federal deposit insurance corporation
federal deposit insurance corporation: Page 1
I haven't looked into how much of the mortgage mess is due to financial institutions giving mortgages to low-wage workers, including illegal aliens from Mexico; for that, see Steve Sailer. Some but not all of it was, making the June 10, 2004 article from The Economist called "More Mexicans, please" (no author given; economist.com/world/unitedstates/displaystory.cfm?story_id=2752598) a cautionary tale about a) giving in to corruption, and b) trusting The Economist:
NATIVISTS in Texas and Arizona may still want to keep Mexicans out of America, but in the mid-west, far from the border, a growing chorus is calling for better integration of the large Mexican population that already exists. Employers need them, schools are full of their children, politicians seek their votes and, increasingly, banks want their money.
The integration push is already under way at the Mexican consulate in Chicago. Under a programme set up this spring by the Institute for Mexicans Abroad (a government agency created by Mr Fox), daily lectures are held there on topics ranging from worker rights to banking and health care. From 7am each day, crowds of people line up to apply for an identity card known as a matricula consular, which is now accepted as valid ID by 800 law-enforcement agencies across America. As the matriculas have gained wider acceptance, doors have opened to immigrants in other areas, blurring the line between services available to legal and illegal Mexicans.
Now financial institutions are courting these hard-working people. No wonder: Mexicans sent $13.3 billion in remittances home from America last year (providing the second-largest source of income after oil), and three-quarters of those who remit funds have no bank accounts. A growing number of banks (118 nationwide, including 86 in the mid-west) now accept alternative forms of identification—generally the matricula card along with a taxpayer identification number—to open bank accounts. Thirty-three of the 48 American banks that offer international remittance services are in the mid-west, and America's bank regulators are encouraging the efforts. “Banks aren't so interested in the remittances, they're interested in the relationships,” says Michael Frias, an official with the Federal Deposit Insurance Corporation (FDIC). “They're looking at this as a long-term proposition.”
Indeed, and we'll be paying for the decisions made by the FDIC and those like them for a while. For more on this from around the same time as the Economist article, see this, this, this, and more recent examples of this type of corruption are listed on the immigration banks page.
Dianne Feinstein wanted $25 billion for FDIC after they gave her husband a real estate deal - 04/20/09
On the day the new Congress convened this year, Sen. Dianne Feinstein introduced legislation to route $25 billion in taxpayer money to a government agency that had just awarded her husband's real estate firm a lucrative contract to sell foreclosed properties at compensation rates higher than the industry norms.
Mrs. Feinstein's intervention on behalf of the Federal Deposit Insurance Corp. was unusual: the California Democrat isn't a member of the Senate Committee on Banking, Housing and Urban Affairs with jurisdiction over FDIC; and the agency is supposed to operate from money it raises from bank-paid insurance payments - not direct federal dollars...
Her husband is Richard Blum; the company is CB Richard Ellis Group or CBRE. Both of them deny any funny business and say they had no knowledge of the contract.
The City of Los Angeles recently announced a new public-private partnership called "Bank on Los Angeles" (bankonla.com) that's designed to help 10,000 low-income residents who don't have bank accounts ("the unbanked") open up accounts. It's also open to illegal aliens , and that means that Los Angeles City will be encouraging corruption by helping major banks profit from money that was earned illegally.
Bill Clinton, Arnold Schwarzenegger promote corruption, try to fool people about "unbanked" program - 01/24/08
...[The American dream] is harder to achieve for millions of Americans because they spend too much of their hard-earned money on fees to cash their paychecks or pay off high-priced loans meant to carry them over until they get paid at work.They also mention that the William J. Clinton Foundation's Economic Opportunity Initiative will be helping spread the San Francisco scheme to other cities.
...This year, California will become the first state in the nation to launch an effort to help unbanked residents open starter accounts -- the first step into the financial mainstream...
In coordination with the Federal Deposit Insurance Corporation, we will partner with financial institutions to increase the supply of starter accounts that work for unbanked consumers and banks. We will form regional coalitions of financial institutions, mayors and community groups to market accounts and help the unbanked build financial literacy. And we will build on work already being done in San Francisco, where city officials, working with banks and credit unions, have already signed up 11,000 individuals who previously had no checking or savings account...
The San Francisco scheme boils down to the FDIC trying to help banks profit from money that was earned illegally. Instead of fighting against such government corruption, Bill Clinton and Arnold Schwarzenegger are promoting it. Pardon me if I have difficulty thinking of both of them as little more than crooks.
UPDATE: Please contact Arnie and let him know what you think: gov.ca.gov/interact or better yet give his office a call and select the option to speak to a live person: 916-445-2841. And, per a note here, Kevin James of KRLA AM 970 will be discussing this on his show tonight (9:00 - 11:00 pm PST).
