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MEMPHIS SUES WELLS FARGO FOR ETHNIC DISCRIMINATION
NY Times - The mayor of Memphis, A C Wharton Jr.. . . and other city and county officials filed a lawsuit accusing one of the nation's largest banks, Wells Fargo, of singling out black homeowners for high-interest subprime mortgages.
The lawsuit, filed in federal court in Tennessee, marshaled a raft of statistics to argue that Wells Fargo offered one lending reality for whites and another for blacks. In Shelby County, which includes Memphis, one of every eight Wells Fargo loans in predominantly black neighborhoods resulted in foreclosure, compared with only one in 59 such loans in white neighborhoods, the lawsuit said.
Such charges, if proven, amount to reverse redlining - marketing expensive loan products specifically to black customers.
"You drive through our neighborhoods and it’s just palpable - you can see a strong emerging black homeowning community that’s gone," Mr. Wharton said in an interview. "The clarity of the patterns just stand out like a sore thumb."
The lawsuit is one of several discrimination suits filed against Wells Fargo in the past two years, as city and state officials argue that the bank must take responsibility for the social and economic effects of a decade of loose - some federal agencies have argued irresponsible -lending practices. In Baltimore, officials say that Wells Fargo's lending practices tipped hundreds of homeowners into foreclosure and cost the city millions of dollars in taxes.
The lawsuit, filed in federal court in Tennessee, marshaled a raft of statistics to argue that Wells Fargo offered one lending reality for whites and another for blacks. In Shelby County, which includes Memphis, one of every eight Wells Fargo loans in predominantly black neighborhoods resulted in foreclosure, compared with only one in 59 such loans in white neighborhoods, the lawsuit said.
Such charges, if proven, amount to reverse redlining - marketing expensive loan products specifically to black customers.
"You drive through our neighborhoods and it’s just palpable - you can see a strong emerging black homeowning community that’s gone," Mr. Wharton said in an interview. "The clarity of the patterns just stand out like a sore thumb."
The lawsuit is one of several discrimination suits filed against Wells Fargo in the past two years, as city and state officials argue that the bank must take responsibility for the social and economic effects of a decade of loose - some federal agencies have argued irresponsible -lending practices. In Baltimore, officials say that Wells Fargo's lending practices tipped hundreds of homeowners into foreclosure and cost the city millions of dollars in taxes.
Labels: DISCRIMINATION, ETHNIC, HOUSING
2 Comments:
Let's see. A big bank is pushed by gov't into loaning money to people who are poor credit risks. The gov't tells the bank: Don't worry, we'll cover your losses through Fannie and Freddie and the FHA. A lot of these people default. Let's blame it on racism.
You're just fooling yourself if you think banks aren't racist. Between them and the police it really is more difficult to be black in america. If you don't agree, you should really start paying attention.
When exactly did the government push the banks to do anything? The bankers control the government, not the other way around. They get zero victim status here.
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