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Hillary's Favorite Billionaire!

- January 6, 2016

Warren Buffett's Company Is Being Eyed By The Feds For Discriminatory Lending Practices


TOP TAKEAWAYS

  • Today, Clinton's "favorite billionaire" Warren Buffett is fundraising with her in California.
  • Clayton Homes, owned by Warren Buffett's Berkshire Hathaway Company, has just come under federal investigation for discriminatory lending practices in minority communities across America.
  • Buffett told Berkshire Hathaway shareholders that he has "no apologies" about Clayton Homes lending terms.
  • Clayton Homes is the same company that knowingly supplied cancer-trailers to Haiti as part of the Clinton Foundation's failed relief projects in the country.

TODAY, CLINTON IS FUNDRAISING WITH HER "FAVORITE BILLIONAIRE" WARREN BUFFETT

Today, Buffett Is Scheduled To Join Clinton For A "Big-Money Campaign Event" In Los Angeles. "And, in a sign that his involvement will only ramp up from here, he's scheduled to join Clinton for yet another big-money campaign event in the Democratic financial hub of Los Angeles on January 7." (Gabriel Debenedetti, "Clinton Leans On Billionaire Warren Buffet," Politico, 12/16/15)

Earlier This Week, Clinton Has Called Buffett Her "Favorite Billionaire." CLINTON: "Right before Christmas, I was over in Omaha with Warren Buffett, who endorsed me, one of the things I like about him, he's my favorite billionaire, because he says tax me more!" (Hillary Clinton, Town Hall Event, Sioux City, IA, 1/5/16)

Click To Watch

THE CONSUMER FINANCIAL PROTECTION BUREAU SAYS BUFFETT'S BERKSHIRE HATHAWAY OWNED CLAYTON HOMES DISCRIMINATION AGAINST MINORITY CUSTOMERS IS "VERY CONCERNING"

The Discriminatory Practices Of Clayton Homes , Which Is Controlled By Warren Buffett, Have Caught The Attention Of The Consumer Financial Protection Bureau. " An investigation into potential discriminatory lending practices of a company owned by Berkshire Hathaway is spurring attention by the Consumer Financial Protection Bureau." (Rachel Witowski, "CFPB Eyeing Discrimination Claims Against Berkshire Unit," American Banker , 12/29/15)

  • CFPB Spokesman Sam Gilford Said The Allegations Against Clayton Homes Are "Obviously Very Concerning To The Bureau." "'The allegations of discrimination and predatory practices raised by the reporting are obviously very concerning to the Bureau,' Sam Gilford, a spokesman for the CFPB, said in a statement Tuesday to American Banker. Observers said they are not surprised that such claims are triggering enhanced scrutiny by the CFPB and other regulators." (Rachel Witowski, "CFPB Eyeing Discrimination Claims Against Berkshire Unit," American Banker , 12/29/15)

Clayton Homes Which Is Controlled By Warren Buffett, "Systematically Pursues Unwitting Minority Home Buyers And Baits Them Into Costly Subprime Loans …" "The company is controlled by Warren Buffett, one of world's richest men, but its methods hardly match Buffett's honest, folksy image: Clayton systematically pursues unwitting minority home buyers and baits them into costly subprime loans, many of which are doomed to fail, an investigation by BuzzFeed News and the Seattle Times has found." (Daniel Wagner And Mike Baker, "Warren Buffett's Predatory Lender Charges Minorities A Lot More," BuzzFeed, 12/26/15)

  • Warren Buffett's Berkshire Hathaway Bought Clayton Homes In 2003 For $1.7 Billion. "Clayton was less reliant on lending to minorities in 2004, the first full year after Buffett's Berkshire Hathaway bought the company for $1.7 billion." (Daniel Wagner And Mike Baker, "Warren Buffett's Predatory Lender Charges Minorities A Lot More,"BuzzFeed, 12/26/15)

Warren Buffett Told Berkshire Hathaway Shareholders That He Makes "No Apologies Whatsoever About Clayton's Lending Terms." "For an earlier story detailing Clayton's widespread abuse of borrowers, a Clayton spokesperson said that the company helps customers find homes within their budgets and has a 'purpose of opening doors to a better life, one home at a time.' Buffett later defended the company, telling Berkshire Hathaway shareholders he makes 'no apologies whatsoever about Clayton's lending terms.'" (Daniel Wagner And Mike Baker, "Warren Buffett's Predatory Lender Charges Minorities A Lot More," BuzzFeed , 12/26/15)

Clayton Homes Is Accused Of Breaking Fair Housing Laws

Fair Housing Laws Prohibit Lenders From Overcharging And Targeting People Of Color. "Fair housing laws prohibit lenders from targeting and overcharging people of color, whose communities historically were denied access to credit." (Daniel Wagner And Mike Baker, "Warren Buffett's Predatory Lender Charges Minorities A Lot More," BuzzFeed, 12/26/15)

