In a move that has raised eyebrows and concerns, President Joe Biden's administration is pressuring banks to approve loans for illegal migrants. According to a Breitbart article by Neil Munro, federal agencies are threatening banks with investigations if they do not comply. This policy not only jeopardizes the financial stability of banks but also poses significant risks to ordinary American citizens and small business owners.
The Biden administration's pro-migration radicals have issued threats to banks, warning them against denying loans based on immigration status. Kristen Clarke, Biden’s chief of the Justice Department’s civic regulation division, stated that denying someone access to credit based solely on their immigrant status "may violate federal law."
However, she provided no evidence to substantiate such claims. Rohit Chopra, director of the Consumer Financial Protection Bureau, also warned against using immigration status as an excuse for illegal discrimination, again without providing any evidence.
"The government 'will not allow companies to use immigration status as an excuse for illegal discrimination,'" said Rohit Chopra.
Banks have valid reasons to be cautious about extending loans to illegal migrants. Firstly, the risk of unpaid loans could severely impact their profitability and burden their legitimate American clients. Secondly, many illegal migrants are already under financial pressure to repay high-interest loans to smugglers, meaning U.S. bank loans could indirectly subsidize international smuggling operations.
The administration's pressure on banks is not without historical precedent. Similar political coercion led banks to maximize high-risk home loans in the early 2000s, contributing to the 2008 economic crash. The current policy could have similar disastrous outcomes, as it makes banks vulnerable to both overt and covert retaliation for not complying with political demands.
The Biden administration's push to coerce banks into granting loans to illegal migrants is fraught with risks and raises ethical questions. It not only endangers the financial stability of the banks but also has far-reaching implications for ordinary Americans.