[Bill author, supervisor Tom Ammiano] said banking institutions in San Francisco have signaled their willingness to accept the municipal ID card for the purpose of setting up accounts. He noted that people without bank accounts are frequently more vulnerable to theft and robbery.At least the first two banks listed as well as the Federal Reserve have in the past taken steps to profit from indirect illegal activity: the money that illegal aliens earn by working illegally. And, in fact, the Bush administration fought to allow banks to accept Mexico's ID card which is only of use to illegal aliens. And, from the Bank on San Francisco page (sfgov.org/site/bankonsf_index.asp?id=46628):
Officials with the city's Bank on San Francisco program, which helps people obtain bank accounts, said institutions such as Wells Fargo, Bank of America, Washington Mutual and US Bank had expressed interest in accepting the ID cards.
Bank on San Francisco is a city partnership with the Federal Reserve Bank. Although criteria for opening bank accounts are set in part through the USA Patriot Act, "to our knowledge that law is not a bar to a municipal ID," said David Augustine, spokesman for the city treasurer's office, which oversees the program.
Accept alternative forms of identification, such as consular identification cards. For many immigrants, the barrier to opening an account is having the proper documentation.The banks aren't going to earn that much off this; I'd imagine that due to the cost of living in Frisco they don't have a high illegal alien population (except for those living 20 to an apartment in shifts). However, this could be used as an entree to other cities, such as Los Angeles.
As for Ammiano, I'm not familiar with him and I don't know whether he's just a soft-brained far-leftie or whether he's trying to get a piece of the pie. However, I wouldn't be surprised to learn that he's received donations from those banks or he has some sort of other link. Those who live in the area are strongly encouraged to follow the money. His fellow supervisor Gerardo Sandoval is a strong supporter of illegal immigration.
Note that New Haven, CT has their own municipal ID. Their mayor John DeStefano has a possible financial interest and the person in his office who pushed the ID (Kica Matos) previously headed a group (Junta for Progressive Action) that is/was collaborating with the Mexican government.
UPDATE: The "Case Study" PDF at the sfgov link above has some interesting nuggets on the Bank on San Francisco program. First, they've got a section for those "thinking about starting something similar to Bank on San Francisco in your community", and I'm sure some are. As for how it all started:
Anne Stuhldreher, a Fellow at the New America Foundation, approached staff of San Francisco Mayor Gavin Newsom and City Treasurer Jose Cisneros with the initial concept. The Treasurer’s Office convened a working group of the staff of the Mayor and Treasurer, the Mayors Office of Community Development, New America Foundation, and EARN, a citywide nonprofit that helps low-income residents build assets. The Federal Reserve Bank of San Francisco joined the group soon after hearing about the program.To participate in the program, banks have to accept those foreign IDs which are of use only to illegal aliens. And:
From further research, the working group learned that Latinos who are un-banked often don't realize that you do not need a social security number to open an account and that they can open accounts with Mexican or Guatemalan Identification cards.In other words, you don't have to be here legally to have a U.S. bank account.
As for government corruption at the federal level:
[at a meeting] Michael Frias, of the Federal Depository Insurance Corporation [sic], discussed how the New Alliance Task Force is helping banks learn about how they can accept the Matricula Consular Card and develop products and services to help Latino immigrants, save, send money to their home countries, and buy homes... The New Alliance Task Force is a partnership between the FDIC, the Mexican Consulate, banks, community-based organizations, federal regulators, the secondary market, and private mortgage insurance companies. The partnership has opened 50,000 new bank accounts totaling $100 million.In other words, something akin to a federal agency is collaborating with a foreign government to help nationals of that government who are here illegally get home loans, and is assisting banks to profit from money that was earned illegally.
Pro-illegal immigration performance art (funding by Bank of America and Wells Fargo)
Wells Fargo and illegal activity
remesamex.gob.mx features Bank of "America", Wells Fargo, and Western Union
Citibank "recruiting" illegal aliens for home loans
I asked that in last year's "Who is the FDIC? And, why are they working with a foreign government to subvert our laws?".
The blog-like article "Mortgages for Illegal Aliens Encouraged by FDIC" has another round-up on this issue.
Most banks would sell the kidneys of Brazilian garbage men if they could get away with it - 03/16/05
So, it shouldn't come as much of a surprise to find them doing something not nearly as bad but still quite disturbing. Namely, giving home loans to illegal aliens.
The article "Banks Find Mortgage Clientele in Undocumented Immigrants" is the latest in a string of reports about banks funding loans using ITINs ("individual taxpayer identification numbers") rather than social security numbers.
Who is the FDIC? And, why are they working with a foreign government to subvert our laws? - 09/20/04
The FDIC - "an independent agency of the federal government" - is working with the Mexican consulate in Chicago, banks, and community groups to give home loans to "immigrants." If they're legal immigrants, and thus American citizens (or on their way), why is a foreign government involved?
The article "NWI banks offer home loans to undocumented immigrants" (link) explains why: