government-funded propaganda

Your Betters Decide For You: (Not) Choosing a Tenant in Seattle

The Socialist Alternative for Seattle

The Socialist Alternative Party for Seattle


The Party of Government knows better than owners and managers how to run a business properly — look what they did for Detroit and Flint! We’ll talk about the $15 minimum wage (really outlawing jobs worth less than that) and the movement to prohibit prospective employers from asking about criminal records or checking credit ratings, but the latest brilliant idea from the socialist progressives (including the new Socialist councilwoman) in Seattle wins the prize for harmful intrusion pretending to do good: landlords must take the first tenant candidate who meets their qualifications, which must be set forth in advance. This is of course intended to prevent invidious housing discrimination in a city with a shortage of rentals and rapidly-increasing prices as Seattle goes the way of California, inhibiting new housing construction (because that only benefits greedy developers) and then blaming the business of providing housing for the shortage and high prices of same.

From the article “A primer on Seattle’s new first-come, first-served renters law,” by Daniel Beekman in the Seattle Times of August 10, 2106:

Seattle is apparently breaking new ground by requiring landlords in the city to rent their housing units to qualified applicants on a first-come, first-served basis. Officials say they’re unaware of any other U.S. city with a policy like the one the Seattle City Council approved Monday, along with other rental-housing changes.

This might be a clue that your new law might be a bad idea. Good luck with those lawsuits!

The goal is to ensure prospective renters are treated equally, according to Councilmember Lisa Herbold, who championed the policy. When landlords pick one renter among multiple qualified applicants, their own biases — conscious or unconscious — may come into play, she says.

May come into play! To prevent thoughtcrime, one must banish discretion. A similar law in employment will help even more, when jobs aren’t handed out on the whim of those who are responsible for production. Every applicant will have a place in tractor factory! The city will tackle discrimination in mating and friendship next.

Some landlords don’t mind the policy, saying they already operate on a first-come, first-served basis. But others are upset, saying they should be able to use their own judgment to choose the renters they believe will be most reliable.

The landlords who say they don’t mind may be running shithole low-end buildings with low maintenance and high turnover. And lying, since they’ve been trained to discriminate covertly by previous regimes. One of the casualties of socialist systems is truth — everyone pretends and works the system. Underground economies spring up — the best apartments go to the connected who can trade favors or outright bribes to get in, as in San Francisco’s rent-controlled units.

Even proponents of the policy acknowledge it could have unintended consequences, and some details still need to be worked out before it takes effect Jan. 1.

“There seems to be a strong common-sense argument for this,” said Leland Jones, regional spokesman for U.S. Department of Housing and Urban Development. “But we’ll have to wait and see.”

Like common-sense gun regulations, progressives label whatever micromanaging policy they want that week obvious and sensible. Those who point out the unintended consequences are just standing in the way of progress and fairness for all. Unicorns and rainbows happen when we cut up that pie our way! After all, housing is a human right. Those who own it have to give it to those who need it.

Before accepting a prospective renter’s application materials, a landlord will need to provide the renter with information on the landlord’s minimum screening criteria, Kranzler said. When the landlord receives a completed application — in person, electronically or through the mail — the landlord will be required to make note of the date and time. The landlord will be required to screen multiple applications in the order in which they were received and make offers to qualified renters in that order. A prospective renter won’t necessarily know her position in line, but she can ask SOCR [Seattle Office of Civil Rights] to investigate by checking the landlord’s records. Prospective renters will also have the option to sue a landlord when they think they’ve been skipped — an aspect of the policy that bothers landlord groups.

To aid enforcement, the next update to the law may require all landlords to maintain an open Internet connection which transmits all changes to their records directly to the SOCR.

Ann LoGerfo, a directing attorney with Columbia Legal Services who pushed for the policy, offered an example: A landlord with two qualified applicants picks a name he associates with his own ethnicity, rather than a name that sounds foreign to him. Under Seattle’s new policy, if the latter completes her application first and meets the landlord’s criteria, the landlord will be required to offer her the unit.

One Seattle landlord who likes the idea is Jason Truesdell, who rents out a duplex in Madison Valley. Truesdell says he practices first-come, first-served now. “Because my goal is to get a unit occupied as quickly as possible by someone reliable,” he said.

