[dennisw]

The federal government provided $435 million to the bank, the nation's largest community development lending experiment.
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Was the $435 million flushed down the toilet or are the loans actually going to be paid off?

[Voltage]

Probably the toilet..albet a low flush ecology model.

[SAJ]

The former.

Now you know why red-lining exists.

[Tacis]

Come on, you know how this works. The managers were selected because of affirmative action or how well they were related to some black thug politician or pimp. He/she got in office and made dicey loans to homies, relatives, friendly gang members, girl friends, the pastor's referrals, and so on. It was government money, so it was free.

Salaries were good but the bennies were better. I bet there were cell 'phones, credit cards and company cars for a lot of employees. The top guys used limos. My bet is also that you'll find that the outfit bought sky box seats at all the LA sporting events and that the managers lived like emperors in the local community. It's all the usual story.

Commitments made by borrowers were seldom/never checked so as not to offend the borrower or the borrower's rabbi. The administrative follow up will be as race based. Most will get away scott free. However, there will be middle class black borrowers, a mailman, bus driver of school teacher, who treated this as a legitimate obligation and has been repaying their loan like they were supposed to. Should they default, it will be held against them. And, the black race pimps strike again.

[Torie]

I got a loan from something similar to this in Los Angeles (with a subsidized low interest rate), because they drew the map just a few blocks too far west and north. I put in central heating, copper plumbing, a deck, and some other stuff. The yuppies on my block all did the same. Several hot tubs were put in. I got a certificate of commendation from the mayor from taking the loan. And I paid it back. And the cost of the bureaucrats to make sure I was spending the money "wisely" only cost the City about 50% of the principle balance of the loan, so it helped employment too. Do you have a problem with that?