Civil rights complaint targets Wall Street rating firms

LA Times ^ | Nov 30, 2008 | Kenneth R. Harney

[Docs Galore]

In what is apparently the first legal action of its kind, an association of community-based organizations has filed a federal civil rights complaint against two of the three largest Wall Street rating firms, charging that their inflated ratings on subprime mortgage bonds disproportionately caused financial harm to African American and Latino home buyers across the country.

[Dick Bachert]

These — these — IDIOTS are going after secondary targets.

Yes, many of them may have gamed the system, bundling this “junk” into “derivatives” even PhDs in economics didn’t understand.

But if that “system” hadn’t been created, the gaming would not have even been possible. Friedman conveniently failed to mention that the system was a creature of the 1977 Jimmy Carter sponsored “Community Reinvestment Act.”

Allegedly designed to make the American Dream of home ownership available to all, it was expanded in the Clinton years to include even those with virtually no prospect of repaying. Lenders who refused to “get with the program” were threatened with loss of their charters.

Until it unraveled, it was a brilliant Democrat vote-buying scheme.

And as it unraveled, Barney Frank, Chris Dodd, et al stood silently by and watched.

THOSE PEOPLE — THE KNOW-IT-ALL UTOPIAN POLITICAL HACKS — are the PRIMARY TARGETS.

[icwhatudo]

So they sue to force them to loan to them, when it was obvious many could not make the payments....and now they are suing them because....they should have know they could not make the payments?

mmmmmk

[An Old Man]

That is great news! The “African American and Latinos” are now getting enough at the trough they can afford to purchase derivatives.

[Ann Archy]

Community Organizer ALERT!!!

[17th Miss Regt]

Dear God. They are claiming that if the loans had been 'equitably' distributed the default rates for whites should be much higher. In that case, more loans to poor whites would have been made and fewer made to blacks and latinos. Then you would have had a lawsuit for not enough loans made to blacks and latinos.

Freepers, here is my challenge. How many other idiotic scenarios can we come up with related to this lawsuit?

[17th Miss Regt]

I know it an un-Christian thought, but can’t we feed the community organizers to the lions while we all sit around and watch? Perhaps on the public service TV channels?

[FormerACLUmember]

These are the VERY SAME sociopaths who created the laws mandating financial institutions to issue worthless subprime mortgages to vast numbers of people with no ability to pay them off.

The people wiuth subprime mortgages now have permanently ruined credit. The US (followed by the whole world) is now in a deep, deep recession thanks to the subprime disaster.

The corrupt “community-based organizations” have destroyed the very people they purport to help.

[Beagle8U]

There are too many blacks in prison because all their fathers,brothers, uncles, etc are in prison, which causes them to commit crimes, which sends more to prison, because...

Something like that?

[Altura Ct.]

I am not an animal!

Oops wrong movie.

I am not responsible for anything I do. The evil white man is!

[PoliticalDookie]

Is Wayne Brady gonna have to smack a...

[LostInBayport]

These are the VERY SAME sociopaths who created the laws mandating financial institutions to issue worthless subprime mortgages to vast numbers of people with no ability to pay them off.

Rule of thumb: If a member of a minority or liberally favored class suffers any harm of any nature, it is Somebody Else's Fault, because said minority or liberally favored classes have no ability or responsibility to look out for their own interests. It was America's fault they couldn't get into homes, now it is America's fault they are losing them. But don't worry: Congress and Obama will fix it! And you won't have to carry that troublesome wallet around anymore.

[darth]

The banks should counter-sue the borrowers who falsified income on their apps.

[ladyjane]

Isn’t it a federal crime to falsify a mortgage application? Or is it submitting a copy of a false income tax form?

[MissEdie]

I’m afraid to ask, with these nutjobs the scenarios we predict may come true. I’m just holding out hope there’s a judge involved in this who will throw it out.

[WesternPacific]

Just setting the stage for African American and Latino home buyers across the country to be included in the Bailout.

[darth]

Its both criminal and civil fraud.

[ladyjane]

Do you end up in a federal prison or in a state prison?

IIRC the man who owned swisher company (they make swisher sanitizing things) went to prison for incorrect information on a mortgage application.

[darth]

Dunno. However, we have just seen a situation where TRILLIONS OF DOLLARS in bonds were sold to banks and investors which were purported to the AAA rated. Trillions in obvious fraud and NOT ONE INDICTMENT HAVE WE SEEN!! BY FEDERALIZING THE BAILOUT INSTEAD OF LETTING THE INSOLVETS DECLARE BANKRUPTCY THE TAXPAYERS ARE LEFT HOLDING THE BAG. This is the biggest political scandal in decades. Sarah needs to run as the REFORM candidate to restore the rule of law to our markets.