Bank of America, after receiving large tax payer bail out money, is attempting a $335 million settlement with the U.S. Justice Department over a lawsuit alleging that Countrywide, owned by BofA, violated fair lending practices from 2004 to 2008. This is the largest settlement of its kind to date. This also explains some of the reported "record profits" on WallStreet over the past few years. It is simply not logical to believe that banks made record profits by following the letter of the law.
Over 200,000 African-American and Hispanic buyers were discriminated against by Countrywide's practices of charging them higher interest rates than white customers and guiding them towards sub-prime adjustable rate mortgages.
This also is not the first time that Countrywide has been in trouble. In 2008, Countrywide reportedly participated in a "V.I.P program" allowing executives from Freddie Mac and Fannie Mae to buy homes at "favorable rates." In December, 2010, Bank of America settled with Fannie and Freddie for a total of $3 billion for another Countrywide ethics breach. There is still some discussion as to the accuracy of those numbers and the legality of the actions involving Fannie, Freddie, Countrywide and BofA.
Now, add to that mix Newt Gingrich advising Freddie Mac. Gingrich received a $300,000 payment from Freddie Mac in 2006. That happens to be right in the middle of the time period when all the illegal lending was taking place.
And for good measure, consider the allegations of Tea Party racism.
What are the take-aways?
1 - WallStreet needs government supervision to prevent lawsuits arising from their illegal lending practices. They will rip off the consumer any chance they get.
2 - Bank of America should have never received one penny of bail out money. The Occupy protestors are at their front door demanding their stolen money back, and they should get it.
3 - Do not trust anything that Newt Gingrich says. Remember, he was found guilty of ethics violations when he was in Congress. He is most likely involved in these illegal lending practices somehow even if a paper trail cannot be produced to prove it.
4 - Republicans are racists. In one breath they talk about immigration being the heart and soul of American. In the next, they talk about deportation of illegal immigrants. And when the cameras shut off, they are taking advantage of blacks and Hispanics to line their own pockets. Or, as is the case with Mitt Romney, hiring illegals to do cheap labor. When the camera turned back on and he was "running for President for Pete's sake," the illegals could not be used any longer.
Newt Gingrich also made racists statements when advocating that young black children work in their schools instead of becoming "pimps and prostitutes." He didn't use the word "black" in his comments, it was implied.
Remember, it was a Republican (Richard Russell) that used the filibuster in the Senate to keep the Civil Rights Act from being passed.
And the most blatant evidence of Republican racism in Congress is their vow to stop doing anything until our black President is out of office.
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Comments: 23 ( 2 removed by Lora Covrett )
But, who do you think he meant? He was not talking about poor white kids becoming pimps and prostitutes and everybody with a brain knows it.
And Cain did catch some flack about being a black Republican. To which he responded that blacks were "brainwashed" into supporting Democrats. There's no brainwashing. History is full of facts on how the Republican party feels about minorities -- ALL minorities -- blacks, hispanics, gays and women.
There's evidence of the GOP being sexists against women by then wanting to defund Planned Parenthood and reverse Roe v. Wade!!!
Sarah Palin was just a pretty face -- and even that got old after a while. She was not a serious candidate. She's too dumb.
Michelle Bachman is the real deal but she won't get far. It appeared that she even felt discriminated against in the last debate where she had to say to Newt Gingrich "I am a serious candidate for President." Why would she have to point that out? I think she's one of the smartest ones on the stage in every debate and I certainly do take her seriously. Perhaps her own male counterparts do not?
Take a look back through history to see how Republicans treat blacks. Pay close attention to the Civil Rights Act of 1957. Republicans blocked that legislation from becoming law for nearly a decade.
These are facts.
Go study and then get back to me. :)
Ron Paul is not a bad person though (can't say that for some of the others).
Wow, you did a fantastic job writing this article, I knew of the massive law suits against Bank of America Mafia owned/operated for decades, I didn't know about Republican (Richard Russell) that used the filibuster in the Senate to keep the Civil Rights Act from being passed.
Lora, furthermore your writing is meticulous! Exceptional job of writing this article, and I learned a lot from reading it as well, no surprise here many of your posts on gather.com are excemplary!
"In 2008, Countrywide reportedly participated in a "V.I.P program" allowing executives from Freddie Mac and Fannie Mae to buy homes at "favorable rates.""
Not just executives from Fannie and Freddie. Two of the biggest abusers of this were none other than Senator Chris Dodd and Senator Kent Conrad. Being that they were are both Democrats, I can see why you forgot to mention them. Dodd went on to author the Financial Reform bill with Barney Frank (we'll get to him next). How ironic.
"Now, add to that mix Newt Gingrich advising Freddie Mac. Gingrich received a $300,000 payment from Freddie Mac in 2006. That happens to be right in the middle of the time period when all the illegal lending was taking place."
And remember, Barney Frank was taking political contributions from Fannie and Freddie during those times also, even getting his boyfriend a job there. This while he repeatedly claimed Fannie and Freddie were financially sound. Another high ranking democrat you seem to have forgotten about.
On a final note, how you made the jump from all of the above to the Tea Party, newt, and Republicans are racist just defies logic.
How this article made it to Gather's Politics page is comical.
Yeah, and?
Frank received $40,000 in campaign contributions...and he's resigning from office, not running for President. That doesn't make it right, and your point is taken.
However, Gingrich received millions from Freddie and he IS running for President.
The Tea Party comes into this because most the Republican candidates are Tea Party backed (including Newt) and the Tea Party has been accused of racism.
Newt has made repeated statements with racist undertones.
Newt is linked to Freddie Mac -- Countrywide is linked to Freddie -- and thus linked to BofA, who is settling a lawsuit for racism --- makes perfect sense to me how that all went full-circle.
There's no direct link from Newt Gingrich to Bank of America charging blacks and hispanics more interest. And as the article states, there is no paper trail to prove anything but the timeline definitely should raise a few eyebrows.
Some sources:
http://iusbvision.wordpress.com/2008/09/30/obama-sued-citibank-under-cra-to-force-it-to-make-bad-loans/ - long but good
http://www.lewrockwell.com/dilorenzo/dilorenzo125.html