The Obama administration has been accused of pressuring big banks to give money to liberal “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 according to The Hill.
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.
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.
Rep. Tom Marino (R-Pa.), said that the administration “does believe in trickle-down economics so long as the money is trickling through activist groups.”
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