Skip to comments.ACLU sues Morgan Stanley over risky mortgages
Posted on 10/15/2012 7:46:22 AM PDT by Oldeconomybuyer
The American Civil Liberties Union sued Morgan Stanley on Monday, charging the Wall Street firm discriminated against African-American homeowners and violated federal civil rights laws by providing funding for risky mortgages.
The suit, filed in U.S. District Court in New York, is the first that connects racial discrimination to the process of bundling subprime loans into mortgage-backed bonds that were then sold to institutional investors and pension funds. The lawsuit was filed behalf of five Detroit residents, and asks the court to certify the case as a class action. It argues as many as 6,000 black homeowners in the Detroit area may have suffered similar discrimination.
(Excerpt) Read more at money.cnn.com ...
They were the funders for the banks, who had to make the risky mortgages in order to operate in the city. They were operating under the regulations that existed then. Were they risky? You betcha. Look at the foreclosure rate. Borrowers went in knowing that they couldn’t make the payments. But the banks were required by the bank regulators to make the loans.
Community Reinvestment Act
Exactly. Make the loans and get sued by the ACLU. Don’t make the loans and get sued by Bill Clinton, oops, make that the U.S. Government.
And the people responsible for the arm twisting are the same that are blaming those with the broken arms for causing harm.
what a scam
The Feds were threatening to sue if the banks didn't give AAs easy mortgage loans, and now they are being sued for giving them said loans.
How can one function in an Alice in Wonderland country?
Well....slap my white a$$ and call my Suzy!
"We badgered, cajoled, threatened, coerced and extorted these loans via the likes of Barney Fag et al, and these rich white M'effers had the racist audacity to make these loans knowing full well we couldna paid'em back"
The honky whitebread cracker nerve of those white, rich, banker bastards!
They will settle.
Houses in Detroit going for $5000. Morgan Stanley will give them to the plaintiffs for free and move on. It’s way cheaper than paying their lawyers for 5 or 6 years.
(( ping )).
You're probably right but there's incredible downside to taking the easy way out, namely, it only emboldens the race-baitors and aclu; guaranteeing this nonsense will continue.
Yeah they would sue either way to make a dime; sue them for not financing their mortgage loans because it was too risky or sue them if they gave them the loans knowing they couldnt pay them which is even more insane. You can’t reason with these people. They want a handout either way. Probably because they can’t find a job due to their messiah’s economic policies but they avent figured that out yet.
They are not being sued for making the loans.
They are being sued for having the audacity to expect that the AA recipients of the loans should pay the loans back.
wait they were discriminated against because they were granted mortgages?
A brief look at the economic numbers will provide the answer....
Business aren’t hiring because they are all selfish and keeping all their money for furs and vacations.
Banks are not lending because they are greedy and sitting on their money.
If they don’t lend to the poor they are “redlining”. If they do lend they are “predatory loans”.
I just let you look into a leftist’s head. You’re welcome.
Unlike Podunk City Hall, Morgan Stanley HAS the money to fight them.
” Well....slap my white a$$ and call my Suzy!”
OK, Sue : )
The banks were complying with the law. Did they get greedy?
Yes. Did they break the law? Probably not.Tell the ACLU to
sue Barney Frank.
Lefties have fabricated a form of perpetual motion!!!
You can't make up crap any more stupid (or damaging) than this.
A: Because you asked for it?
Q: But we couldn't afford it- why did you still give it to us?
A: Community Reinvestment act.
Q: What's that?
A: A law that said we could not ‘redline’ people (mark them as not able to afford a mortgage)
Q: Thats a stupid law- whose Idea was that?
Q: So you didn't have to listen to it, did you?
A: Andrew Cuomo sued the first bank for ‘discrimination’ and won (what was at the time) the biggest settlement in US history.
The rest of us figured OK- we are going to be guaranteed by the government if we make these loans, and we are going to get sued if we don't, so F*CK ‘em
What in what I posted makes you think it was the bankers’ fault. You preachin to the choir....read it again.
Of course, no ARM based on a reasonable index has gone up in years; most have probably reset down.
She probably had an interest-only ARM and gambled on being able to refi before the interest-only period expired.
” What in what I posted makes you think it was the bankers fault.”
I didn’t. Sorry if I was vague.
I’m fluent in leftist native American mythology.
the way the ACLU makes money is by suing the govt then asking for attorney fees and costs.
ACORN’s brochure, “To Each Their Home”:
Treats welfare, child support and FOOD STAMPS as “income”!!!
Community Reinvestment Act.””
Lawyers for the banks need to bring this law out in DETAIL & show the world that Jimmah Carter & his Congress started the ball rolling that caused the mortgage mess.
They also need to find the press conference where Janet Reno threatened each & every bank in the country with ‘the power of the Justice Department’ if they didn’t give out these shaky loans.
Freepers need to be familiar with subject matter. Subprime loans were suppose to be used on minorities who cannot qualify under standard criterias. Getting the loan comes with a price for the applicant. Higher fees and interest rate. Many black borrowers did not need subprime loans because they had the income and credit history. Bankers told them that they did not qualify for conventional loans and their best chance to get a mortgage is a subprime one. Bankers pocketed higher fees and quickly sold it to the FMFM within six months. Also bankers encouraged many black borrowers who qualfied for small conventional loans to take on the larger subprime because of the lax documentation to buy the house of their dreams with the perception that real estate prices will keep going up and up. In essense the minority borrower was dumb and the mortgage banker was unscrupulous. The trials will shake all this info out into the openning. Gov and minorities will look stupid and the bankers will look criminal.
They should be suing obama! He was the attorney for ACORN in a lawsuit against Citibank in 1994 that demanded that banks change their loan practices to give more loans to unqualified blacks. Many Democrats also demanded the loans be made (especially Dodd and Frank) Now they are suing because they got their way and got the loans. You just can’t win with the radical left who are always looking to blame others and get a handout along the way. NObama 2012
Please correct me if I'm wrong, but Wall Street did NOT and could not by law do so.
That was Bawney Fwank and Todd who made it MANDATORY for BANKS to make those loans.
Once those loans were made, it doesn't much matter how they were subsequently handled. The taxpayer was already on the hook.
The Federal Government, Congress, BAWNEY FWANK, CHRIS THE PERVERT TODD, FANNIE MAE and FREDDY MAC are solely and totally responsible.
How is the ACLU planning to neutralize reality?
Damned if you do and damned if you don’t. Typical deal with socialists.
I figured ACLU was defunct since I haven’t heard them say anything about the proposed international blasphemy laws...