Obama Sued Citibank Under CRA to Force it to Make Bad Loans

Posted on 03 October 2008

Do you­ rememb­er how­ w­e tol­d you­ that the Democrats an­­d g­rou­ps associated w­ith them l­ean­­ed on­­ b­an­­ks an­­d even­­ su­ed to g­et them to make b­ad l­oan­­s u­n­­der the Commu­n­­ity Rein­­vestmen­­t Act w­hich w­as a f­actor in­­ cau­sin­­g­ the econ­­omic crisis (see HERE an­d­ HE­RE­ ) … w­ell lo­o­k at w­hat s­o­me f­ello­w­ b­lo­g­g­ers­ have dug­ up­ w­hile res­earchin­g­ O­b­ama’s­ leg­al career. Lo­o­ks­ like a typ­ical ACO­RN­ law­s­uit to­ g­et b­an­ks­ to­ han­d o­ut b­ad lo­an­s­.

In­ thes­e law­s­uits­, ACO­RN­ makes­ a b­o­g­us­ claim o­f­ Redlin­in­g­ (den­yin­g­ p­o­o­r p­eo­p­le lo­an­s­ b­ecaus­e o­f­ their ethn­ic heritag­e). They p­ro­tes­t an­d g­et the lo­cal media to­ rais­e a b­ig­ s­tin­k. This­ s­tin­k mean­s­ that the b­an­k f­aces­ tho­us­an­ds­ o­f­ p­eo­p­le clo­s­in­g­ their acco­un­ts­ an­d g­et lo­cal p­o­litician­s­ to­ lo­b­b­y to­ s­to­p­ the b­an­k f­ro­m do­in­g­ s­o­me f­uture b­us­in­es­s­, exp­an­s­io­n­s­ an­d merg­ers­. If­ the b­an­k g­o­es­ to­ co­urt, they w­ill w­in­, b­ut the damag­e is­ already do­n­e b­ecaus­e w­ho­ is­ g­o­in­g­ to­ laun­ch a b­ig­ camp­aig­n­ to­ g­et the b­an­k’s­ rep­utatio­n­ b­ack?

It is­ imp­o­rtan­t to­ un­ders­tan­d the n­ature o­f­ thes­e law­s­uits­ an­d w­hat their p­urp­o­s­e is­. ACO­RN­ f­iled to­n­s­ o­f­ thes­e law­s­uits­ an­d ALL o­f­ them alleg­e racis­m.

C­as­e­ Nam­­e­
Bu­yc­k­s-Ro­berso­n­ v. C­i­ti­ban­k­ F­ed. Sav. Ban­k­ F­ai­r Ho­u­si­n­g/Len­di­n­g/I­n­su­ran­c­e
Do­c­k­et / C­o­u­rt 94 C­ 4094 ( N­.D. I­ll. ) F­H-I­L-0011
State/Terri­to­ry I­lli­n­o­i­s
C­ase­ Su­mmar­y
Pla­i­nt­i­ffs fi­led­ t­hei­r­ cla­ss a­ct­i­o­n la­w­sui­t­ o­n July­ 6, 1994, a­llegi­ng t­ha­t­ Ci­t­i­ba­nk­ ha­d­ enga­ged­ i­n r­ed­li­ni­ng pr­a­ct­i­ces i­n t­he Chi­ca­go­ m­et­r­o­po­li­t­a­n a­r­ea­ i­n vi­o­la­t­i­o­n o­f t­he Equa­l Cr­ed­i­t­ O­ppo­r­t­uni­t­y­ A­ct­ (ECO­A­), 15 U.S.C. 1691; t­he Fa­i­r­ Ho­usi­ng A­ct­, 42 U.S.C. 3601-3619; t­he T­hi­r­t­eent­h A­m­end­m­ent­ t­o­ t­he U.S. Co­nst­i­t­ut­i­o­n; a­nd­ 42 U.S.C. 1981, 1982. Pla­i­nt­i­ffs a­lleged­ t­ha­t­ t­he D­efend­a­nt­-ba­nk­ r­eject­ed­ lo­a­n a­ppli­ca­t­i­o­ns o­f m­i­no­r­i­t­y­ a­ppli­ca­nt­s w­hi­le a­ppr­o­vi­ng lo­a­n a­ppli­ca­t­i­o­ns fi­led­ by­ w­hi­t­e a­ppli­ca­nt­s w­i­t­h si­m­i­la­r­ fi­na­nci­a­l cha­r­a­ct­er­i­st­i­cs a­nd­ cr­ed­i­t­ hi­st­o­r­i­es. Pla­i­nt­i­ffs so­ught­ i­njunct­i­ve r­eli­ef, a­ct­ua­l d­a­m­a­ges, a­nd­ puni­t­i­ve d­a­m­a­ges.

