Monday, August 29, 2016

Cathedral in Action

Tens of millions of dollars disguised as ‘consumer relief’ are going to liberal political groups.
The administration’s multiyear campaign against the banking industry has quietly steered money to organizations and politicians who are working to ensure liberal policy and political victories at every level of government. The conduit for this funding is the Residential Mortgage-Backed Securities Working Group, a coalition of federal and state regulators and prosecutors created in 2012 to “identify, investigate, and prosecute instances of wrongdoing” in the residential mortgage-backed securities market. In conjunction with the Justice Department, the RMBS Working Group has reached multibillion-dollar settlements with essentially every major bank in America.

The most recent came in April when the Justice Department announced a $5.1 billion settlement with Goldman Sachs. In February Morgan Stanley agreed to a $3.2 billion settlement. Previous targets were Citigroup ($7 billion), J.P. Morgan Chase ($13 billion), and Bank of America, which in 2014 reached the largest civil settlement in American history at $16.65 billion. Smaller deals with other banks have also been announced.

Combined, the banks must divert well over $11 billion into “consumer relief,” which is supposed to benefit homeowners harmed during the Great Recession. Yet it is unknown how much, if any, of the banks’ settlement money will find its way to individual homeowners. Instead, a substantial portion is allocated to private, nonprofit organizations drawn from a federally approved list. Some groups on the list—Catholic Charities, for instance—are relatively nonpolitical. Others—La Raza, the National Urban League, the National Community Reinvestment Coalition and more—are anything but.
One of the most amusing things is the anti-bank comments from the progressives. They don't want to stop the banks at all. They want money.

The greatest threat to progressives is anti-central bank policy. Destroy the central bank and Wall Street/banks go down, the U.S. loses reserve currency status, the U.S. treasury can no longer fund deficit spending. Inflated stock prices can no longer support valueless profitless companies like Twitter. Power would shift to industries that create and export: manufacturing, farmers, oil drillers. Progressive unemployment would soar, the media would be screaming like you have never seen.

H/T: Countenance Blog.

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