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 ...
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.
No problem....
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”:
http://www.capitalresearch.org/wp-content/uploads/2008/10/toeachtheirhome.pdf
Treats welfare, child support and FOOD STAMPS as “income”!!!
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.
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...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.