While that sounds quite reasonable, Jason, your ability to set those criteria for reliability is being taken away. You won’t be allowed to use credit scores, criminal histories, or reports from previous landlords to refuse a new tenant — the next generation of this ordinance will set qualifications that your political masters decide. Your pain and suffering in dealing with bad tenants and the apartments they trash and the good tenants they run off matters not at all; giving protected classes do-overs to cover up their irresponsibilities of the past is more important. Because literally nothing in their lives was ever their fault. The Man has kept them down, and you’re The Man now, Jason — we’re taking control of your property for reparations.

And Shanna Smith, president of the National Fair Housing Alliance, said the policy means Seattle is taking a leadership role. “We’ve been asking people to address this issue for years,” but landlords always push back, said Smith. “We know landlords skip people all the time, and often the people they skip are people of color, people with vouchers and families with children.”

Stupid landlords. What do they know? Shanna knows better. Section 8 people are the salt of the earth and belong in quiet buildings. They can be key in the neighborhood Party Committee that will dole out scarce food and housing to those who support the goals of the Council.

Not everyone is happy about the policy, however. Don Taylor, who rents out a small building off Aurora Avenue North, said he doesn’t need policing. “How do I do it? Part of it is just feel,” Taylor said, recalling an instance in which he chose one qualified applicant over another because her salary was lower and he guessed she’d be less likely to buy a home and move out. “The longer you can keep a tenant, the better off you are,” the landlord said. “I don’t care whether you’re black, white or purple.”

I was a landlord in an area where good apartments were in great demand, and this is exactly how a smart landlord thinks. There’s little or no racism or improper discrimination involved — I chose black men and lesbians quite cheerfully when they were the most likely to pay the rent, be good neighbors to others, and take good care of the apartment. Taking away all the subtle discretionary factors that go into making these decisions amounts to harming small landlords who are doing it right.

Sean Martin, spokesman for the Rental Housing Association of Washington, says the group already advises landlords to operate on a first-come, first-served basis — to avoid discrimination claims. But he’s worried about unintended consequences. He wonders whether the race-to-apply policy will give an advantage to people with cars, smartphones and free time over people who ride the bus and work three jobs….

Then there’s the question of enforcement. Taylor says he’ll keep going with his gut. “I plan to find a way to work around the law,” he said.

False times and dates. Different screening criteria. Pre-application interviews. Those are all possibilities, said [Jason] Truesdell, who plans to adhere to the policy. “I can easily imagine how this could be gamed,” he said.

That’s why… the national expert says Seattle will need to ramp up its sting operations. According to SOCR, it will need to add two staffers to handle work related to the first-come, first-served policy — to the tune of more than $200,000 next year.

Your tax dollars at work, making housing more expensive and harder to find by discouraging new rental housing construction. Seattle is on the road to San Francisco’s impossibly expensive, two-class housing market, where only the very wealthy or connected can find comfortable and affordable apartments.


Death by HR: How Affirmative Action Cripples OrganizationsDeath by HR: How Affirmative Action Cripples Organizations

[From Death by HR: How Affirmative Action Cripples Organizations,  available now in Kindle and trade paperback.]

The first review is in: by Elmer T. Jones, author of The Employment Game. Here’s the condensed version; view the entire review here.

Corporate HR Scrambles to Halt Publication of “Death by HR”

Nobody gets a job through HR. The purpose of HR is to protect their parent organization against lawsuits for running afoul of the government’s diversity extortion bureaus. HR kills companies by blanketing industry with onerous gender and race labor compliance rules and forcing companies to hire useless HR staff to process the associated paperwork… a tour de force… carefully explains to CEOs how HR poisons their companies and what steps they may take to marginalize this threat… It is time to turn the tide against this madness, and Death by HR is an important research tool… All CEOs should read this book. If you are a mere worker drone but care about your company, you should forward an anonymous copy to him.

 


Update on Corrupt Feedback Loops: Justice Dept. Extortion

ACORN Activists

ACORN Activists

Earlier work by Kim Strassel, Overlawyered, and my own post (Corrupt Feedback Loops: Justice Dept. Extortion) looked at how the Justice Department extorted donations to groups favoring the Democratic Party and left-wing activism, effectively diverting to political supporters money that should have been returned to the supposed victims of mortgage banks.

The Volokh Conspiracy blog at WaPo has an entry by Nicholas Quinn Rosenkranz today about his testimony on a new bill to block this corrupt practice:

The Justice Department has celebrated its settlements with major banks for their conduct leading up to the subprime mortgage crisis… Investor’s Business Daily has characterized these payments as “political payoffs to Obama constituency groups,” and Congress is now considering banning this practice with the Stop Settlement Slush Funds Act of 2016.

