Holder Launches Witch Hunt Against Biased Banks

Paul Sperry, Investor's Business Daily, July 8, 2011

In what could be a repeat of the easy-lending cycle that led to the housing crisis, the Justice Department has asked several banks to relax their mortgage underwriting standards and approve loans for minorities with poor credit as part of a new crackdown on alleged discrimination, according to court documents reviewed by IBD.

Prosecutions have already generated more than $20 million in loan set-asides and other subsidies from banks that have settled out of court rather than battle the federal government and risk being branded racist. An additional 60 banks are under investigation, a DOJ spokeswoman says.

{snip}

Settlements include setting aside prime-rate mortgages for low-income blacks and Hispanics with blemished credit and even counting “public assistance” as valid income in mortgage applications.

In several cases, the government has ordered bank defendants to post in all their branches and marketing materials a notice informing minority customers that they cannot be turned down for credit because they receive public aid, such as unemployment benefits, welfare payments or food stamps.

Among other remedies: favorable interest rates and down-payment assistance for minority borrowers with weak credit.

For example, the government has ordered Midwest BankCentre to set aside almost $1 million in “special financing” for residents living in predominantly black areas of St. Louis. The program includes originating conventional home loans at fixed prime rates for African-American borrowers “who would ordinarily not qualify for such rates for reasons including the lack of required credit quality, income or down payment.”

The same federal order, signed last month, praises Midwest for adopting “less stringent underwriting criteria” while under investigation.

In the case against Citizens Bank of Detroit, settled in May, the U.S. decrees that “the bank may choose to apply more flexible underwriting standards in connection with the programs under this order.”

Such efforts risk recreating the government-imposed lax underwriting that led to the housing boom and bust, critics fear.

“It’s absolutely outrageous after what we’ve just gone through,” said former Rep. Ernest Istook, a Heritage Foundation fellow. “How can someone both be financially stable enough to merit a mortgage at the same time they’re on public assistance? By definition, you don’t have the kind of employment that can support such a loan.”

{snip}

Justice spokeswoman Xochitl Hinojosa said the anti-discrimination notice “does not compel the banks to make loans to people who do not qualify.” She said such measures are “essential to remedy the harmful effects of the banks’ conduct.”

But industry analysts fear Attorney General Eric Holder is rekindling an anti-bank witch hunt launched by Attorney General Janet Reno in the 1990s, when Holder served as her deputy.

Some blame that in part for the subprime boom, because banks were ordered to throw open their lending windows to credit-poor minorities. {snip}

In the new prosecutions, Justice acknowledges in every case it did not prove charges of intentional discrimination, while banks have denied any wrongdoing. Many, in fact, earned outstanding ratings from anti-redlining regulators enforcing the Community Reinvestment Act.

{snip}

As part of settlement deals, prosecutors have required banks to sign “nondisclosure agreements” barring them from talking about the methods used to allege discrimination. Bank lawyers contend the prosecutors are trying to hide the shaky legal grounds on which the cases are built. “It’s horrible what they’re doing at the civil rights division,” said Reginald Brown, a partner at Wilmer Hale in Washington, who has represented banks in connection to recent race-bias investigations. “They don’t have any proof, just theories.”

He added, “They want you to sign something saying you agree, under the condition of any settlement with them, that you won’t disclose what their theories were. That’s because their theories are loopy and wouldn’t stand the light of day.”

One such theory–“disparate impact”–holds that merely a difference in loan application outcomes is enough to prove racial discrimination–even if no intent exists on the part of loan officers to contrast based on the color of applicants, and even legitimate business factors–such as credit scores and down payments–help explain disparities in loan outcomes between white and black applicants.

{snip}

Following this theory, the government has ordered several banks to advertise in black media and open branches in black neighborhoods, despite the weak economy.

{snip}

Another Reno protege, Perez has compared bankers to Klansmen. Only difference is, he said, bankers discriminate “with a smile” and “fine print.” He said this kind of racism, though more subtle, is “every bit as destructive as the cross burned in a neighborhood.”

{snip}

Perez has required bank defendants to earmark potentially millions in funding for inner-city community organizers–who must be approved by Justice. Critics say lenders are being forced to bankroll Acorn clones that often exist just to shake them down for risky loans.

{snip}

Perez is also prosecuting banks for “reverse redlining through the targeting of minority communities for predatory loans.”

Istook finds it odd that the government is condemning lenders for doing too well what it pressured them to do in the name of diversity before the crisis. “Banks are damned if they do, damned if they don’t,” he said.

Also, critics say Justice is acting as a bank regulator by enforcing its own quota system for multicultural loans. The civil rights division has set “benchmarks” for minority lending, and will monitor bank lending volume and activity in that area among the banks it’s suing.

{snip}

[Editor’s Note: It is well worth reading the entirety of the original article. Be sure to click through.]

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  • told ya so, yep!

    If banks can’t use their muscle through their PACs and bought friends in Congress to protect them from this front in the race war, then we say let’em suffer.

    Not fighting back is the same thing a surrender.

    Transcend diversity, transcend black customers.

  • Brutha V

    Isn’t this exactly how the Fannie Mae/Freddie Mac debacle started out? It’s unfathomable to me that we’re going down the same road of the government requiring private institutions to extend credit to high risk individuals. Like Freddie & Fannie, I’m sure this will have Barney Frank and Maxine Water’s stamp of approval.

    Eric Holder (as well as Thomas Perez — Assistant Attorney General for the Civil Rights Division of the United States Department of Justice) is a menace to American society.

  • Anonymous

    The morally corrupt government is placing minority lending on a pedestal because they are desperate for debt created cash.

    The fight for economic recovery is over, and the battle is lost. This action is futile, and will deliver nothing but a short delay from the reckoning that’s coming.

  • Sureesh

    Notice how the article says “nonwhites” as if we are all in the same category as Blacks?

  • HH

    I KNEW this day would come(I’m surprised it has taken this long), yet still, it’s hard to believe Washington can be this stupid – or is it insane?!Surely they cannot expect different results – yet they repeat the mistakes precisely as committed before…and all in the name of Non-White America, of course.

    We live in a madhouse, not a nation!

  • Anonymous

    Is there any doubt left that they are trying to overwhelm and ultimately crash the system? Cloward and Piven would be proud.

  • E Pluribus Pluribus

    The pervasive myth that minorities are discriminated against by mortgage lenders has its foundation in a 1992 study by the Boston Fed. The Boston Fed study was a large part of the rationale for a two-decades-long attack on traditional lending standards, an attack that finally resulted in the collapse of the U. S. housing market in 2008.

    The Boston Fed study of 1992 has been debunked by four separate research teams. Time line:

    1992 – July – A Federal Reserve Bank of Boston study indicates that “even after controlling for financial, employment, and neighborhood characteristics, black and Hispanic mortgage applicants in the Boston metropolitan area are roughly 60 percent more likely to be turned down than whites.” The study suggests racism is behind the higher loan denial rate.

    1993 – Forbes Magazine queries Boston Fed Senior Vice President and Research Director Alicia H. Munnell on the default rates of black and white mortgage holders in the Boston Fed’s 1992 study purporting to show that racism is behind the higher loan denial rate for blacks. The reporters learn that default rates on loans of whites and minorities are equal. This indicates no discrimination, they point out to Munnell. “[That] is a sophisticated point,” she replies. “You need that [lower default rates for blacks] as a confirming piece of evidence. And we don’t have it.”

    Forbes: Did you ever ask the question that if defaults appear to be more or less the same among blacks and whites, that points to mortgage lenders making rational decisions?

    Munnell: No . . . I do believe that discrimination occurs.

    Forbes: You have no evidence?

    Munnell: I do not have evidence . . . No one has evidence. (1)

    1996 – A study by the Federal Reserve System and academic specialists finds — like the 1993 Forbes investigation — no evidence “of substantial levels of bias in mortgage lending.” Quoting from the abstract of the study:

    “Results of the analysis fail to find evidence of better performance on loans granted to minority borrowers. Indeed, black borrowers are found, all else being equal, to exhibit a higher likelihood of mortgage default than other borrowers. These findings argue against allegations of substantial levels of bias in mortgage lending.”

    1998 – October – Economists Stan L. Liebowitz and Theodore Day investigate the 1992 Boston Fed study suggesting racism in the mortgage market. They are “shocked at the poor quality” of the the data:

    ‘“When we attempted to conduct a statistical analysis removing the impact of . . . obvious data errors, we found that the evidence of discrimination vanished. Without discrimination there would be no reason to try to ‘fix’ the mortgage market. Nevertheless, our work largely evaporated down the memory hole as government regulators got busy putting the results of the Boston Fed study to use in creating policy. That policy, simply put, was to weaken underwriting standards.”

