances to meld with American society, you dopes, and failed.
Too bad Jesse Jackson couldn't copyright an extortion technique.
We all be pickin' dey cotton now.
So the kakistocrats are now shaking down the banksters?
There, fixed it.
Ally Bank used to be GMAC. The Government got their money when they took over GMAC. So don’t understand what they are talking about.
Ally Bank used to be GMAC. The Government got their money when they took over GMAC. So don’t understand what they are talking about.
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