The man who’d break the banks of America 2

Obama took a leading role in causing the subprime housing crisis which triggered the recession, but he blames it on the financial institutions which he forced to provide the bad loans.

This is an editorial from Investor’s Business Daily:

Obama pushed thousands of credit-poor blacks into homes they couldn’t afford. As a civil-rights attorney, he sued banks to rubberstamp mortgages for urban residents.

Many are now in foreclosure. …

Obama focused on “housing rights” when he worked as a lawyer-activist and community organizer in South Side Chicago. His mentor — the man who placed him in his first job there — wasthe father of the anti-redlining movement: John McKnight. He coined the term “redlining” to describe the mapping off of minority neighborhoods from home loans.

McKnight wrote a letter for Obama that helped him get into Harvard. After he graduated, [Obama] worked for a Chicago civil-rights law firm that worked closely with McKnight’s radical Gamaliel Foundation and National People’s Action, as well as Acorn, to solicit lending-discrimination cases.

At the time, NPA and Acorn were lobbying the Clinton administration to tighten enforcement of anti-redlining laws.

They also dispatched bus loads of goons trained by Obama to the doorsteps of bankers to demand more home loans for minorities. Acorn even crashed the lobby of Citibank’s headquarters in New York and accused it of discriminating against blacks.

The pressure worked. In 1994, Clinton’s top bank regulators signed a landmark anti-redlining policy that declared traditional mortgage underwriting standards racist and mandated banks apply easier lending rules for minorities.

Also that year, Attorney General Janet Reno and her aide Eric Holder filed a mortgage discrimination case against a Washington-area bank that forced it to target minority neighborhoods for subprime loans. Reno and Holder also encouraged civil-rights lawyers like Obama to file local lending-bias cases against banks.

The next year, Obama led a class-action suit against Citibank on behalf of several Chicago minorities who claimed they were rejected for home loans because of the color of their skin. …

Which was untrue. Would-be borrowers, whatever their race, who can provide no deposit and have no job are  – obviously, you may think – not eligible for loans.

But Citibank eventually settled, despite the weak case. Under the 1998 settlement, Citibank vowed to pay the alleged victims $1.4 million and launch a program to boost home lending to poor blacks in the metro area.

Citibank underwrote thousands of shaky subprime mortgages to satisfy the court in Obama’s case. Defaults were common. When home prices collapsed, most of the loans went bust.

By putting them on the hook for loans they couldn’t pay, Obama did them no favors. Blacks have been hit hardest by foreclosures. But what does Obama care …  he pocketed at least $23,000 from the Citibank case.

Today, he blames the devastating wealth drain in black communities on [the very] subprime mortgages [he insisted upon]. He says “greedy,” “predatory” lenders tricked poor minorities into paying higher fees and interest rates.

His closest economic advisers also promoted subprime lending. … [His] Chicago pal Austan Goolsbee, who later became his top economist, sang the praises of subprime loans in a New York Times column. He argued they allowed poor blacks “access to mortgages.”

One of Obama’s top bank regulators, Gary Gensler, once bragged that thanks to subprime mortgages, banks made home loans to minorities at “twice the rate” they made to other borrowers … “A subprime loan is a good option when the alternative is no access to credit,” he said years before the crisis.

Obama hasn’t learned from his mistakes.

Far from it … The mammoth credit watchdog agency he created (with input from NPA radicals) will dust off Clinton’s 1994 minority lending guidelines to crack down on stingy lenders. And he’s ordered Holder, now acting as his attorney general, to prosecute banks that don’t open branches in blighted urban areas.

Not only has Obama scapegoated banks for the crisis he helped cause, he’s exploited minority suffering to continue reckless policies that hurt those he claims to champion.

But the bankers do have a share in the blame. Only it is their weakness, not their economic might, that should be held against them.

Now, against their better judgment and common sense, they are letting themselves be forced by Obama into yet another money-squandering scheme. While he has learnt nothing from the subprime disaster, they have failed to acquire a spine.

His new demand is that the banks throw masses of moola down the gullet of Gaia, the Goddess of the Green religion.

And again, though it couldn’t be more obvious that Obama’s demands are a recipe for bankruptcy, they meekly comply!

Obama’s goal is to wreck the capitalist system. Can the bankers not see this? Or have they decided it’s a jolly good idea?

This also comes from from IBD:

First the affordable housing crowd shook down banks for mortgage payola for the poor. Now the environmental lobby is shaking them down for cash to underwrite President Obama’s risky green agenda.

Risky? More like a dead cert loser.

In a strange announcement, Bank of America this week pledged an eye-popping $50 billion in loans for “renewable energy” projects — windmills, solar panels and hybrids — over the next 10 years.

The Charlotte, N.C.-based bank joins a number of other large banks making green commitments amid complaints from environmental groups that they finance coal extraction, the new bugaboo of the left.

Wells Fargo has already committed $30 billion in green payola. JPMorgan Chase has pumped nearly $7 billion into renewable energy projects.

Just as they bowed to bullying by Obama-supported NPA and ACORN into giving loans to borrowers who could not possibly repay them, they are now bowing to the same tactics used by greenies.

