Skip to comments.Civil rights complaint targets Wall Street rating firms
Posted on 11/30/2008 10:49:56 AM PST by libstripper
In what is apparently the first legal action of its kind, an association of community-based organizations has filed a federal civil rights complaint against two of the three largest Wall Street rating firms, charging that their inflated ratings on subprime mortgage bonds disproportionately caused financial harm to African American and Latino home buyers across the country.
The complaint, filed by the National Community Reinvestment Coalition, alleges that Moody's Investors Service and Fitch Ratings enriched themselves by assigning high ratings to bonds backed by mortgages "that were designed to fail" because of "unfair payment terms and insufficient borrower income levels."
(Excerpt) Read more at latimes.com ...
One of the best lines FTA:
d subprime loans been distributed equitably," the complaint estimates, "losses for whites would be 44.5% higher and losses for people of color would be about 24% lower."
How, perchance, could ARMs and other dubious mortgages be "distributed more equitably" to people, like me, who never wanted anything to do with them??
The people who ought to be suing the services are pensioners wnd other investors who bought toxic securities on the basis of the services' inflated ratings and lack of due dilligence. Of course, a class action suit like that would blow the whole CRA scam.
Can we sue the community organizers?
Wall Street is all Democrat. Let them fight on with the community organizers.
The community organizers who actively pushed for these mortgages deserve to be sued as well.
To all you bankers who drank the PC kool-aid: HA, HA!
These corrupt democrat party vermin who destroyed the US and world economies remain extremely dangerous.
This news isn’t so bad. It means we’ll be able to sue Obama when socialism doesn’t work.
Sheesh! They got subprime loans because that is what they qualified for. Their alternative was NO loan. Now they want to sue about it. Race pimping at its best!!
Yes, normal borrowers should have opted for crazy balloon loans and lied on their mortgage applications in order to obtain worse deals and ensure “equity”.
Stated differently, too many “minorities” and not enough “whites” lied on their mortgage applications.
The brazenly meretricious nonsense that springs from the mouths of lawyers boggles the mind.
..... More evidence that real life is an order of magnitude weirder than anything a fiction writer could possibly conceive on his most acute drug trip.
I see we’ve learned nothing from the subprime meltdown.
These infernal capitalists took away their ability to sue for undervaluing the bonds. Their only option is to sue that they overvalued them.
This fiasco has ACORN's, the CRA's, and The Democrat Party's fingerprints all over this mess, and of course the Boot licking Pravda West Media is unwilling to do their job and report the facts.
Un...well...I think that....forget it, I’ll retire to Bedlam. -:)
I got rope !
I wouldn’t get an ARM if it was my only option to own a home, I would rent.
Does that make me discriminated against?
Maybe instead of suing Wall Street, they should set up educational shops on how to manage money.
These people are freaking nuts. Or they are consciously trying to destroy this nation. Or both.
I just read a moron telling someone that capitalism was bad because the retailers would lay off people after the holidays.
I don’t get it.