In addition to the obvious potential for cronyism and corruption, this practice also implicates a constitutional question. The Constitution provides: “No money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” If the banks had paid this money to the United States — which is, after all, the plaintiff in these cases — then the money would have gone into the Treasury. And if, subsequently, the president or the attorney general favored using this money to subsidize these “community development” organizations, they would have had to request an appropriation from Congress; doling out such money “without an appropriation… violates the Constitution,” as the president was reminded just last week. By providing for payments directly from the banks to the organizations, these settlement provisions circumvent the Appropriations Clause and cut Congress out of the loop.

On Thursday, I testified before the Oversight and Investigations Subcommittee of the House Financial Services Committee on this issue, and I supported legislation along the lines of the Stop Settlement Slush Funds Act of 2016. My written statement is available here…. Video of the hearing and all written statements are available here.

There’s more in the Daily Caller’s story, “Feds Divert MILLIONS To ‘Slush Fund’ That Fuels These Liberal Activist Groups” by Richard Pollock:

Rep. Sean Duffy, a Wisconsin Republican and chairman of the House Financial Services oversight and investigations subcommittee, said Friday the officials “skimmed” off three percent from mortgage-related bank settlements. This created what he called a $500 million “slush fund” that could be steered toward favored groups.

“The first objective of a settlement is to make sure that we have victims who are made whole,” Duffy said, referring to millions of Americans who lost their homes during the meltdown that led to the Great Recession of 2009. “If you’re diverting money away from victims and sending it to third-party activist groups, you have victims who are being harmed not just once, but a second time.”

Justice officials were long able to “skim 3 percent of any settlement money into their own account to for the most part spend it the way they see fit,” Duffy told participants in the media briefing hosted by the Cause of Action Institute, a nonprofit legal watchdog group.

Stay tuned. Recognizing how public money is diverted to to fund armies of activists to tear down our established institutions is only the start of reform; digging through every agency to root out employees and funds used to “educate” and mold the voters to support the administrative state will be a long and difficult struggle.


More reading on other topics:

Jane Jacobs’ Monstrous Hybrids: Guardians vs Commerce
The Great Progressive Stagnation vs. Dynamism
Death by HR: How Affirmative Action is Crippling America
Death by HR: The End of Merit in Civil Service
Corrupt Feedback Loops: Public Employee Unions
Death by HR: History and Practice of Affirmative Action and the EEOC
Civil Service: Woodrow Wilson’s Progressive Dream
Bootleggers and Baptists
Corrupt Feedback Loops: Justice Dept. Extortion
Corrupt Feedback Loops, Goldman Sachs: More Justice Dept. Extortion
Death by HR: The Birth and Evolution of the HR Department
Death by HR: The Simple Model of Project Labor
Levellers and Redistributionists: The Feudal Underpinnings of Socialism
Sons of Liberty vs. National Front
Trump World: Looking Backward
Minimum Wage: The Parable of the Ladder
Selective Outrage
Culture Wars: Co-Existence Through Limited Government
Social Justice Warriors, Jihadists, and Neo-Nazis: Constructed Identities
Tuitions Inflated, Product Degraded, Student Debts Unsustainable
The Morality of Glamour

On Affirmative Action and Social Policy:

Affirmative Action: Chinese, Indian-Origin Citizens in Malaysia Oppressed
Affirmative Action: Caste Reservation in India
Diversity Hires: Pressure on High Tech<a
Title IX Totalitarianism is Gender-Neutral
Public Schools in Poor Districts: For Control Not Education
Real-Life “Hunger Games”: Soft Oppression Destroys the Poor
The Social Decay of Black Neighborhoods (And Yours!)
Child Welfare Ideas: Every Child Gets a Government Guardian!
“Income Inequality” Propaganda is Just Disguised Materialism

The greatest hits from SubstrateWars.com (Science Fiction topics):

Fear is the Mindkiller
Mirror Neurons and Irene Gallo
YA Dystopias vs Heinlein et al: Social Justice Warriors Strike Again
Selective Outrage
Sons of Liberty vs. National Front
“Tomorrowland”: Tragic Misfire
The Death of “Wired”: Hugo Awards Edition
Hugos, Sad Puppies 3, and Direct Knowledge
Selective Outrage and Angry Tribes
Men of Honor vs Victim Culture
SFF, Hugos, Curating the Best
“Why Aren’t There More Women Futurists?”
Science Fiction Fandom and SJW warfare