U.S. D­i­st­r­i­ct­ Co­ur­t­ Jud­ge R­uben Ca­st­i­llo­ cer­t­i­fi­ed­ t­he Pla­i­nt­i­ffs’ sui­t­ a­s a­ cla­ss a­ct­i­o­n o­n June 30, 1995. Buy­ck­s-R­o­ber­so­n v. Ci­t­i­ba­nk­ Fed­. Sa­v. Ba­nk­, 162 F.R­.D­. 322 (N.D­. I­ll. 1995). A­lso­ o­n June 30, Jud­ge Ca­st­i­llo­ gr­a­nt­ed­ Pla­i­nt­i­ffs’ m­o­t­i­o­n t­o­ co­m­pel d­i­sco­ver­y­ o­f a­ sa­m­ple o­f D­efend­a­nt­-ba­nk­’s lo­a­n a­ppli­ca­t­i­o­n fi­les. Buy­ck­s-R­o­ber­so­n v. Ci­t­i­ba­nk­ Fed­. Sa­v. Ba­nk­, 162 F.R­.D­. 338 (N.D­. I­ll. 1995).

T­he pa­r­t­i­es vo­lunt­a­r­i­ly­ d­i­sm­i­ssed­ t­he ca­se o­n M­a­y­ 12, 1998, pur­sua­nt­ t­o­ a­ set­t­lem­ent­ a­gr­eem­ent­.
Pla­i­nt­i­ff’s La­w­y­er­s A­lexi­s, Hi­la­r­y­ I­. (I­lli­no­i­s)
FH-I­L-0011-7500 | FH-I­L-0011-7501 | FH-I­L-0011-9000
Chi­ld­er­s, M­i­cha­el A­llen (I­lli­no­i­s)
FH-I­L-0011-7500 | FH-I­L-0011-7501 | FH-I­L-0011-9000
Cla­y­t­o­n, Fa­y­ (I­lli­no­i­s)
FH-I­L-0011-7500 | FH-I­L-0011-7501 | FH-I­L-0011-9000
Cum­m­i­ngs, Jeffr­ey­ I­r­vi­ne (I­lli­no­i­s)
FH-I­L-0011-7500 | FH-I­L-0011-7501 | FH-I­L-0011-9000
Lo­ve, Sa­r­a­ No­r­r­i­s (Vi­r­gi­ni­a­)
FH-I­L-0011-9000
M­i­ner­, Jud­so­n Hi­r­sch (I­lli­no­i­s)
FH-I­L-0011-7500 | FH-I­L-0011-9000
O­b­ama, B­ar­ack H. (Il­l­in­o­is­)
FH-I­L-0011-7500 | FH-I­L-0011-7501 | FH-I­L-0011-9000
W­i­ck­ert­, Jo­hn­ Hen­ry­ (I­lli­n­o­i­s)
FH-I­L-0011-9000

quoted from mediacircus

I’m going to borrow a line from a commenter and say “looks like Obama just committed murder in front of hundreds of witnesses.” Now watch our lurking liberal fascist sympathizers deny everything. It’s what fascists do best… rewrite/ignore history. Denials in 3…2…1.

Remember that bill that was rejected by the house a few days ago? You know, the one that authorized the president to gift 700 Billion Taxpayer dollars to companies that made bad business decisions?

Well, the Senate tacked the bill rejected by the house onto a previously approved tax bill in addition to 150 Billion dollars in extra  earmarks, rushed it through the conference committee, and sent it back to the house for a vote. Well apparently the $150 Billion dollars in earmarks was all many in the house thought the bill was missing because despite nothing else in the bailout bill changing, the house passed it in a 263 to 171 vote early this afternoon!

This is compared to the vote for the same bill just a few days ago of 205 "Yeas" to 233 "Nays." Way to stand up for the Taxpayers Congress!

I am glad to see that my Congressman, John Carter, voted to reject this bill. For those not living in Carter’s district, here’s a vote tally so you can make sure that your congressman doesn’t get your vote on November 4th if he voted the wrong way on this bill.

As I have already mentioned, I have been in contact with my congressman regarding the Bailout bill just as I hope many of you have. Shortly after my Congressman voted "No" on the bill, he sent me (and likely others) the following email:

Dear Kelsey:

Thank you for taking the time to contact me regarding federal involvement in the current financial market. Your input is important to me, and I appreciate the time you took to share your thoughts. 

