Former president Barack Hussein Obama’s big bank bailout, used to save banks after the financial crash in 2008, wasn’t popular. Obama insisted it was necessary, however, as a response to a dire emergency: “Experts told us that if we did not act, we might face a second Great Depression. So we acted immediately and aggressively,” he said.
Yet the Obama administration’s bailout included “unprecedented back-door funding for dozens of Democratic activist groups,” according to the New York Post, groups that are not victims of the crisis and who are now getting in the way of current president Donald J. Trump.
As the anti-Trump “resistance” movement continues to aggressively fight President Trump’s policies – including fighting corporate tax cuts, the repeal of Obama-era banking and Obamacare – NY Post says Wall Street is inadvertently helping to bankroll them.
Vice president of Cause of Action Institute, Julie Smith, stated, “During the Obama administration, groups committed to ‘revolutionary social change’ sent proposals and met with high-level HUD and Justice Department officials to try to get their pieces of the settlement pie.”
From NY Post:
“At least three liberal nonprofit organizations the Justice Department approved to receive funds from multibillion-dollar mortgage settlements were instrumental in killing the ObamaCare repeal bill and are now lobbying against GOP tax reform, as well as efforts to rein in illegal immigration.
“An estimated $640 million has been diverted into what critics say is an improper, if not unconstitutional, ‘slush fund’ fed from government settlements with JPMorgan Chase and Co., Citigroup Inc. and Bank of America Corp., according to congressional sources.
“The payola is potentially earmarked for third-party interest groups approved by the Justice Department and HUD without requiring any proof of how the funds will be spent. Many of the recipients so far are radical leftist organizations who solicited the settlement cash from the administration even though they were not parties to the lawsuits, records show.”
The beneficiaries of those funds are now some of the groups working against the Trump administration and its policies. According to the report, these include:
- The National Council of La Raza – A Hispanic-rights group, labeled as a “notoriously radical organization,” which advocates on behalf of illegal immigrants.
- The National Urban League – An African-American advocacy group which solicited its supporters to oppose efforts to repeal ObamaCare.
- National Community Reinvestment Coalition – a liberal housing-rights group which has resisted tax-reform proposals by the Trump administration, while trying to block efforts to privatize mortgage giants Fannie Mae and Freddie Mac. They have also lobbied against a regulatory repeal of many provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
At this time, it’s unknown how much money has been diverted from settlement funds to left-wing organizations.
Attorney General Jeff Sessions has reportedly ordered a full audit of the funds and further discontinued the practice of funneling Justice Department settlements to third-party groups.
“Any settlement funds should go first to the victims and then to the American people [through the US Treasury] — not to bankroll third-party special interest groups or the political friends of whoever is in power,” Sessions said in a recent statement.
The NY Post reported that the Consumer Financial Protection Bureau (CFPB) is still forcing the financial institutions it prosecutes to donate to third-party community organizers. The CFPB director is Richard Cordray, an Obama holdover whose term doesn’t expire until 2018.
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