    The two economists warn: Bad loans today will mean dispossessed minorities tomorrow:

    “After the warm and fuzzy glow of ‘flexible underwriting standards’ has worn off, we may discover that they are nothing more than standards that led to bad loans . . . If this is the case, current policy will not have helped its intended beneficiaries if in future years they are dispossessed from their homes due to an inability to make their mortgage payments.” (2)

    1999 – Finance professors at the University of Illinois and at Wichita State University disclose findings on the creditworthiness of minorities consistent with the 1993 Forbes report, the 1996 Federal Reserve study cited earlier, and the 1998 findings of Liebowitz and Day:

    “[E]verything else being the same, minority applicants are probably less creditworthy, on average, than whites. Therefore, in the absence of fair lending laws, it is likely that minorities would be denied loans more frequently than whites and would pay higher interest rates and fees on approved loans . . . [F]air-lending laws have the perverse effect of forcing lenders to cross-subsidize minority borrowers from the higher profits they earn on white borrowers. Such cross-subsidization is inherently ‘unfair’ because it works as a tax on one group that is used as a subsidy for another.”

    NOTES:

    1) “The Hidden Clue,” By Peter Brimelow and Leslie Spencer, VDARE.com, first published in Forbes, Jan 4, 1993.

    2) “Mortgage Lending to Minorities: Where’s the Bias?” by Theodore Day and Stan J. Liebowitz. Economic Inquiry, January 1998): 1–27.

  • BLACK HAT

    The entire sub-prime mess was a direct result of the banks being forced to make mortgages for those who did not qualify.

    Can’t come up with 10% down? Racism

    Have bad credit? Racism

    Can’t hold down a job? Racism.

    Banks were FORCED to make loans that were called sub-prime and then Freddie and Fannie were FORCED to buy them (50% of their purchase had to be sub-prime).

    It was based on RACE. On SKIN COLOR. But that is NOT racist……… Me talking about it?…….is RACISM, but acting it out at the banks and mortgage companies is not racism…….what a country.

    Any first world industrial nation that attempts to pander to the Blacks will end up a 3rd world mess. You end up “de-industrializing” in order to fit them in. Blacks can’t live in a technical first world civilization.

  • BLACK HAT

    The entire sub-prime mess was a direct result of the banks being forced to make mortgages for those who did not qualify.

    Can’t come up with 10% down? Racism

    Have bad credit? Racism

    Can’t hold down a job? Racism.

    Banks were FORCED to make loans that were called sub-prime and then Freddie and Fannie were FORCED to buy them (50% of their purchase had to be sub-prime).

    It was based on RACE. On SKIN COLOR. But that is NOT racist……… Me talking about it?…….is RACISM, but acting it out at the banks and mortgage companies is not racism…….what a country.

    Any first world industrial nation that attempts to pander to the Blacks will end up a 3rd world mess. You end up “de-industrializing” in order to fit them in. Blacks can’t live in a technical first world civilization.

  • Jack

    “Justice spokeswoman Xochitl Hinojosa said the anti-discrimination notice “does not compel the banks to make loans to people who do not qualify.”

    You unbelievable big fat liar.

    That’s like claiming that you were not “compelled” to give me the money if I put a gun to your head and told you to withdraw 300$ from the ATM and give it to me.

    Why in the heck do we have a traitor government employee by the name of Xochitl?

  • sbuffalonative

    This may be a good thing.

    Running the experiment a second time and getting the same results would confirm that blacks and Hispanics are less credit worthy.

  • Anonymous

    “Settlements include setting aside prime-rate mortgages for low-income blacks and Hispanics with blemished credit and even counting “public assistance” as valid income in mortgage applications.”

    What? No free stuff for low income whites???

  • Anonymous

    “Settlements include setting aside prime-rate mortgages for low-income blacks and Hispanics with blemished credit and even counting “public assistance” as valid income in mortgage applications.”

    What? No free stuff for low income whites???

    All I can say is good… maybe white people will wake up!

