Tuesday, May 26, 2015

What's Next for OBAMAnomics? Racial Quotas For Small Business Loans

Credit: The Obama regime is proposing a new rule forcing banks for the first time to report small-business lending data by race. The data will be used by diversity police to accuse lenders of "disparate impact" discrimination.
Lenders must report if a firm that applied for a loan is minority-owned, and if the application was denied.
Bank regulators will use that data to "facilitate enforcement of fair lending laws," including the Equal Credit Opportunity Act, as well as provisions of the Community Reinvestment Act — the law that, after a Clinton-era rewrite, encouraged "flexible underwriting" and unsafe home loans in urban neighborhoods.
"We are concerned about fair lending risk in small-business lending," the powerful Consumer Financial Protection Bureau said in a recent report announcing the new loan-reporting mandate.
The administration will use the small-business-loan data as a cudgel to beat banks into lending more to minority businesses, just as it's done in the home and car finance industries, regardless of financial risk.
Banks should brace for a slew of race-bias investigations and state-based disparate-impact lawsuits starting in 2016. The government will force banks to do for minority small businesses what it did for minority homebuyers. By that, we mean bankrupt them.
The regulatory push to racialize and socialize business lending is coming from the top.
Read the rest of the story HERE.

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