AG Holder shakes down ‘racist’ lenders to tune of $1 billion

AG Holder shakes down ‘racist’ lenders to tune of $1 billion

Eric HolderThere was a time when the nation’s leading shakedown artist was racial grievance monger Jesse Jackson. Now, sadly, it’s our “top cop,” Attorney General Eric Holder. The AG’s brand of extortion involves sums of money so large they make the fruits of Jackson’s rackets look like chump change.

Worse yet, Holder’s charges of racial inequity are often based on pure guesswork. Take the latest chapter in his “war on banks,” as narrated by

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.

But wait till you get a load of Justice-CFPB’s evidence that Ally is charging “African-American borrowers more than white borrowers in interest-rate markups not based on creditworthiness or other objective criteria related to borrower risk.”

In the complaint, the feds concede that “ethnicity data is not available.” Unlike the mortgage industry, the auto-finance industry doesn’t report the race of borrowers. So how did Justice come up with the claim that Ally discriminated against black customers? They looked at Census data for black neighborhoods and tried to guess which customers were black, probably using first names as a clue.

In short, real “victims” were never actually identified. That explains the wording of the complaint, which alleges that Ally discriminated against “approximately” 100,000 black borrowers.

Investors goes on to write:

More shocking, civil-rights prosecutors never actually checked the creditworthiness of those borrowers…. [T]hey never looked at credit scores, down payments, debt or other key risk-related factors banks consider to set interest rates. Not for blacks, or for supposedly “similarly situated” whites.

So how in the world can Justice claim “Ally’s specific policy and practice are not justified by a legitimate business need?”

In reporting on this story yesterday, Tammy Bruce wrote:

Today we remember Martin Luther King Jr.

A man of great dignity and grace.

A man who “Had a Dream.”

And now?

A race-baiting POTUS.

We’ve gone from “I Have A Dream” to “I’ve Got A Pen”

And a Shakedown Artist Attorney General who sees racism everywhere.

Even when it does not exist.

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