The Huffington Post is not happy about this as they describe in part:
The memo will hurt nonprofit groups that provide services to communities hurt by corporate wrongdoing like mortgage fraud and environmental abuses. Republicans have called out groups like La Raza, a Latino advocacy group; the Urban League, a civil rights group; and the National Community Reinvestment Coalition, which works to expand access to financial services in poor neighborhoods. Habitat for Humanity has also benefited, although that organization hasn’t come under criticism.
For instance, as part of Bank of America’s $16.65 billion settlement with the Department of Justice in 2014 (a former subsidiary of the company, Countrywide Financial, was one of the most toxic subprime mortgage lenders), the bank could donate $100 million to community and legal groups. Such donations to approved groups would then count toward the settlement’s total value.
Conservative groups portrayed the Obama administration as a shadowy slush fund for leftist organizations, hyping connections of the groups that received funding to ACORN, the Republican bogieman that was defunded after false accusations of wrongdoing.
In reality, the Department of Justice was using its settlements to help fund advocacy groups that fought for the people and communities hurt by the wrongdoing the DOJ was attempting to correct. Often, that meant funding groups that work to help the poor and minorities fight against foreclosure and help facilitate reinvestment in the communities devastated by bank fraud.
So, what did Sessions actually do? He sent this memo:
Chairman of the Judiciary Committee, Goodlatte authored a bill to stop this nonsense too. That is found here.
For instance, under Obama, a huge settlement against Bank of America in the amount of $16 billion contained provisions where millions went to community development causes and housing nonprofit operations. The case against Volkswagen was much the same where part of the $2 billion settlement went to infrastructure schemes and education for zero emission vehicles. These are but two items as a sample and the decisions for contributions was subjective and at the discretion of the White House and the Justice Department.
Further, only Congress has the authority to determine where funds are spent and that authority was upheld in a Court of Appeals decision, found here.
In summary too bad for HuffPo and good for AG Sessions.