Clayton's Minority Borrowers Paid Higher Interest Rates Than White Borrowers Making Less Money. "The gap between Vanderbilt's disclosed interest rates for whites and those for minorities - more than 0.7 percentage points on the annual rate - is the largest among big mobile-home lenders. That difference can amount to thousands of dollars over the life of an average loan. The disparity persists even after adjusting for income: Minority borrowers earning between $75,000 and $100,000 on average pay interest rates slightly higher than those paid by Vanderbilt's white borrowers making only $25,000 to $50,000, according to a BuzzFeed News-Seattle Times analysis of recent federal loan data." (Daniel Wagner And Mike Baker, "Warren Buffett's Predatory Lender Charges Minorities A Lot More,"BuzzFeed, 12/26/15)

Clayton Homes Has "Damaged Minority Communities"

Clayton's "Predatory Practices" Have Hurt "Minority Communities." "Clayton's predatory practices have damaged minority communities - from rural black enclaves in the Louisiana Delta, across Spanish-speaking swaths of Texas, to Native American reservations in the Southwest." (Daniel Wagner And Mike Baker, "Warren Buffett's Predatory Lender Charges Minorities A Lot More," BuzzFeed, 12/26/15)

  • Clayton Customers Lost Homes, Thousands Of Dollars In Down Payments And "Land They'd Owned Outright." "Many customers end up losing their homes, thousands of dollars in down payments, or even land they'd owned outright." (Daniel Wagner And Mike Baker, "Warren Buffett's Predatory Lender Charges Minorities A Lot More," BuzzFeed, 12/26/15)

Clayton Homes Has Used "A Pattern Of Deceptions" To Profit From "Poor Customers Around The Country." "It is just one in a pattern of deceptions that Clayton has used to help extract billions from poor customers around the country - particularly people of color, who make up a substantial and growing portion of its business." (Daniel Wagner And Mike Baker, "Warren Buffett's Predatory Lender Charges Minorities A Lot More," BuzzFeed, 12/26/15)

Clayton's Control Of The Lending Market In Minorities Communities "Verges On Monopolistic…" "In minority communities, Clayton's grip on the lending market verges on monopolistic: Last year, according to federal data, Clayton made 72% of the loans to black people who financed mobile homes." (Daniel Wagner And Mike Baker, "Warren Buffett's Predatory Lender Charges Minorities A Lot More," BuzzFeed, 12/26/15)

As Clayton Expanded Its Minority Custom Base, They Didn't "Provide Spanish Speaking Customer With Translated Load Documents Or Interpreters At Closing." "As it drew in more Latino customers, however, Clayton's practice was not to provide Spanish-speaking customers with translated loan documents or interpreters at closing - even after employees at headquarters complained that too many customers were being misled about loan terms." (Daniel Wagner And Mike Baker, "Warren Buffett's Predatory Lender Charges Minorities A Lot More," BuzzFeed, 12/26/15)

Warren Buffett's Berkshire Hathaway Profits Off Of Clayton Homes Discriminatory Lending Practices

Berkshire Hathaway Profits Off Of Foreclosure, Through Repossession And Resale Of Clayton Homes. "Even when loans go bad quickly, the sale can be profitable for Berkshire Hathaway. Clayton often marks up new homes about 70% over invoice, company documents show. After a 20% down payment and thousands of dollars in fees added into the loan, Clayton can recoup more than half the wholesale price of the home in a year. When borrowers stop paying, the company can repossess and resell the home, again with another markup." (Daniel Wagner And Mike Baker, "Warren Buffett's Predatory Lender Charges Minorities A Lot More," BuzzFeed, 12/26/15)

Berkshire Hathaway "Extracts Value" Off Of Every Stage Of A Clayton Home By Using Paint And Carpeting From Other Berkshire Hathaway Subsidiaries. "Berkshire extracts value at every stage of the process. Clayton even builds the homes with materials - such as paint and carpeting - supplied by other Berkshire subsidiaries." (Mike Baker And Daniel Wagner, "The Mobile-Home Trap: How A Warren Buffett Empire Preys On The Poor," The Seattle Times , 4/2/15)

CLAYTON HOMES IS THE SAME BERKSHIRE HATHAWAY COMPANY THAT SOLD CANCER-TRAILERS TO THE CLINTON FOUNDATION FOR HAITI RELIEF

Clinton Promised To Bring Haiti Back Better Than Before, But Berkshire Hathaway Owned Clayton Homes Supplied Haitians With Cancer-Trailers Well Known For Being Hazardous