As you may know, H.R. 3997, the Defenders of Freedom Tax Relief Act of 2007 nicknamed the Wall Street Bailout Bill, failed to pass the House by a vote of 205 to 228.  I had serious concerns regarding this bill and was not prepared to commit $700 billion of taxpayer dollars to a plan with so many unanswered questions, as a result I voted against H.R. 3997.

Now that this plan has failed, I am ready and willing to go back to the drawing board and come up with a plan that won’t put taxpayers on the hook for another government bailout.  I also think we should see the evidence from all sides of the issue, not solely the advice from the administration.

I hope to help craft a common sense alternative to the $700 billion Bush/Paulson Bailout Plan, one that mandates Wall Street fund the recovery of the economy rather than American taxpayers. 

Again, thank you for taking the time to contact me on this important issue. Please do not hesitate to contact me in the future should you need any further assistance.

Sincerely,
John Carter
Member of Congress

Today, I am sure of only one vote I will be making on November 4th and that is the vote to Re-Elect my congressman, John Carter. Click Here for a list of the congressmen that voted for or against the bailout and please vote accordingly.

We posted this video a few days ago but I decided to repost it because it’s that important. This video contains information that the media has not and likely will not tell you.

While the democrats continue to get a free pass from the media while they ruthlessly and without facts, blame Republicans for this financial mess, reality as usual, is far different. You see my friends, Republicans saw this crisis coming years ago and were repeatedly blocked by Democrats when they tried to do something about it.

Watch:

If you’re voting this November, please incorporate what you just learned from this video into your decision. The future of our country may depend upon it.

This is from a New York Times Article written in 1999:

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan region — will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

Sarcasm: Yeah, looks like it’s “all Bush’s fault” because of “deregulation.” *cough*

And yet, do we see any indication that Democrats intend to change their welfare state mentality which pressured private banks into taking these unnecessary risks? Of course not. In fact, one of their few objections to this bailout was that it didn’t redistribute enough wealth to these same “lower income” people who took out loans that couldn’t be paid back! I think they got their wishes in the final draft.

Yet, somehow Democrats continue to trick the lemming masses into believing that they’re on our side… give me a break. Yeah… keep voting Democrat and ignoring reality and common sense, morons.

(Here’s more evidence to pretend that you didn’t see)

Ah the virtues of Liberalism: to reward bad behavior at the expense of good behavior. And somehow, this party still achieves the perception that they’re on the side of “hard working” Americans. In reality, they’re on the side of themselves, pandering to the lazy, guilt tripping the responsible, and above all else, getting elected by any and all means possible, no matter what the consequences.

Now they want to send 700 Billion dollars to the businesses that failed as a result of their arm twisting. They want to blame Republicans for the whole mess. They also want to “blame” Republicans for refusing to vote for a bill that hurts taxpayers and the survival of the fittest principles of capitalism.

November 4th, 2008 will be our chance to throw these self-serving bums out along with all of the failed CEOs. It’s only a shame that we taxpayers will be paying their congressional pensions for the rest of their lives.

Dir Sirs and Madams,

I am writing to let you know that I am not stupid. I also want you to know that the American people are not stupid. We have seen the spin you guys are trying to pass as truth about what really happened at the White House meeting yesterday.

The biggest lie I’ve seen thus far is the blaming of House GOP Congressmen “ruining” this bill which is supposed to “save” our economy. I happen to know that this is a lie and I hope most Americans do as well because it flies in the face of how the House of Representatives actually works.

The reason I know it’s a lie is because the Democrats, not the Republicans, control an overwhelming majority of the seats in the US House of Representatives. This means that if a bill which is supposedly a “fantastic idea” that will “save our economy” will get pushed through the House with or without GOP support there.

The only reason the bill is not getting passed is because Pelosi refuses to allow it on the House Floor. Democrats won’t put the bill on the floor of the house is because they know the bill is loaded with corruption and it will make our economy worse in the long run. If they can’t pass it without Republican votes, it means that the blame down the road (assuming the media wakes up by then) will be rightfully be passed to the Democrat Party.

We voters want the Democratic Leadership to know that we are paying very close attention to this issue and despite the media refusing to challenge the absurdity of your spin, we still see right through it.

Now, please adjourn congress without passing any form of this corrupt bill that is both bad for our country and bad for our economy. I hope that this is the last “Service” you people will be doing for our country as I hope you are all kicked out of office on November 4th for continuing to insult the intelligence of voters.

Have a nice day,

Kelsey Golden

In crisis, experience matters. McCain and his Congressional allies led. Tough rules on Wall Street. Stop CEO rip-offs. Protect your savings and pensions.

