During a House hearing on Thursday, Rep. Michele Bachmann pinned blame for financial crisis on President Clinton, “blacks,” and “other minorities.” To make her point, she read from an article written by Terry Jones in the right-wing publication Investor’s Business Daily. Jones criticized the Community Reinvestment Act (CRA) and said Clinton was misguided for pushing “homeownership as a way to open the door for blacks and other minorities to enter the middle class.” Watch Bachmann’s speech, followed by sharp criticism from Rep. Keith Ellison (D-MN) here.
In a new letter to House Minority Leader John Boehner (R-OH) obtained by ThinkProgress, 31 members of the Congressional Black Caucus (CBC) call Bachmann’s claims “ridiculous” and ask Boehner whether her comments represent the views of the Republican Caucus:
It is clear from Rep. Bachmann’s comments that she believes that the bipartisan laws enacted over the past decade ensuring that minority communities have equal access to banking and other financial services are the cause of this financial situation. [...]
There is no evidence to support Rep. Bachmann’s assertion that “minorities” caused the current financial crisis. Laws designed to open opportunities for equal access to credit do not require banks or thrifts to make loans that are unsafe or unprofitable. In fact, laws like the CRA mandate exactly the opposite. [...] Additionally, research clearly shows that the majority of the predatory loans that have led us to this financial mess were originated by non-bank financial institutions and other entities that did NOT have a CRA obligation and lacked strong federal regulatory oversight. Shifting the blame for the current economic crisis to laws that allow equal access and opportunities to communities of color is ridiculous.
As members of the CBC, we simply ask if Rep. Bachmann’s position that it was lending to minority communities that caused the current financial crisis, represent the position of Republican Caucus?