GOP: Banks pressured to donate to liberal groups

House Republicans are accusing the Obama administration of pressuring big banks to give money to progressive “pet projects” in settlement agreements over the 2008 financial collapse.

Justice Department officials reached multibillion-dollar settlements with JPMorgan Chase, Bank of America and Citibank between November 2013 and August 2014 for the banks’ roles in the lead-up to the financial crisis.

{mosads}As part of the settlement terms, DOJ officials required the banks to donate millions of dollars to housing and activist groups, which Republicans say have gone unfairly to left-leaning groups like the National Council of La Raza.

During a hearing Thursday, Rep. Tom Marino (R-Pa.), who chairs the House Judiciary subcommittee on Regulatory Reform, questioned Justice Department deputy associate attorney general Geoffrey Graber about the settlement terms.

“It is a cruel irony that those who have lost the most to the foreclosure crisis seem to be helped the least from DOJ’s settlements,” Marino said. “Instead, that cash is going to activist groups, because they work with victims of the housing crisis.”

“I want to know why DOJ did not do more to ensure that states receiving settlement money put victims before pet projects,” Marino told Graber.

The DOJ official vehemently denied the allegations. Graber maintained that officials had no control over how bank officials carried out the terms of their settlement agreements.

“It is up to the banks to choose exactly how they fulfill their obligations,” Graber testified. “I’m not aware of anyone at the White House involved in these settlements.”

He said that if there was any White House official involvement, it would be contrary to DOJ guidelines.

Marino said that the administration “does believe in trickle-down economics so long as the money is trickling through activist groups.”

“There are indications that the DOJ is just picking and choosing … [and that] someone at the highest levels is picking and choosing who should get this money,” he charged.

Between November 2013 and August 2014, Department of Justice officials reached settlements worth $13 billion with JPMorgan Chase; $7 billion with Citibank; and $16.65 billion with Bank of America, according to Graber’s testimony.