In 2010, Clinton Vowed The U.S. "Will Be Here Today, Tomorrow, And For The Time Ahead," And That Haiti "Can Come Back Even Stronger And Better In The Future." HILLARY CLINTON: "I want to speak directly to the Haitian people through the Haitian media. We are here at the invitation of your government to help you. As President Obama has said, we will be here today, tomorrow, and for the time ahead. And speaking personally, I know of the great resilience and strength of the Haitian people. You have been severely tested. But I believe that Haiti can come back even stronger and better in the future." (Hillary Clinton, Remarks, Port-Au-Prince, Haiti, 1/16/10)

Click To Watch

Clayton Homes Supplied Trailers For Haitians That Gave "Painful Headaches," A "Burning Sensation" In The Eyes, And "Worrying Levels" Of Carcinogens

Part Of The Clinton Foundation's Response To The Haitian Earthquake Consisted Of "Twenty Imported Prefab Trailers Beset By A Host Of Problems, From Mold To Sweltering Heat To Shoddy Construction." "However, when Nation reporters visited the 'hurricane-proof' shelters in June, six to eight months after they'd been installed, we found them to consist of twenty imported prefab trailers beset by a host of problems, from mold to sweltering heat to shoddy construction." (Isabel Macdonald and Isabeau Doucet, "The Shelters That Clinton Built," The Nation, 7/11/11)

  • Clayton Homes, Who Provided The Trailers, Was Owned By Warren Buffett's Berkshire Hathaway. " Clayton Homes is owned by Berkshire Hathaway, the holding company run by Warren Buffett, one of the 'notable' private-sector members of the Clinton Global Initiative, according to the initiative's website." (Isabel Macdonald and Isabeau Doucet, "The Shelters That Clinton Built," The Nation, 7/11/11)

An Investigation Of The Trailers Placed In Haiti By Clayton Homes Found Some Contained "Worrying Levels" Of The Carcinogen Known As Formaldehyde. "Most disturbing, they were manufactured by the same company, Clayton Homes, that is being sued in the United States for providing the Federal Emergency Management Agency (FEMA) with formaldehyde-laced trailers in the wake of Hurricane Katrina. Air samples collected from twelve Haiti trailers detected worrying levels of this carcinogen in one, according to laboratory results obtained as part of a joint investigation by The Nation and The Nation Institute's Investigative Fund." (Isabel Macdonald and Isabeau Doucet, "The Shelters That Clinton Built," The Nation, 7/11/11)

  • The Lab Tests Concluded That Some Of The Clinton Foundation Trailers Contained "Two And A Half Times" The Level Of Carcinogen At Which The CDC Warns Of Adverse Health Effects. Lab tests conducted as part of our investigation in Haiti discovered levels of the carcinogen in the sixth-grade Clinton Foundation classroom in Léogâne at 250 parts per billion-two and a half times the level at which the CDC warned FEMA trailer residents that sensitive people, such as children, could face adverse health effects." (Isabel Macdonald and Isabeau Doucet, "The Shelters That Clinton Built," The Nation, 7/11/11)

The Trailers Were Manufactured By Clayton Homes, The Same Company "Being Sued In The United States For Providing" FEMA With "Formaldehyde-Laced Trailers In The Wake Of Hurricane Katrina." " Most disturbing, they were manufactured by the same company, Clayton Homes, that is being sued in the United States for providing the Federal Emergency Management Agency (FEMA) with formaldehyde-laced trailers in the wake of Hurricane Katrina." (Isabel Macdonald and Isabeau Doucet, "The Shelters That Clinton Built," The Nation, 7/11/11)

In An Interview With Students Using The Clinton Foundation Classrooms, The Nation Found Students "Regularly Suffer From Painful Headaches." "As Judith Seide, a student in Lubert's sixth-grade class, explained to The Nation, she and her classmates regularly suffer from painful headaches in their new Clinton Foundation classroom. Every day, she said, her 'head hurts and I feel it spinning and have to stop moving, otherwise I'd fall.' Her vision goes dark, as is the case with her classmate Judel, who sometimes can't open his eyes because, said Seide, 'he's allergic to the heat.'" (Isabel Macdonald and Isabeau Doucet, "The Shelters That Clinton Built," The Nation , 7/11/11)

  • Other Exposed To The Clinton Foundation Trailers Complained Of Feeling A "Burning Sensation" In Their Eyes. "Innocent Sylvain, a shy janitor who looks much older than his 41 years, spends more time than anyone in the new trailer classrooms, with the inglorious task of mopping up the water that leaks through the doors and windows each time it rains. He has felt a burning sensation in his eyes ever since he began working long hours in the trailers. One of his eyes is completely bloodshot, and he said, 'They itch and burn.'" (Isabel Macdonald and Isabeau Doucet, "The Shelters That Clinton Built," The Nation, 7/11/11)

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