U.S. regulators have squeezed out a lot of cash from the country's largest mortgage lenders since the financial crisis, but who is receiving that money? According to some lawmakers, it is going unfairly to liberal housing and activist groups.
The Department of Justice (DOJ) has squeezed out a lot of cash from the country's largest mortgage lenders in the last few years. Since the financial crisis, the regulator has reached multibillion-dollar settlements with the likes of JPMorgan Chase, Bank of America and Citibank for the banks' roles in the lead-up to the housing bust.
So, where exactly is that settlement money going?
During a roughly two-hour long hearing last week, Republicans repeatedly suggested that the DOJ was illegally funneling money to activist groups using sham transactions embedded in legal settlements with two big banks, according to The Huffington Post.
As part of the settlement agreements over the 2008 financial crisis, the DOJ required banks to donate millions of dollars to groups that Republicans said have gone unfairly to left-leaning groups.
"It is a cruel irony that those who have lost the most to the foreclosure crisis seem to be helped the least from DOJ’s settlements," The Hill reported Rep. Tom Marino, R-Pa., saying at the hearing. "Instead, that cash is going to activist groups, because they work with victims of the housing crisis."
So, where exactly is that settlement money going?
During a roughly two-hour long hearing last week, Republicans repeatedly suggested that the DOJ was illegally funneling money to activist groups using sham transactions embedded in legal settlements with two big banks, according to The Huffington Post.
As part of the settlement agreements over the 2008 financial crisis, the DOJ required banks to donate millions of dollars to groups that Republicans said have gone unfairly to left-leaning groups.
"It is a cruel irony that those who have lost the most to the foreclosure crisis seem to be helped the least from DOJ’s settlements," The Hill reported Rep. Tom Marino, R-Pa., saying at the hearing. "Instead, that cash is going to activist groups, because they work with victims of the housing crisis."
