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"Justice's New War Against Lenders"



The Wall Street Journal op-ed on the DOJ Civil Rights Division's counterproductive litigation against banks for disparate-impact lending discrimination is no surprise to Point of Law readers of our July 13 and May 19 posts:

All of this may boost the standing of Messrs. Perez and Halperin in the Obama administration. It's less good for the rest of us. These settlements include requirements that banks lend to minorities at below-market rates and, in effect, dish out cash to politically favored "community groups." It's a good bet that many of these loans will eventually go bad.

The Justice Department--or the bank, with the long arm of Justice hanging over it--chooses where that money goes. A Michigan judge even went so far as to call one proposed settlement "extortion." He might be onto something.

See also Bader @ CEI.

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Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.