  • Ben

    “In what could be a repeat of the easy-lending cycle that led to the housing crisis, the Justice Department has asked several banks to relax their mortgage underwriting standards and approve loans for minorities with poor credit as part of a new crackdown on alleged discrimination, according to court documents reviewed by IBD.”

    Oh? It is discrimination to not want to lend to those who have bad credit?

    This country is sinking faster than I thought.

  • OldWhiteBroad

    This is ridiculous. We need to get RID of these idiots in the WH. Making loans to people with bad credit is just as insane now as it was back when the market was good. Leveling the playing field has to be one of the stupidest concepts anyone has ever come up with. There is a REASON blacks are generally poor; who is so dumb they can’t get that? How about, no education, too lazy to work, too lazy to get qualified to work, preference for drugs, alcohol and sex over work, etc. etc. etc.? Oh, and let us NOT forget welfare – the almighty Welfare Check. Yeah, that’s real important here….

  • Anonymous

    My first thought on this story is what the heck kind of name is Xochitl and how would that be pronounced? Second thought was that I don’t really care about this reparation sponsor.

  • Mike

    Unreal. Apparently in Obama’s America, whitey can’t miss any payments on their mortgage because they need to subsidize minorities’ mortgages. These same minorities’ can then afford to move into whitey’s neighborhood and bring down housing values that whitey works so hard to maintain. All part of diversity in action!

  • Anonymous

    Didn’t we do this just recently and it ended in disaster? Credit measures are universal; how long have you had a job, how long with a single employer, family income, family debt, family expenses, personal credit history, and amount of down payment. Interestingly, if the down payments were 20% or more, the entire real estate melt down would have been avoided. Politicians can’t resist buying votes with other people’s money. Clearly Holder has no concept what credit is and how it works. It is a political gimmick to benefit his constituency.

  • LOUDMOUTH 57

    “Another Reno protege, Perez has compared bankers to Klansmen. Only difference is, he said, bankers discriminate “with a smile” and “fine print.” He said this kind of racism, though more subtle, is” “every bit as destructive as the cross burned in a neighborhood.” I don’t think so! However I do think the only difference between minority hucksters and Attila the Hun is the tools they use for plunder.Instead of using slings,arrows and battle axes as tools for plundering Europeans they plunder with whining,crying and hand wringing while trying to use a false sense of guilt to get the treasure. Then the big guns of our own justice system is perverted while being used against a whitey. I think those tools are getting a little shop worn.

  • SF Paul

    I well remember when I purchased a house some years ago, the first thing the banker said was that I needed a 20% down payment. No ifs ands or buts, 20% down, payments not exceeding 30% of my net income and proven prospects for future employment. That is not discrimination to me but I am sure Eric Holder would disagree. Justice Spokeswoman Xochitl (sounds like a medication I took) Hinojosa would say this is not proper conduct for a bank. It seems to me that in the long run it might cost less for the USA to give every black man, woman and child a million dollars and a letter of apology for slavery. Then end affirmative action once and for all. This article shows how Obama and Holder help their “people”. It is just insanity!

  • Istvan

    Holder, Obama and Company want to do to America what Mugabe did to Rhodesia. Eventually every barber shop and family pizza place will have to be 50% owned by a person of color. After the whole ponzi-scheme that is America 2011 collapses maybe our new Chinese overlords will allow us to have the lower-level management positions.

  • Morton

    Do these people lay awake at night thinking of ways to destroy our country.

    I ask not what is wrong with them, but instead what is wrong with us. The government no longer serves us, we serve it.

    It’s very sad how what has been paid for with the blood of young soldiers in the past it now given away to anyone not an American or someout out to ruin what we have had.

  • Robert Binion

    Is there anyone in the Obama administration (Biden?) who knows that government can not break up homogenous, white townships without destroying the vibrant economies that they create?

  • sbuffalonative

    As the AR editor noted, it is enlightening to read the entire article.

    Now we know why the Obama administration was so quick to bail out the banks. It gave them leverage to make the banks do as they wanted.

    Expanding the claim of “disparate impact” is also an interesting new use of the term.

    It seems our government is taking a back door approach to redistributing wealth. Since they can’t seem to get enough money to blacks through social programs, they’re now going to force banks to give them ‘loans’ of which few will ever be repaid.

    We also have the damned if you do, damned if you don’t scam going. Don’t give the poor loans, you’re a racist. Give the poor loans knowing they didn’t have the means to repay them (predatory lending) and straddling them with debt is also racism.

