For preachers and some civil rights organizations, including the NAACP and the National Urban League, no money is tainted. For them, the only thing wrong with contributions from pariah corporations is that there t'aint enough.
But enough is enough.
Today, the Justice Department announced a $25 billion agreement with the five largest mortgage servicers: Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial (formerly GMAC). Attorney General Eric Holder said:
This agreement – the largest joint federal-state settlement ever obtained – is the result of unprecedented coordination among enforcement agencies throughout the government. It holds mortgage servicers accountable for abusive practices and requires them to commit more than $20 billion towards financial relief for consumers. As a result, struggling homeowners throughout the country will benefit from reduced principals and refinancing of their loans. The agreement also requires substantial changes in how servicers do business, which will help to ensure the abuses of the past are not repeated.
Iowa Attorney General Tom Miller added:
This monitored agreement holds the banks accountable, it provides badly needed relief to homeowners, and it transforms the mortgage servicing industry so now homeowners will be protected and treated fairly.
In his remarks on the landmark housing settlement, President Obama said:
By now, it’s well known that millions of Americans who did the right thing and the responsible thing – shopped for a house, secured a mortgage that they could afford, made their payments on time – were, nevertheless, hurt badly by the irresponsible actions of others: by lenders who sold loans to people who couldn’t afford them; by buyers who knew they couldn’t afford them; by speculators who were looking to make a quick buck; by banks that took risky mortgages, packaged them up, and traded them off for large profits.
The NAACP and the National Urban League trade their credibility, such as it is, for sponsorship by banks that engaged in discriminatory and fraudulent lending practices. Pariah corporations have long sponsored civil rights organizations to buy their silence.
It's up to the rest of us to make some noise. Hey, Ben Jealous, how's your “partnership” with Wells Fargo working out?
