Morgan Stanley sued for subprime discrimination on blacks.

The American Civil Liberties Union Monday filed a class action lawsuit against investment bank Morgan Stanley alleging racial discrimination in subprime mortgage practices. “The class-action lawsuit, submitted in a federal court a stones throw from the New York Stock Exchange, alleges that Morgan Stanley [via now-bankrupt financial agent, New Century Mortgage Company] intentionally steered blacks in the Detroit metropolitan region into subprime loans. Blacks who were credit-worthy and qualified for traditional mortgages were caught up in Morgan Stanley’s biased dragnet.” Of the 9 million foreclosures since 2007, four out of 10 have been against people of color. Both Bank of America and Wells Fargo have settled discrimination lawsuits over steering black and Latino borrowers into subprime loans.

... if a realtor helped minority families move into white neighborhoods, it was "blockbusting."

And when the agents told people "the neighborhood's changing, better move now before values go down" it was called "panic peddling".

I worked in the Mortgage industry in the late 1990’s. I vividly remember several lawsuits in Ohio, all originating in Cleveland, that were filed by this organization that at the time I had never heard of before. The name of this heretofore unheard of organization was ACORN. They were alleging that banks and lenders were discriminating against low income borrowers and credit challenged borrowers.

I remember a couple of things that changed after the lawsuits. One, lenders could no longer turn down a loan from someone who recieved unemployment compensation, child support as their primary income, or welfare. Two, many private lenders stopped originating loans in Cuyahoga County.

Oh, and lead counsel for two of these lawsuits representing ACORN, none other than one Barrack Hussein Obama. So, he sued the lenders to make them give out these loans as a lawyer for ACORN, and now as President he is suing them again for complying and actually lending the money. And he is getting away with it. Only in America.

Liberal logic: if you don’t loan to blacks, you’re being discriminatory in your loan practices. We will punish you if you don’t loan to blacks by harrassing you with regulators. Then, when you do loan to blacks, many of whom we all know cannot repay their loans, we’re going to sue you into oblivion. And one more thing, we are so enthusiastic about this that we’ll back up those bad loans with taxpayer money. Does that about sum it up?

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