BofA upped the ante just one month after five radical greenies climbed Bank of America stadium in Charlotte, N.C., and unfurled a 70-foot-wide banner rebranding the stadium the “Bank of Coal.”

A group called Rainforest Action Network took credit for the stunt. A San Francisco-based green version of ACORN, founded by an anti-capitalist Obama donor [who no doubt became rich enough to be a donor through capitalist enterprise], RAN wanted to highlight BofA’s funding of coal plants, which it claims cause global warming. …

RAN sent its goons to BofA’s annual meeting. They demanded the bank stop funding coal mining — specifically mountaintop clearing — and “expand investments in renewable energy.”

BofA … agreed to stop funding mountaintop mining and start funding windmills, even though coal is a more cost-efficient energy source — and far more profitable than alternatives.

What mysterious perversion of their minds drives the beneficiaries of capitalism to wreck it?

Why would the nation’s largest bank let tree huggers dictate its investments? The same reason it agreed to underwrite billions in risky mortgages in response to threats from ACORN and other housing shakedown groups: to protect its corporate brand.

Is that why? How is its corporate brand protected by its heading for bankruptcy?

Just like banks didn’t want to be labeled “racists” then, they don’t want to be branded “polluters” now.

And extortionists like RAN, who play dirty, attacking bankers on vacation and at graduation speeches, prey on that fear. Their subversive tactics work. They know CEOs will pay them off if they apply enough pressure.

Only, BofA, Wells Fargo, Citibank and other banking giants already paid off housing-rights groups literally trillions of dollars in mortgage commitments in the run-up to the housing crisis. Yet, they’re all being sued now for lending discrimination.

Now they’re falling into the next trap. Obama and his pals are using the banking system to finance their illusory Green Economy. …

Put plainly, these are socialists trying to destroy our free enterprise system.

These Giants of Finance are not evil as Obama and the “Occupy” revolutionaries like to pretend, they are merely fools and cowards. But if many of those who have their hands on the levers of power are foolish and cowardly, they can ruin a nation.

The IBD advises them to “unapologetically defend your business and the capitalist system, make it clear your obligation is to customers and shareholders — not radical activists.”

We doubt they’ll take such sensible advice.

To fatten a cat 0

Redistribution is Socialism. No need to go looking for some dead economist’s definition of the S word. If a central agency with the power of coercion, which is to say a government, takes money from some and distributes it to others, that is Socialism in practice.  The reach of government is widened, individual freedom narrowed.

It should not be called an economic system, because it cannot create wealth. It stultifies innovation and productivity. It kills incentive. It levels down. It is the primrose path to poverty.

Under the leadership of Obama and his gang of collectivists, redistribution is well under way in America. Change to Socialism is well under way.

And Obama’s vision is not just of a socialist America but of a socialist world.

The Investor’s Business Daily comments on how a small, failing, Chicago bank that – inter alia – redistributes US tax-payers’ money to Kenya (the homeland of Obama’s father) is kept going by effort of the redistributionists in the White House.

Sometimes banks are too small to fail, such as when they are in the president’s hometown, deal with the president’s friends and serve the president’s agenda. Or should we perhaps say too connected to fail?

ShoreBank’s Web site boasts: “Van Jones [Obama’s erstwhile ‘Environment Czar’ and admirer of Mao – JB] saves at ShoreBank so his money fights for green jobs just like he does.” …

While President Obama rails against the robber barons of Wall Street, the politically connected Chicago financial institution with a politically correct agenda gets a pass and gets a bailout all its own. It is the poster bank for hope and change.

Fox Business points out that “ShoreBank has ties to the Obama administration. Valerie Jarrett, President Obama’s senior adviser and a fixture in Chicago politics (as was the president), served on the board of Chicago Metropolis 2020, a civic organization which was run by Adele Simmons, a director at ShoreBank.”

ShoreBank was in trouble and needed financial help, either from the government or other financial institutions that have already received government money.

Rep. Judy Biggert, R-Ill., has joined Rep. Spencer Bachus, R-Ala., in a letter to Obama asking for records concerning ShoreBank and how it lined up at least  $125 million in capital from major banks to qualify for $75 million from the federal government.

ShoreBank has a history of making the very kind of risky loans that leftist agitators such as Acorn, with government help, pressured banks to do under the Community Reinvestment Act.

During his visit to Africa last year, Obama praised the bank for its involvement in projects in Kenya.

Kenya? Why is a struggling community bank in the Windy City involved in projects in Kenya? We hesitate to guess.

Ten other Illinois banks have already failed in 2010, according to the Federal Deposit Insurance Corp. ShoreBank has reportedly received $20 million from General Electric, $20 million from Goldman Sachs and $20 million from Citigroup — with more promised by JPMorgan Chase, Bank of America and Morgan Stanley.

Considering ShoreBank’s track record, is this where taxpayer money should be going?

Forgive us. We forgot for a moment about that whole sharing the wealth and redistribution thing. …

“I did not run for office to be helping out a bunch of fat cat bankers on Wall Street,” President Obama said in an interview on the CBS “60 Minutes” program.

He did run to fundamentally transform America — and if those banks are on Main Street and they follow Obama’s agenda, they get help from those fat cats now in thrall to the government, not to mention all the president’s friends. Pretty sweet deal.