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Things that should be bigger scandals department

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For all the complaints about the politicization of the Bush Department of Justice, what the Obama Department of Justice is doing is simply unprecedented. Take the case of the City of St. Paul. St. Paul was ready to challenge the DOJ's thoroughly bogus disparate-impact theory of fair lending in the Supreme Court, where it was surely doomed. DOJ pulled out all the stops, engaging in a quid pro quo of agreeing to drop an unrelated False Claims Act case against the city worth perhaps as much as $186 million—over the recommendation of career prosecutors—if the City would drop its Supreme Court case. [Congressional letter; American Banker; WSJ]

Aside from the bad public policy and questionable legal theories, there are many many unseemly things about the DOJ's fair lending program that really bear further investigation.

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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

 

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