[Guest post by DRJ]
Bank of America has temporarily suspended its dealings with ACORN’s housing division:
“In a statement, Bank of America said it would not enter into any further agreements with ACORN Housing Corp. until the bank is satisfied all issues have been resolved. ACORN Housing Corp. and Bank of America have worked together for years on mortgage foreclosure issues.
“We completely understand why our lending partners like Bank of America want assurances that the recent allegations against us won’t happen again,” ACORN Housing Corp. said. “We are taking a number of steps to ensure this, including providing ethics training to all of our staff.”
The decision appears to be in response to this:
“On Friday, GOP Reps. Spencer Bachus of Alabama, Darrell Issa of California and Lamar Smith of Texas sent a letter to 14 banks requesting disclosure to the House Financial Services Committee of all financial arrangements with ACORN and its subsidiaries or affiliates.
Each of the three congressmen is the ranking Republican on a House panel: Bachus on the House Financial Services Committee, Issa on the Oversight and Government Reform Committee and Smith on the Judiciary Committee.”
Unlike ACORN’s reasonable written response, CEO Bertha Lewis lashed out at Republicans:
“The Republicans are trying to intimidate banks that have stepped up to help stop the foreclosure crisis,” said ACORN chief executive Bertha Lewis. “These same Republicans ignored ACORN’s warnings about predatory lending and the foreclosure crisis, then gave Wall Street free rein and are now obstructing efforts to help families.”
I think ACORN is better served by reasoned responses than lashing out, but then I also thought ACORN was better served by not filing a lawsuit.