Obama and his liberal allies? Mum on the market crisis. Because no one knows what to do.

More taxes. No leadership. A risk your family can’t afford.

John McCain responded quickly to this mortgage crisis, saying that he will back President Bush’s plan to bailout banks, but also saying that greater regulation and oversight is needed. Banks do not need a blank check. Plus, McCain has said that there needs to be a specified limit on how much a CEO and other top management executives can receive from the federal assistance check. Barack Obama stayed silent on this issue. Obama did not outline a plan to help in this crisis, but went on to chastise President Bush and Republicans for causing it. Obama conveniently forgot his ties to former Fannie Mae executives Franklin Raines and Jim Johnson, who both had a large hand in causing this crisis.

This is not the first crisis McCain has shown his true leadership. When Russia invaded Georgia at the start of the Olympics, McCain was out in front condemning Russia and calling for the immediate withdrawal of Russian troops from Georgian territory. Before departing for his Hawaiian vacation, Obama made a statement calling for Georgia to end the violence! What? Obama inadvertently accused Georgia of starting the violence against Russia! Obama had to make another statement as soon as he landed in Hawaii to call on Russia to withdrawal from Georgia. Then, Obama went to see his typical white grandmother and boogie-board at the beach.

Hat Tip: Hot Air

From John McCain’s official website:

For Immediate Release
September 19, 2008
Contact:

Reforming Our Financial Markets — The Mortgage And Financial Institutions Trust

Today, In Wisconsin, John McCain Outlined His Plan To Reform Our Financial Markets.

To ensure that people are able to stay in their homes and safeguard the life savings of Americans by protecting our financial system and capital markets, John McCain is calling for the formation of a Mortgage and Financial Institutions Trust (MFI). The MFI will be a vital element in managing the current financial crisis.

The Purpose Of The Mortgage And Financial Institutions Trust (MFI):

The MFI Is An Early Intervention Mechanism That Will Help Financial Institutions Avoid Bankruptcy And Expensive Bailouts While Protecting Their Customers.

The MFI will minimize the use of taxpayer money by having an orderly process to address the market crisis. Working with the private sector and regulators, the MFI will help identify troubled institutions and take action to strengthen them before they become insolvent.

The MFI Will Provide Troubled Institutions With An Orderly Process To Identify Bad Loans, Provide Funding And Eventually Sell Them At A Profit.

This will get the Treasury and other financial regulators in a proactive position instead of reacting to one troubled institution after another.

The Structure Of The Mortgage And Financial Institutions Trust (MFI):

The MFI Will Be Part Of The U.S. Department Of The Treasury.

The MFI will be managed by a board of directors consisting of at least the Secretary of the Treasury, Federal Reserve Chairman, Chairman of the FDIC and two public members. The Secretary of the Treasury will be Chairman of the Board. Under the MFI process:

Troubled institutions will voluntarily come to the MFI.

The MFI will provide liquidity loans at reasonable interest rates.

The MFI will receive warrants for controlling interest in troubled institutions.

Troubled financial institutions that enter the MFI will keep operating as private companies with the help of the MFI.

The MFI will supervise the sale of loan assets at market prices and purchase them as necessary.

The MFI will eventually, and at its discretion, sell the loans to the private sector.

The MFI will have a predetermined tenure during which to dispose of the loans.

The MFI will return all profits to the U.S. Department of the Treasury and taxpayers.

Not sure if I can embrace this plan, but it’s better than what they’re doing now for sure.

In the video, Daniel Mudd (Former CEO, Fannie Mae)  says:

“we are determined to keep tearing down the barriers on the American Dream.”

While his rhetoric sounds lofty and idealistic, what he called “barriers” were actually safeguards which prevented banks and other financial institutions from lending money to large numbers of high risk borrowers. The requirements for these loans have been “color blind” for a very long time so race really had nothing to do with it. What he calls the “American Dream” in this case, is merely a handout.

The real “American Dream” is the ability to “earn” the right to do things like take out a mortgage through hard work and good credit. The “American Dream” was never something we were entitled to but instead, it was something we are all entitled to “pursue and earn.” To those willing to put forth the effort, the fulfillment of the American Dream was their reward.

It is time that we reestablish the real American Dream in this country. We can do this best by ceasing government handouts and truly letting the free market make the best choices for a capitalist system. This mortgage crisis was a symptom of the entitlement culture and crisis like it will end when individuals and corporations alike, realize once more that the American Dream is always waiting for those willing to reach higher and no achievement has or ever will be reached by anything less than hard work, dedication, and ingenuity.