    When it comes to blacks, you can’t win. When dealing with blacks, you will always lose.

  • Anonymous

    “Notice how the article says “nonwhites” as if we are all in the same category as Blacks?”

    Perhaps you should ask bigoted leftists why that is.

  • White Lily

    There’s that term again: “disparate impact.” It always seems to indicate that statistical outcomes are being used to imply that discrimination is the cause of inequality, and therefore, an existing “injustice” can be corrected by Affirmative Action.

    Eric Holder is only upholding the law by seeing that the Justice Department is serving black people, no matter the costs or the consequences to everyone else.

    “Civil rights” legislation works to the detriment of the many, and for the benefit of a few. We really ought to cast off this ball and chain before it becomes a permanent anchor! Or am I already a half-century too late?

  • Anonymous

    “After the warm and fuzzy glow of ‘flexible underwriting standards’ has worn off, we may discover that they are nothing more than standards that led to bad loans … If this is the case, current policy will not have helped its intended beneficiaries if in future years they are dispossessed from their homes due to an inability to make their mortgage payments.”

    Except that no blacks are actually evicted from those homes (which often become worthless due to detroitification of the area where the home is). Instead, the taxes of white people pay off the loan when the government bails them out.

    Also, who used to live in the home before it was bought by a black person who never had any intention of paying off the mortgage. White people….who were ethnically cleansed out of the neighborhood by blacks moving into the area who then set to work raping, robbing and murdering the whites in an area (or as is going on today, marching down the street by the hundreds chanting “kill the whites, kill the whites”.

    What is going on here is our government is aiding and abetting a net transfer of property….whole communities, from white ownership to black ownership.

    How is this any different than what goes on in zimbabwe….where a bunch of murdering rapist thugs show up, tie a gasoline filled tire around the necks of the whites living someplace and then move in, without even bothering to bury the victims……and the government says its just.

  • Anonymous

    12 — Anonymous wrote at 8:01 PM on July 11:

    “Settlements include setting aside prime-rate mortgages for low-income blacks and Hispanics with blemished credit and even counting “public assistance” as valid income in mortgage applications.”

    15 — Anonymous wrote at 8:17 PM on July 11:

    My first thought on this story is what the heck kind of name is Xochitl and how would that be pronounced? Xochitl Hinojosa

    ______________________________________________________________

    To Anonymous #12 – I think this thing about “public assiatance” aka welfare scam has been going on for a long time, way before this current meltdown. I recall seeing a documentary at least 20 years ago about a family on welfare and how they were able to get a mortgage because their welfare paymments counted as income. I was shocked at the time, although at this point nothing shocks me anymore.

    To Anonymous #15 – It’s obviously an Indian name, although the last name is Spanish. Interesting that she’s a Justice

    “spokeswoman.” Hmmm, does she speak Spanish? Who knows?

    Some years ago when I worked in the pharmaceutical industry I had to call a government agency for something or other. The person I spoke to had a distinct accent. It seems the FedGov doesn’t like to hire native born Americans anymore and especially not White ones.

    Deo vindice!

  • Lost in Paradise

    Like generals fighting the last war… Buying a house right now is a mistake as the price is likely to only go down and stay down for many, many years. These clowns are not helping minorities, they are only getting them into worse financial trouble. But, they are too ignorant to understand this.

  • Anonymous

    Why is obama not being impeached?

  • Anonymous

    #1 — Qualified borrowers will, all other things being equal, prefer to do business with banks who appear in any way to discriminate in order to offer the best loans, because they know, like the Attorney General of the “Justice” Department and everyone else knows, that such banks are just trying to do good business and avoid bad loans and save costs.

    #2 — The borrowers who do not qualify are simply out of luck. And if some minority-run bank chain, or some method of government-funded loan guarantee program that somehow comes up with a legal and nondisciminatory way of justifying loans that others see as too risky, then they are just out-of-luck.

    #3 — The bank CEOs ought to know their business well enough to legally stare down any illegal coercion in a courtroom. If they don’t know their business that well then the whole industry is being mismanaged and is at risk.

    Making people fear being labeled a racist should be made into a primary goal. But I’m not talking about being a racist who

    discriminates against people of color. That goal has already been (over) achieved. I’m talking about being a racist against

    people who discriminates against anything American, and white.

