Banks Fight Back Vs. Holder's Race-Bias 'Witch Hunt'

Discussion in 'Economy' started by expat_panama, Aug 17, 2012.

  1. expat_panama
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    expat_panama Gold Member

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    For the past three years, the Justice Department has filed a series of bruising lawsuits against U.S. lenders for race discrimination while hiding behind opaque investigative methods and hoping banks don't challenge the cases in court. But while most banks have quietly settled the record number of lending-bias claims, some are fighting back against what they call a never-ending "witch hunt."

    In interviews with IBD, bankers and their lawyers complain that Attorney General Eric Holder and his army of civil-rights prosecutors have built their cases around dubious statistical models instead of complaints from actual victims of discrimination.

    The DOJ filed at least 55 race-bias claims vs. lenders in 2009-11, up from just 30 in the prior eight years. Bank executives say the government's econometric models, which crunch reams of public loan data, don't dig down into race-neutral factors. If prosecutors did, bankers say, they would see that differences in credit risk explain racial differences in lending and pricing, and that any "disparities" reflect prudent business decisions.

    They point out, moreover, that most of Holder's racism charges are based on "disparate impact."

    The legal theory reduces the standard of proof to mere speculation of intent to discriminate. Basically, all prosecutors have to show is that lending decisions adversely impact minorities in a "statistically significant" way.

    The Supreme Court could reject or restrict "disparate impact" in lending if justices ever hear such a case. Holder apparently agrees.
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  2. expat_panama
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    expat_panama Gold Member

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    Judging by the surge in cases from 30/8yrs to 55 in just three, my thought is that rather than being a 'witch hunt', maybe what we've had here is an all out attack.
     
  3. iamwhatiseem
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    iamwhatiseem Gold Member

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    Same for the education system.
    Universities, especially smaller community colleges, hand out degrees to students who flat out skip classes, don't do their homework and make a mess in their dorms. Why do they give them degrees anyway? Because they know damn good and well if they have a high minority failure rate - this will attract a lot of negative attention right-quick. Including losing government grants and federally paid student tuition.
     
  4. expat_panama
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    expat_panama Gold Member

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    The 'hope' that was supposed to 'change' was for a 'post racial' society, and what we got instead has been a doubling down on race conflict. We thought it was over and now the obsession is worse than ever.
     
  5. iamwhatiseem
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    iamwhatiseem Gold Member

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    Unfortunately, yes, we have taken at least a 20 year step backward.
    Instead of a post racial society, we are being dragged into a "racial preference society" - brought on by liberal guilt and "pay back time" attitudes of minority officials.
    A new twist on the old "good ole' boy" policies of pre-1960 America.
     

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