Washington Examiner discusses with Ted Frank, how banks get double credit for their donations ordered by settlements.
Not only do both banks get double credit toward their overall penalties for each donation, but there is also no explicit cap on the amount of credits they can get. They could erase potentially hundreds of millions of dollars in federal penalties in this way.
"The DOJ announces, 'Oh, we have gotten these multibillion settlements,' and then you look at the fine print and see the banks get more credit for giving to a slush fund than to the Treasury," said Ted Frank, founder of the nonprofit Center for Class Action Fairness.
Direct consumer relief, on the other hand, such as forgiving delinquent loans, earns the banks at best only $1 of credit for each dollar they spend. Sometimes less.
Read the full article at the Washington Examiner.