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ACLU sues Morgan Stanley over risky mortgages
CNN Money ^ | October 15, 2012 | By Chris Isidore

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 ...


TOPICS: Business/Economy; Constitution/Conservatism; News/Current Events; Politics/Elections
KEYWORDS: dodd; frank; subprime
Community Reinvestment Act.
1 posted on 10/15/2012 7:46:34 AM PDT by Oldeconomybuyer
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To: Oldeconomybuyer

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.


2 posted on 10/15/2012 7:53:34 AM PDT by rstrahan
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To: Oldeconomybuyer

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.


3 posted on 10/15/2012 7:54:21 AM PDT by InterceptPoint
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To: InterceptPoint
Morgan Stanley better have guts to stand up and lay it all out. Explain for the short minded why we have arrived at this - they were forced.

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

4 posted on 10/15/2012 8:02:39 AM PDT by NativeSon ( Grease the floor with Crisco when I dance the Disco)
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To: Oldeconomybuyer
Unbelievable! Damned if you do, damned if you don't.

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?

5 posted on 10/15/2012 8:04:53 AM PDT by expat2
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To: Oldeconomybuyer
.....violated federal civil rights laws by providing funding for risky mortgages.

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!

6 posted on 10/15/2012 8:09:42 AM PDT by Gaffer
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To: NativeSon

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.


7 posted on 10/15/2012 8:14:27 AM PDT by Buckeye McFrog
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To: John Semmens

Source material

(( ping )).


8 posted on 10/15/2012 8:19:25 AM PDT by Lancey Howard
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To: Buckeye McFrog
“They will settle.”

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.

9 posted on 10/15/2012 8:23:26 AM PDT by MichaelCorleone ('We the People' can and will take this country back...starting today.)
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To: Gaffer

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.


10 posted on 10/15/2012 8:24:27 AM PDT by jsanders2001
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To: expat2
Unbelievable! Damned if you do, damned if you don't. 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.

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.

11 posted on 10/15/2012 8:26:18 AM PDT by PapaBear3625 (Charlie Daniels - Payback Time http://www.youtube.com/watch?v=EWwTJj_nosI)
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To: Oldeconomybuyer

wait they were discriminated against because they were granted mortgages?


12 posted on 10/15/2012 8:27:36 AM PDT by yldstrk (My heroes have always been cowboys)
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To: expat2
How can one function in an Alice in Wonderland country?

A brief look at the economic numbers will provide the answer....

13 posted on 10/15/2012 8:33:51 AM PDT by Aevery_Freeman (All Y'all White Peoples is racist!)
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To: Oldeconomybuyer

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.


14 posted on 10/15/2012 8:34:07 AM PDT by TurboZamboni (Looting the future to bribe the present)
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To: Aevery_Freeman

Unlike Podunk City Hall, Morgan Stanley HAS the money to fight them.


15 posted on 10/15/2012 8:36:14 AM PDT by massgopguy (I owe everything to George Bailey)
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To: MichaelCorleone
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.

No doubt why they picked Detroit, where the financial calculus in favor of settling is overwhelming.


16 posted on 10/15/2012 8:36:19 AM PDT by Buckeye McFrog
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To: TurboZamboni
I just let you look into a leftist’s head. You’re welcome.

You also summed up the Elizabeth Warren for Senate campaign in 3 lines or less...


17 posted on 10/15/2012 8:39:39 AM PDT by Buckeye McFrog
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To: Gaffer

” 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.


18 posted on 10/15/2012 8:44:13 AM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: Oldeconomybuyer
EUREKA!

Lefties have fabricated a form of perpetual motion!!!

  1. Sue the government to persecute lenders who won't give loans to unqualified minorities who cannot pay them back.

  2. Government forces lenders to give loans to unqualified minorities who cannot pay them back.

  3. Then sue the lenders because they gave loans to unqualified minorities who could not pay them back.

  4. Repeat.

You can't make up crap any more stupid (or damaging) than this.


19 posted on 10/15/2012 8:45:10 AM PDT by Iron Munro (Psalm 109:8 "Let his days be few, and let another take his office.")
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To: Oldeconomybuyer
Q: Why did you give us risky mortgages?

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?

A: Democrats

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

20 posted on 10/15/2012 8:46:00 AM PDT by Mr. K ("The only thing the World would hate more than the USA in charge is the USA NOT in charge")
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To: stephenjohnbanker

What in what I posted makes you think it was the bankers’ fault. You preachin to the choir....read it again.


21 posted on 10/15/2012 8:48:59 AM PDT by Gaffer
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To: Oldeconomybuyer
There was a sob story on local news last week about a retired cop who was going to lose her house because her adjustable rate mortgage payment doubled recently.

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.

22 posted on 10/15/2012 8:52:32 AM PDT by Trailerpark Badass (So?)
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To: Gaffer

” What in what I posted makes you think it was the bankers’ fault.”

I didn’t. Sorry if I was vague.


23 posted on 10/15/2012 8:56:24 AM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: stephenjohnbanker

No problem....


24 posted on 10/15/2012 8:57:36 AM PDT by Gaffer
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To: Buckeye McFrog

I’m fluent in leftist native American mythology.


25 posted on 10/15/2012 9:01:22 AM PDT by TurboZamboni (Looting the future to bribe the present)
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To: Oldeconomybuyer

the way the ACLU makes money is by suing the govt then asking for attorney fees and costs.


26 posted on 10/15/2012 9:49:47 AM PDT by blueplum
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To: Oldeconomybuyer

ACORN’s brochure, “To Each Their Home”:

http://www.capitalresearch.org/wp-content/uploads/2008/10/toeachtheirhome.pdf

Treats welfare, child support and FOOD STAMPS as “income”!!!


27 posted on 10/15/2012 10:11:03 AM PDT by Mortrey (Impeach President Soros)
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To: Oldeconomybuyer

Community Reinvestment Act.””

Exactly!!

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.


28 posted on 10/15/2012 10:38:31 AM PDT by ridesthemiles
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To: yldstrk

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.


29 posted on 10/15/2012 10:51:02 AM PDT by Fee
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To: Oldeconomybuyer

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


30 posted on 10/15/2012 12:11:05 PM PDT by Captain Steve
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To: 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.

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?

31 posted on 10/15/2012 1:09:54 PM PDT by publius911 (Formerly Publius 6961, formerly jennsdad)
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To: Oldeconomybuyer

Damned if you do and damned if you don’t. Typical deal with socialists.


32 posted on 10/15/2012 3:00:28 PM PDT by SaraJohnson
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To: Oldeconomybuyer

I figured ACLU was defunct since I haven’t heard them say anything about the proposed international blasphemy laws...


33 posted on 10/15/2012 3:01:40 PM PDT by UltraV (I use the term Leftist not liberal, because a true liberal would not support government censorship.)
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