The way it works is Justice prosecutes a company, typically a big bank, and they always settle because the risk of fighting the government is too great. Then Justice requires as part of the settlement that a huge portion of the money, and we are talking big big money, hundreds of millions at a time, be directed to "community groups", aka liberal activists who are often involved in the worst kinds of radicalism, the kind that even establishment dems don't want to be directly associated with. It is exactly the same kind of extortion that Jesse Jackson practiced so successfully for so long. I suppose it is no surprise that this national rollout of the "chicago way" of corruption took place under our current president and justice department.
As the WSJ put it:
... .
This is the Obama administration riding roughshod over the most basic of congressional powers—those of spending and oversight. Adding to the insult, Justice is routing money back to programs that congressional Republicans deliberately stripped of funds. In 2011 Republicans eliminated the Housing Department’s $88 million for “housing counseling” programs, which spread around money to groups like La Raza. Congress subsequently restored only $45 million, and has maintained that level. These bank settlements pour some $30 million into housing counseling groups, thereby essentially restoring all the funding.
It’s also a classic Obama end run around the law.
House Judiciary Chairman Bob Goodlatte, who has spent a year investigating and pushing back against Justice’s slush fund, has noted that the Miscellaneous Receipts Act requires money received by the government from any source to be deposited in the Treasury. Directing banks to give money to third parties is a slippery way of evading that statute.
He’s also noted that Justice’s own internal guidelines discourage donations to third parties, precisely because of the risk it “can create actual or perceived conflicts of interest and/or other ethical issues.” No kidding. Mr. Goodlatte has discovered that some of the activist groups that stood to benefit from these transfers were involved in getting the requirements put into the settlements. He’s called on Justice to end the practice, and the department’s response has been to double down.
... . See http://www.wsj.com/article_email/justices-liberal-slush-fund-1449188273-lMyQjAxMTI1MDA0NDMwMjQxWj
As the WSJ put it:
... .
This is the Obama administration riding roughshod over the most basic of congressional powers—those of spending and oversight. Adding to the insult, Justice is routing money back to programs that congressional Republicans deliberately stripped of funds. In 2011 Republicans eliminated the Housing Department’s $88 million for “housing counseling” programs, which spread around money to groups like La Raza. Congress subsequently restored only $45 million, and has maintained that level. These bank settlements pour some $30 million into housing counseling groups, thereby essentially restoring all the funding.
It’s also a classic Obama end run around the law.
House Judiciary Chairman Bob Goodlatte, who has spent a year investigating and pushing back against Justice’s slush fund, has noted that the Miscellaneous Receipts Act requires money received by the government from any source to be deposited in the Treasury. Directing banks to give money to third parties is a slippery way of evading that statute.
He’s also noted that Justice’s own internal guidelines discourage donations to third parties, precisely because of the risk it “can create actual or perceived conflicts of interest and/or other ethical issues.” No kidding. Mr. Goodlatte has discovered that some of the activist groups that stood to benefit from these transfers were involved in getting the requirements put into the settlements. He’s called on Justice to end the practice, and the department’s response has been to double down.
... . See http://www.wsj.com/article_email/justices-liberal-slush-fund-1449188273-lMyQjAxMTI1MDA0NDMwMjQxWj