More reading on the military:

US Military: From No Standing Armies to Permanent Global Power
US Military: The Desegration Experience
The VA Scandals: Death by Bureaucracy

Corrupt Feedback Loops, Goldman Sachs: More Justice Dept. Extortion

Goldman Sachs - NY Daily News

Goldman Sachs – NY Daily News

The failure to prosecute or fine individuals responsible for the mortgage meltdown continues, but today another settlement was announced, this time with Goldman Sachs. As usual, the fine sounds large, but none of it goes to the injured consumers, and much of it may well be funneled through politically connected organizations which support the Administration. Here’s the story from The Hill:

Goldman Sachs announced Thursday that it would pay roughly $5 billion to settle a government probe.

The investment giant said the deal, if finalized, would resolve potential civil charges sought by a government task force exploring the creation and sale of securities backed by residential mortgages, an investment type central to the 2007 financial crisis. Authorities involved in the probe included the Justice Department, the states of New York and Illinois, and other regulators.

“We are pleased to have reached an agreement in principle to resolve these matters,” said Lloyd Blankfein, the bank’s chairman and CEO.
Goldman said the settlement would cut into $1.5 billion of its fourth-quarter profits. The deal would also include a $2.4 billion monetary penalty, another $875 million in cash payments and $1.8 billion in consumer relief.

That consumer relief would come in variety of ways, ranging from principal forgiveness for underwater homeowners to the financing of construction or rehabilitation for affordable housing.

The agreement still needs to be finalized, but if it is, it would be the latest in a series of eye-popping settlements between the government and big banks. For example, in 2013, JPMorgan Chase announced a $13 billion deal to settle charges around its residential mortgage-backed securities activity.

An evaluation from Better Markets:

This settlement is a victory for Goldman. First, it got to keep all the ill-gotten gains for the last eight-plus years. Second, a $5 billion settlement is meaningless unless it is publicly disclosed how much money was made from the illegal conduct and the total amount of investor losses. Third, DOJ helped it cover up its illegal actions by letting Goldman merely acknowledge a Swiss cheese ‘statement of facts’ carefully crafted more to conceal than reveal what Goldman really did here. Fourth, Goldman’s net revenue was $37.7 billion and its net earnings were $9.5 billion in 2006 alone, just one year in the midst of this multi-year scheme. Fifth, every single individual at Goldman who received a bonus from this illegal conduct not only keeps the entire bonus, but suffers no penalty at all. Sixth, more than half of the $5 billion appears likely to be tax deductible, meaning U.S. taxpayers will be required to subsidize this settlement.

We went into this kind of corruption-by-settlement in the post “Corrupt Feedback Loops: Justice Dept. Extortion” a few weeks back. Legislation should prohibit diversion of funds from fines and settlements to any organization but the Treasury general fund and direct payments to victims, where it is practical to identify them.


More reading on other topics:

Jane Jacobs’ Monstrous Hybrids: Guardians vs Commerce
The Great Progressive Stagnation vs. Dynamism
Death by HR: How Affirmative Action is Crippling America
Death by HR: The End of Merit in Civil Service
Corrupt Feedback Loops: Public Employee Unions
Death by HR: History and Practice of Affirmative Action and the EEOC
Civil Service: Woodrow Wilson’s Progressive Dream
Bootleggers and Baptists
Corrupt Feedback Loops: Justice Dept. Extortion
Corrupt Feedback Loops, Goldman Sachs: More Justice Dept. Extortion
Death by HR: The Birth and Evolution of the HR Department
Death by HR: The Simple Model of Project Labor
Levellers and Redistributionists: The Feudal Underpinnings of Socialism
Sons of Liberty vs. National Front
Trump World: Looking Backward
Minimum Wage: The Parable of the Ladder
Selective Outrage
Culture Wars: Co-Existence Through Limited Government
Social Justice Warriors, Jihadists, and Neo-Nazis: Constructed Identities
Tuitions Inflated, Product Degraded, Student Debts Unsustainable
The Morality of Glamour

On Affirmative Action and Social Policy:

Affirmative Action: Chinese, Indian-Origin Citizens in Malaysia Oppressed
Affirmative Action: Caste Reservation in India
Diversity Hires: Pressure on High Tech<a
Title IX Totalitarianism is Gender-Neutral
Public Schools in Poor Districts: For Control Not Education
Real-Life “Hunger Games”: Soft Oppression Destroys the Poor
The Social Decay of Black Neighborhoods (And Yours!)
Child Welfare Ideas: Every Child Gets a Government Guardian!
“Income Inequality” Propaganda is Just Disguised Materialism

The greatest hits from SubstrateWars.com (Science Fiction topics):

Fear is the Mindkiller
Mirror Neurons and Irene Gallo
YA Dystopias vs Heinlein et al: Social Justice Warriors Strike Again
Selective Outrage
Sons of Liberty vs. National Front
“Tomorrowland”: Tragic Misfire
The Death of “Wired”: Hugo Awards Edition
Hugos, Sad Puppies 3, and Direct Knowledge
Selective Outrage and Angry Tribes
Men of Honor vs Victim Culture
SFF, Hugos, Curating the Best
“Why Aren’t There More Women Futurists?”
Science Fiction Fandom and SJW warfare

More reading on the military:

US Military: From No Standing Armies to Permanent Global Power
US Military: The Desegration Experience
The VA Scandals: Death by Bureaucracy

Corrupt Feedback Loops: Justice Dept. Extortion

Attorneys General Holder and Lynch

Attorneys General Holder and Lynch

[Welcome Instapundit readers! Sign up on the sidebar or add the RSS feed if you want updates…]

We’re all familiar with the evil of bribery, in which someone pays a civil servant for favorable handling of a government decision. The briber gains profits that are some multiple of the bribe at the expense of the public; the bribed official’s malfeasance betrays the people who pay his salary.

Since the Code of Hammurabi, government officials have been punished for taking bribes or dealing in property related to their official decisions. In The Republic, Plato suggested government officials live communally without the temptations of private property to insulate their decisions from the temptations of personal gain. In Systems of Survival, Jane Jacobs wrote about systemic corruption when what she called the Guardian Syndrome (appropriate memes for governing and military classes) was corrupted by Commercial Syndrome considerations — and vice-versa. It is corruption if commercial actors use bribes to gain special favors at the expense of competitors and the public, and it is also corruption if government officials use their decisionmaking and spending power to influence private business or voters to give them an advantage over political opponents. Both forms of corruption break down accountability and result in a net loss in fairness and efficiency, leading to less dynamic public and private spheres. And the endpoint of such corruption in a country is stagnation, weakness, and defeat by an external enemy.

Outright bribery is common in developing countries, as the US was before the turn of the century. A less direct form of bribe which is harder to detect is campaign contributions for access and favorable handling, still quite common and legal in the US. The influence is not so much a direct payment for a favorable decision as a tendency to favor the interests of the campaign contributor, putting a thumb on the scales weighing the public interest. The modern version has an officeholder accepting a large number of contributions from both sides of various issues, especially when the officeholder is not a predictable supporter of either side. This bundling of interest-group contributions leaves out citizens who have no trade group or industry representing their interests. This is not ideal, but the commonly-suggested remedy of public campaign financing has the obvious problem of favoring the status quo and whoever decides which candidates deserve public funding. Individual wealthy contributors have provided the seed money for many outsider campaigns for public office, and if private contributions are limited, status quo politicians, with their free access to news media, are much harder to displace.

Another more subtle form of corruption is advertising and PR monies spent by the state at the direction of current officeholders for supposedly public purposes, but which greatly favor their own party or policies. A great recent example of this is the advertising for Obamacare and its insurance exchanges, and the “Navigators” hired to assist applicants in using the unusable Healthcare.gov web site. From the Kaiser survey, “More than 4,400 Assister Programs, employing more than 28,000 full-time-equivalent staff and volunteers, helped an estimated 10.6 million people during the first Open Enrollment period.” Doing the math, this means each navigator served about two people a day, and (especially at first) most of the time spent went to staring at nonfunctional screens and talking about the problems with the system. Navigators were hired with little concern for knowledge or trustworthiness, and information about becoming a navigator was spread via the network of “community activist” organizations that happened to reach out to the same sort of people who serve as political foot soldiers for Democratic campaigns. ACA implementation spent billions of dollars on politically-connected contractors for failed systems and hiring of connected patronage employees. The result was enormous waste and failure of the new systems, but with the politically-desirable side-effect of direct government-funded contact between poor citizens and activists for Democratic causes. This may have backfired since the program failed so obviously, but was motivated by the desire to give poor people a benefit while reminding them personally of the party that got it for them.

Because spending for Federal PR offices and advertising is buried as multiple items in each agency’s budget, it is hard to track. The GAO is launching an investigation to try to trace it, with obvious external advertising contracts adding up to $4.7 billion in 2009-2013 fiscal years:

The 2014 CRS report found it difficult to determine details on federal agencies’ advertising spending. There is no governmentwide reporting standard, CRS said, nor is there a common definition of what constitutes advertising. Additionally, agencies have “great discretion” to budget their in-house PR. Agencies are prohibited from spending money on “publicity or propaganda” not specifically authorized by Congress, but CRS found the lack of a firm definition of advertising has led to “few governmentwide restrictions” on the practice.

Government-funded PR offices send out press releases which end up as stories in the media, which typically don’t question the content — a “government source” is seen as credible. This allows slanted views of science, economics, and political issues to be presented as neutral fact with apparent consensus support — a typical press release from a government agency can result in dozens or hundreds of stories repeating the same information, and most media outlets won’t seek out any opposing viewpoints.

This means the party holding the executive branch can try to mold the views of the citizenry using propaganda funded by the citizens’ own tax money. When the executive branch is held by progressives who reinforce the generally government-favoring slant of the federal civil service employees, the depth of the disinformation provided increases. This is systemic corruption, and creates a powerful positive feedback loop toward larger government and shrinking private freedoms. Progressive politicians believe this is all to the good — because they know what is best for everyone and most citizens choose wrongly unless guided by the state and its social-working employees, it is totally legitimate for the state to enlighten its voters by programming their malleable minds with the correct ideas so that they will vote for the correct politicians, who happen to be them.

Overlawyered reports on a WSJ story (behind a paywall, unfortunately) discussing the fate of the $110 billion in fines paid by mortgage banks to settle with the Justice Dept.:

Following the 2008 crash, government enforcement action extracted $110 billion from lenders and other players over a variety of alleged sins relating to the rise and collapse of the mortgage bubble. Where did it go? Governments held on to a lot of it, a lot went to the government-sponsored Fannie and Freddie mortgage enterprises, favored “housing-related community groups” got some, some went to homeowners with mortgage struggles or to new low-interest loans. In New York, money is going to rebuild the Tappan Zee bridge and “the annual state fair is using bank-settlement money to build a new horse barn and stables.” But no one has kept track of where a lot of the money went, there being no overall effort to account for it.

Kimberly Strassel in the WSJ of 12/3/2015 commented on the phenomenon of fines extracted by Justice Dept. threats going to groups supporting the Democratic party:

Republicans talk often about using the “power of the purse” to rein in a lawless Obama administration. If they mean it, they ought to use their year-end spending bill to stop a textbook case of outrageous executive overreach.

This scandal comes courtesy of the Justice Department, which for 16 months has engaged in a scheme to undermine Congress’s spending authority by independently transferring dollars to President Obama’s political allies. The department is in the process of funneling more than half-a-billion dollars to liberal activist groups, at least some of which will actively support Democrats in the coming election.

It works likes this: The Justice Department prosecutes cases against supposed corporate bad actors. Those companies agree to settlements that include financial penalties. Then Justice mandates that at least some of that penalty money be paid in the form of “donations” to nonprofits that supposedly aid consumers and bolster neighborhoods.

The Justice Department maintains a list of government-approved nonprofit beneficiaries. And surprise, surprise: Many of them are liberal activist groups. The National Council of La Raza. The National Urban League. The National Community Reinvestment Coalition. NeighborWorks America (which awards grants to left-leaning community organization groups, and has been compared with Acorn).

This strategy kicked off with the $13 billion J.P. Morgan settlement in late 2013, though in that case the bank was simply offered credit for donations to nonprofits. That changed with the Citigroup and Bank of America settlements, which outright required $150 million in donations. The BofA agreement contains a provision that potentially tees up nonprofit groups for another $490 million. Several smaller settlements follow the same mold.

To further induce companies to go the donation route, Justice considers these handouts to be worth “double credit” against penalty obligations. So while direct forms of victim relief are still counted dollar-for-dollar, a $500,000 donation by BofA to La Raza takes at least $1 million off the company’s bill.

The purpose of financial penalties is to punish, and to provide restitution to real victims. The Justice Department would make the case that this money is flowing to groups that aid the targets of supposed banking abuse, such as homeowners. But that assumes the work these groups do is targeted at actual victims—which it isn’t. It assumes that the work these groups do in housing is nonpartisan—which it isn’t. And it ignores that money is fungible. Every dollar banks donate to the housing arms of the Urban League or La Raza is a dollar those groups can free up to wage an assault on voter ID laws, or to help out Democrats.

This kind of enforced donation to “public service” organizations that just happen to support the ruling party’s goals is correctly discouraged by Justice Dept. guidelines as possibly creating the perception of a conflict of interest. Not only does this improperly divert money which should have been returned to the customers of the banks, it appears to encourage the Justice Dept. to spend effort on industry-wide feints at prosecution of private companies regardless of actual guilt who are thereby extorted into paying huge fines. The businesses find it cheaper to pay the extortion money, and actual justice in the form of discovery and public knowledge of any provable violations of the law that may have occurred is never achieved. The public interest was not served and there is no accountability for any of the bad actors: those inside the banks, in the ratings agencies, or in the government regulatory agencies themselves. Unresolved, there is no clarity on what reforms might help avoid recurrence. And the President builds a bigger propaganda machine to mislead the voters and retain power for his party.

Tl;dr version: The banks were rescued (whether they needed it or not) and then propped up to earn big profits by Fed actions loaning them money at close to zero rates. The DoJ takes a cut from the banks and distributes the booty to favored groups and everyone goes back to business as usual. No banker suffers. My view is that the failures were systemic and no criminal activity could ever be found… the proper punishment should have been some bankruptcies. But that route had “insufficient opportunities for graft.”


More reading on other topics:

Jane Jacobs’ Monstrous Hybrids: Guardians vs Commerce
The Great Progressive Stagnation vs. Dynamism
Death by HR: How Affirmative Action is Crippling America
Death by HR: The End of Merit in Civil Service
Corrupt Feedback Loops: Public Employee Unions
Death by HR: History and Practice of Affirmative Action and the EEOC
Civil Service: Woodrow Wilson’s Progressive Dream
Bootleggers and Baptists
Corrupt Feedback Loops: Justice Dept. Extortion
Corrupt Feedback Loops, Goldman Sachs: More Justice Dept. Extortion
Death by HR: The Birth and Evolution of the HR Department
Death by HR: The Simple Model of Project Labor
Levellers and Redistributionists: The Feudal Underpinnings of Socialism
Sons of Liberty vs. National Front
Trump World: Looking Backward
Minimum Wage: The Parable of the Ladder
Selective Outrage
Culture Wars: Co-Existence Through Limited Government
Social Justice Warriors, Jihadists, and Neo-Nazis: Constructed Identities
Tuitions Inflated, Product Degraded, Student Debts Unsustainable
The Morality of Glamour

On Affirmative Action and Social Policy:

Affirmative Action: Chinese, Indian-Origin Citizens in Malaysia Oppressed
Affirmative Action: Caste Reservation in India
Diversity Hires: Pressure on High Tech<a
Title IX Totalitarianism is Gender-Neutral
Public Schools in Poor Districts: For Control Not Education
Real-Life “Hunger Games”: Soft Oppression Destroys the Poor
The Social Decay of Black Neighborhoods (And Yours!)
Child Welfare Ideas: Every Child Gets a Government Guardian!
“Income Inequality” Propaganda is Just Disguised Materialism

The greatest hits from SubstrateWars.com (Science Fiction topics):

Fear is the Mindkiller
Mirror Neurons and Irene Gallo
YA Dystopias vs Heinlein et al: Social Justice Warriors Strike Again
Selective Outrage
Sons of Liberty vs. National Front
“Tomorrowland”: Tragic Misfire
The Death of “Wired”: Hugo Awards Edition
Hugos, Sad Puppies 3, and Direct Knowledge
Selective Outrage and Angry Tribes
Men of Honor vs Victim Culture
SFF, Hugos, Curating the Best
“Why Aren’t There More Women Futurists?”
Science Fiction Fandom and SJW warfare

More reading on the military:

US Military: From No Standing Armies to Permanent Global Power
US Military: The Desegration Experience
The VA Scandals: Death by Bureaucracy