ACORN Wannabes May Get $4 Billion
By Matthew Vadum
Radical in-your-face pressure groups that are part of President Obama’s political machine may soon reap a $4 billion windfall thanks to a huge cash settlement the administration extracted from lending giant JPMorgan.
The settlement, which weighs in at a total of $13 billion, was unveiled last week by the Justice Department. In it JPMorgan acknowledged what DoJ called “serious misrepresentations to the public” about the mortgage securities transactions.
The $4 billion is supposed to be used to provide relief to underwater homeowners and potential homebuyers.
But there’s a catch.
According to the Department of Justice, if JPMorgan fails to shell out the $4 billion by Dec. 31, 2017, it will be required “to pay liquidated damages in the amount of the shortfall to NeighborWorks America, a non-profit organization and leader in providing affordable housing and facilitating community development.”
Why is the bank coughing up the dough?
“JPMorgan employees knew that the loans in question did not comply with those guidelines and were not otherwise appropriate for securitization, but they allowed the loans to be securitized – and those securities to be sold – without disclosing this information to investors,” the DoJ said. “This conduct, along with similar conduct by other banks that bundled toxic loans into securities and misled investors who purchased those securities, contributed to the financial crisis.”
It’s hogwash, of course.
What this all really means is that the bank stands accused of fraud — but that very accusation in itself is a fraud. JPMorgan did what liberal Democrats and some misguided Republicans told it to do.
The whole thing is an example of crass, vicious Marxist scapegoating, a class-warfare scam concocted to distract from the decisive role that boneheaded, destructive left-wing policies pushed by Barack Obama, former Rep. Barney Frank (D-Mass.), former Housing and Urban Development Secretary Andrew Cuomo and their fellow Democrats played in plunging mortgage markets into chaos.
And NeighborWorks, the potential vehicle to distribute the $4 billion, is a government-funded housing organization that is politically aligned with the worst of the left-wing activist groups. These groups already get millions of taxpayer dollars from NeighborWorks which in recent decades has become a major funder of radical, often taxpayer-supported, activism.