    So far, the government already built up and maintains a welfare system that uses this kind of reverse discrimination to leave qualified white people in a pile of red tape while making sure mainly qualified nonwhite folk get most of the Section 8 housing, in addition to the usual food stamps, general welfare, Medicaid, and subsidized utilities and phone. That gets a two or three bedroom condo, groceries, medical bills, water, power, and either my monthly bus pass or maybe a good used clunker. And they can still shop at Food For Less and Walmart.

    Until the rest of us put a stop to this RACIST nonsense, they’ll be pushing for subsidized and/or bogus loans for a Michael Jackson lifestyle for every welfare recipient (properly colored, of course).

  • Anonymous

    One of the best laughs I have had all week. proves our leaders are raving lunatics. We have to be crazy not to impeach them legally instead of waiting two years to throw them out of office.

  • Anonymous

    Can I ask the BASIC question here? How come there are not set asides for POOR WHITES with bad credit? HUH?

    ONLY FOR BLACKS AND HISPANICS

    I’m sorry … america needs to stop being a racist anti-white country its SICKENING

  • XIXth

    This is pathetic. Apparently, Holder has learned nothing of the mortgage meltdown which was caused precisely because of the government requiring banks to lend more to minorities because they weren’t lending enough to them in the past. In other words, our Great Recession or 2nd Great Depression, in which all of your home equity value was OBLITERATED, was caused by AFFIRMATIVE ACTION. Either Holder and ilk are total morons (Possible), or actually wish to further destroy white middle class America with these policies (Probable).

  • Anonymous

    Sureesh wrote:

    Notice how the article says “nonwhites” as if we are all in the same category as Blacks.

    ________________

    I understand you.

    But you must understand that as far as Holder and his ilk are concerned, everyone who is dark skinned is “black”.

    That gives them more power to include everyone they can in their group.

  • Anonymous

    Why is the MSM remaining silent? And no, Investor’s Business Daily is not the MSM. Perhaps they realize that Obama could kiss any chance at reelection goodbye if the public were aware that he and his administration are leading us down the same path we have yet to recover from. My God, they just never let up sticking it to us, do they?!?

  • Turtle

    This is effectively a tax on people with good credit ratings. The long term consequence of this policy is to dry up credit to many middle-class borrowers by raising the credit requirements for them to receive a mortgage loan. Instead of 20%,22% or 25% down. Credit rating? Add another 50 to 100 points. Whites and Asians will find loans harder to get, simply because the banks won’t risk another melt down. They will control their risk through the only avenue open to them, Whites.

    Another possibility is exit from the primary mortgage market by certain lenders. They can avoid the whole problem by only purchase existing mortgages. Mortgages that they can exercise due diligence with without government interference.

    Causing or raising costs by government fiat is indirect taxation. This is a tax on White people.

  • Anonymous

    HH wrote at 6:20 PM on July 11:

    We live in a madhouse, not a nation!

    Modern America resembles this 1960s SciFi movie:

    “It’s a Madhouse!”

  • Anonymous

    a wave of blacks attacking whites and holder ignores it –

    he defended the black panthers when they were blatantly intimidating white voters.

    He has blatantly said he won’t press hate crime charges – we have considerable evidence that he and his justice department said they would only prosecute whites…yet…. white liberals STILL defend him.

    I have shown the evidence to liberals in my family – the pains they take to avoid it are amazing…

  • NAVY

    Forcing the banks to lend money to illegals is an outrage.

    Perez, and Holder stand for everthing evil that investigative journalist Cheri Seymour exposed in a recent interview.

  • Anonymous

    http://www.youtube.com/watch?v=nmPw8nLrxXQ

    We all must be made equal. Thanks big brother Holder.

  • Anonymous

    Brown-skinned mesoamericans with unpronounceable Indian names, sitting in high levels of government, dictating to the white-skinned private sector exactly how and with whom they must conduct their business…

    How is the present-day USA any different from Hugo Chavez’s Venezuela?

  • Ciccio

    Whilst the banks are undoubtedly dreadfully racist by not opening the floodgates of cheap credit to the deserving blacks, it is nowhere as racist as the manufacturing and wholesale industries.

