(NEWS.INVESTORS) — Bank of America (BAC) must turn over excess funds from a record $335 million discrimination fine to community organizing groups. Critics say it’s a “political backdoor” to subsidize Democrat-tied Acorn “clones.”
The unusual mandate is buried in a Justice Department filing last month detailing settlement terms with the nation’s largest bank. Prosecutors had alleged BofA’s Countrywide Financial mortgage unit discriminated against minority homebuyers in the years leading up to the financial crisis.
Funds not passed out to alleged victims after two years will be handed out to “qualified” groups unconnected to the case that provide credit and housing counseling and similar services to blacks and Hispanics in areas where the discrimination allegedly occurred.