All The News That Fits

Succumbing To Blackmail

Posted by Nancy on January 24, 2010

Who’s to blame for the banking meltdown and our current economic crisis?  If you believe Mr. Obama that it’s George W. Bush, read this article from 1988 then watch the first few minutes of the video at the bottom.

Bank South’s $5 Million Promise Appeases ACORN

 By Bill Dedman, The Atlanta Journal-Constitution 

 Published July 14, 1988, Page B1
Copyright 1988, The Atlanta Journal-Constitution
 To settle a legal challenge by a community group, Bank South has agreed to chip in another $5 million in home loans at low interest rates in Atlanta’s black and working-class areas.  In return, the community group says it will drop its challenge to the bank’s first interstate merger.
 ACORN cited the articles in its challenge before the Federal Reserve Bank of Atlanta. The group asked the Fed to delay or deny Bank South’s application to buy C&P Bank Corp. of Pensacola.  [snip]

“I think we’re going to withdraw our challenge based on the $5 million,” said ACORN organizer Grant Williams. “I don’t think we can get much more, based on our experience and their hard line. We may be selling short, but I don’t know.”

ACORN leaders said the bank refused to attend a negotiating session ACORN proposed to hold with federal authorities present. [snip]

ACORN had asked for other items, including $100,000 in contributions to groups like ACORN.

“I told them that was highly unlikely,” said Bucky Kimsey, a bank senior vice president.


The $5 million will increase Bank South’s contribution to the Atlanta Mortgage Consortium to $7.35 million. That makes it the largest supporter of the pool formed in May. The pool now has $25 million, in addition to $47 million in loan programs set up by larger Atlanta banks, for a total of $72 million.

The bank also has agreed to consider making a large deposit in a community credit union ACORN says it might establish in Atlanta.

 Looks more like succumbing to blackmail than wise business decisions, and ACORN had those “federal officials” waiting in the wings to assist.  And the long term consequences of forcing loans based on pressure from special interestes rather than fiduciary responsibility would be..?

One Response to “Succumbing To Blackmail”

  1. Refinance said

    Ah! This is perfect! Thank you for dispelling many
    misconceptions I have read on this as of late.

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