Bank of America (BAC) must turn over excess funds from a record $335 million discrimination fine to community organizing groups. Critics say it’s a “political backdoor” to subsidize Democrat-tied Acorn “clones.”
The unusual mandate is buried in a Justice Department filing last month detailing settlement terms with the nation’s largest bank. Prosecutors had alleged BofA’s Countrywide Financial mortgage unit discriminated against minority homebuyers in the years leading up to the financial crisis.
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Funds not passed out to alleged victims after two years will be handed out to “qualified” groups unconnected to the case that provide credit and housing counseling and similar services to blacks and Hispanics in areas where the discrimination allegedly occurred.
Prosecutors say the more than 200,000 alleged victims of Countrywide subprime loans reside chiefly in Chicago, Detroit, Los Angeles, Phoenix, Las Vegas, Denver, Houston, Dallas, Atlanta and Washington, D.C. Community organizing groups have large operations in these cities.
The order further states that recipients of such funds can’t be tied to Bank of America. But they can include nonprofits that offer financial education, counseling and other aid related to mortgage programs to which BofA has “furnished substantial support.”
Read More at Investor’s Business Daily By Paul Sperry, Investor’s Business Daily