    Just think of that poor black who has finally managed to open a neighbourhood store, just because he is black, most manufacturers won’t even deal with them. They sell to Wal Mart and Krogers and Costco only because they are white. And when that poor black retailer finally manages to get it from some wholesaler, it is often more expensive than for what Wal Mart sells it retail.

    This is the same argument justice is using against the banks, perhaps someone will point them towards this target.

  • White Lily

    Michele Bachmann claims to have a “titanium spine.” Since the last meltdown, she has been one of the very few politicians with enough of “the right stuff” to place some of the blame where it belongs: government coercion of banks and the Community Reinvestment Act.

    This latest attempted sabotage of the economy by the Obama/Holder regime could offer her the opportunity to again prove her mettle by turning it into a campaign issue. Let’s listen…and hope it’s not too late.

  • patthemick

    Well why not make these loans? As long as the government will bail you out and you will continue to collect your ridiculous salary why not? As far as I can see the only person who suffers by doing this are people who buy expensive homes to keep themselves separate from our rich diversity and do we really care about (THOSE) people?

  • Anonymous

    Like generals fighting the last war… Buying a house right now is a mistake as the price is likely to only go down and stay down for many, many years. These clowns are not helping minorities, they are only getting them into worse financial trouble. But, they are too ignorant to understand this

    No, actually then they will turn around and sue/pressure banks for ‘predatory lending’ towards minorities.

    Whites will keep paying and paying and paying.

  • Firepower

    Elite blacks are the WORST kind of RACISTS: the kind that hide behind the blessing of political power.

    America can only improve after it has completely fallen – but that horrible, dangerous rebuilding process does not guarantee improvement.

    It only guarantees decades of strife.

    But that appears the only way.

  • sshadow

    I’ve listened to a lot of cnbc podcasts and haven’t seen one word about this. It’s pretty bad when the major outlets won’t carry large portions of the most important news. Our Marxist news media is pathetic.

  • Shawn (the female)

    Anon #29.

    Because he’s black.

    Because he’s Democrat.

    Because he’s black.

    Because he’s bought and paid for.

    Because he’s black.

  • Cliff Yablonski

    The current administration and where we’re headed makes me begin to think that abolishing the federal government and letting the states return to a completely independant and self-sufficient status should be considered.

    What does our federal government do for us anymore other than cost gazzillions of dollars and make ridiculous decisions?

  • Alexandra

    HH:

    “We live in a madhouse, not a nation!”

    And the inmates are running the asylum.

  • Anonymous

    I still say, it would ultimately be cheaper to highlight the nature of these people’s existences and -give them- a small apartment or condo on the condition that they be sterilized after one child.

    Because we live in a nation which does not care to see it’s indigents and yet if we were to remove all support systems for our genetically and socially bereft, we would -have to- see them, in the millions.

    That said, if you run things like a permanent Projects environment with a fixed group expenditure under some corporate sponsorship system (amazing how cheap life can be when it’s bought in bulk) you do not have to feel guilty or wring your hands when someone doesn’t have the lifestyle you do.

    How do you send someone to jail for being homeless and jobless in this economic environment?

    Simple: they have a FREE lifestyle choice, maybe not a good one, maybe just a 500 square foot loft type apartment. But moving to this system would act as a buffer for when things get really hard (easier to lock them in) and it would ultimately _cost less_ than what we are being asked to do here which is create a system of wealth redistribution that fails to take into account the FUTURE ability of these people to buy their way back into the system.

    Give a

  • Gayle

    Isn’t this exactly what caused the housing/mortgage crash? Do-gooder blacks and whites who want minorities to own homes that they can’t afford. Problem is that people like Eric Holder don’t end up paying for these messes. We do.

  • Browser

    “Perez has compared bankers to Klansmen. Only difference is, he said, bankers discriminate “with a smile” and “fine print.” He said this kind of racism, though more subtle, is “every bit as destructive as the cross burned in a neighborhood.”

    __ __ __ __

    This nonsense is not merely wrong, it is sheer paranoia.

    I am not a banker, nor do i have any interest in defending them. But frankly, they are businessmen, and as businessmen they are interested in making money. They are not there to have fun discriminating against people (no money in that); they are there to make a profit. The more business, the better. They are not interested in your color; they are interested in your money. Anyone with half a brain would realize that bankers do not make money by turning away good customers. ANY good customer!

    They WANT the business. But they don’t want bad loans to bad customers. Simple? What’s so hard to understand here?