“Nearly a decade after the crash of the U.S. Housing market, the Obama adminstration continues to pursue claims against large financial institutions accused of contributing to the crash. For instanc…”
“Meaning, the DOJ unilaterally controlled the allocation of billions of dollars absent congressional and judicial involvement by forcing banks, under the terms of the settlement agreements, to distribute hundreds of millions of funds to third party organizations pre-approved by the Department of Housing and Urban Development (HUD). Moreover, the DOJ did not require third party disbursements to go to homeowners actually aggrieved by the alleged wrong doing. Of the $36.65 billion in total settlements reached by the DOJ with these three financial institutions alone, the DOJ earmarked $13.5 billion for “consumer relief,” of which hundreds of millions are to be dispersed to selected third party groups approved by the adminstration. Naturally, the third party organizations are all politically active radical leftists groups.
To understand how the shake-down works, the DOJ, as the federal government’s representative in Criminal and Civil suits affecting the interests of the United States, has the ability to enter into settlements with other parties. This isn’t the issue in question. What is in question is how the DOJ is using this power in order to execute settlement agreements requiring banks to disburse money to third party groups, rather than collecting fines that are appropriately subject to the Congressional appropriations process. The reason the DOJ is going this route, rather than imposing fines that would collect more money from the banks, is because under these settlement agreements the DOJ is allowed to act without any congressional oversight completely outside the purview of Congress itself.”