Sunday October 20, 2013, 2:00 pm
Under a landmark discrimination lawsuit, Morgan Stanley is being accused of violating the Fair Housing Act by pushing high-risk mortgage loans on African Americans. Individuals in low and middle-income communities in Detroit were especially vulnerable to this kind of activity. The federal Fair Housing Act prohibits discrimination based on race, color, sex, religion, handicap, or national origin.
Morgan Stanley and other Wall Street banks used discriminatory lending practices leading up to the housing crisis of 2008. These banks gave communities of African Americans an overwhelming amount of predatory loans — loans that come with outrageous terms and conditions — usually associated with unfair and deceptive lending practices.
Stand with the ACLU: demand all Wall Street banks that implemented discriminatory lending practices are held accountable!
Sunday October 20, 2013, 11:42 pm
An excerpt from article on the American Civil Liberties Union Website:
"There is a direct line connecting Wall Street to the discriminatory lenders who caused so much damage to communities of color. Many of the worst lenders folded when the housing bubble burst, but their enablers in the securities market mostly remain in business. The harm they caused will run deep and threatens to exacerbate existing racial disparities, damage that may play out over the course of generations. The response, therefore, must address all of the actors who contributed to discriminatory lending. Going forward, fair lending rules must ensure that Wall Street pays a price when it makes discrimination profitable."
Isn't this a function of the Consumer Financial Protection Bureau? I know that the GOP has fought the creation of this agency tooth and nail in an attempt to protect Wall Street banks, but it is up and running and has made significant progress in dealing with these issues. I hope consumers are consulting with this agency before they "sign on the dotted line."