Bank of America Must Pay Excess Settlement Funds To Acorn Clones

Paul Sperry
Investor’s Business Daily
1/4/2012

Bank of America (BAC) must turn over excess funds from a record $335 million discrimination fine to community organizing groups. Critics say it’s a “political backdoor” to subsidize Democrat-tied Acorn “clones.”

The unusual mandate is buried in a Justice Department filing last month detailing settlement terms with the nation’s largest bank. Prosecutors had alleged BofA’s Countrywide Financial mortgage unit discriminated against minority homebuyers in the years leading up to the financial crisis.

Funds not passed out to alleged victims after two years will be handed out to “qualified” groups unconnected to the case that provide credit and housing counseling and similar services to blacks and Hispanics in areas where the discrimination allegedly occurred…

…In 2008, BofA donated $2 million to Acorn Housing Corp. of Chicago. It also gave $500,000 to the National Community Reinvestment Coalition of Washington and $300,000 to the National Urban League of New York…

Read the complete article at Investor’s Business Daily

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