Administration forcing bank to fund loans people can’t afford.
In the new $13 billion JP Morgan Chase subprime loan deal with the Justice Department, Attorney General Eric Holder appears to have designed a multi-million dollar, backdoor kickback for activist groups like the disgraced community organizer ACORN.
Critics say the Obama administration has learned nothing from the mortgage meltdown in 2008-2009, which was prompted by the default of subprime loans packaged into financial instruments.
Instead, the administration is engineering a strategy to revive the subprime mortgage market by forcing banks to fund left-wing community organizing groups that would once again place low-income families into mortgages they can’t afford.
As Investor’s Business Daily pointed out in an editorial Tuesday, “Annex 2” of the JPMorgan settlement agreement, announced Nov. 19, mandates that “JPMorgan fork over any unclaimed or unpaid damages to a nonprofit group that finances Acorn clones and other shakedown groups.”
“Annex 2” specifies that JPMorgan pay out $4 billion in “consumer relief” to aid consumers harmed by its packaging of subprime loans into securities that were sold to institutional investors at the height of the housing boom.
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