SCOTUS clears the way for cities to sue banks over foreclosure crisis

[de officiis]

Supreme Court clears the way for cities, including L.A., to sue banks over foreclosure crisis

The Supreme Court expanded the reach of federal housing law Monday, ruling that cities ... can sue major banks for discriminatory lending practices that hurt low-income neighborhoods during the Great Recession.

The decision gives city leaders a potentially powerful weapon against lenders, including those who were accused of predatory practices that triggered the foreclosure crisis after 2008.

Until now, these legal claims faced an apparent obstacle. The Fair Housing Act forbids racial discrimination against “any person.” Lawyers for the banks said the law protected only people who suffered discrimination, not cities.

But by a 5-3 vote, the justices said cities can be an “aggrieved person” who can sue over the impact of housing discrimination on the city’s finances. ...
...
But Monday’s ruling was only a partial victory for the cities.

The justices said they were not convinced that discriminatory lending “caused” the city’s loss in property tax revenues.

... for the city to win damages, it must show some “direct relation” between the alleged predatory lending and its effect on the city’s coffers.

So the cities can possibly recover against the banks for the '08 fiasco. Does this mean our ATM fees will go up again over their current ridiculously absurd levels?

[clubgop]

... for the city to win damages, it must show some “direct relation” between the alleged predatory lending and its effect on the city’s coffers.

That is going to be quite a burden. Without these loans most of these properties would be vacant or have lower values to begin with.

[heydaralon]

The way you get around those atm fees is to go into a grocery store, buy something that costs like .25 a banana or something, and then ask for cashback. I've been using this lifehack for years now.

[SuburbanFarmer]

I'm all for suing the banks, but I doubt anything actually comes from this. They're failed businesses that should have been allowed to collapse in '08.

[Speaker to Animals]

Seems like a municipal money grab. I guarantee none of the people defrauded of their homes in that manufactured crisis will see a dime of the equity they lost. The cities will get the money and use it to fund the enormous pensions and benefits for their union workers.

[PartyOf5]

One group of thieves trying to steal from another group of thieves.

[Ph64]

The way you get around those atm fees is to go into a grocery store, buy something that costs like .25 a banana or something, and then ask for cashback. I've been using this lifehack for years now.

You've already lost when you "loaned" them your money by depositing it... They're making 22% letiing people use it for their credit cards, and pay you .01% for your money.

[Ex-California]

I'm all for suing the banks, but I doubt anything actually comes from this. They're failed businesses that should have been allowed to collapse in '08.

I won't be happy until there's a guillotine in place of the bull on Wall Street with a 20' pile of heads next to it

[heydaralon]

The way you get around those atm fees is to go into a grocery store, buy something that costs like .25 a banana or something, and then ask for cashback. I've been using this lifehack for years now.

You've already lost when you "loaned" them your money by depositing it... They're making 22% letiing people use it for their credit cards, and pay you .01% for your money.

Fuck that I'm setting up my own bank. All I need now is to get loan from a bank for the initial capital.

[Speaker to Animals]

I have been thinking about how difficult it might be to start up a microfinance business. The way things are going, banks already priced themselves out of most Americans business.

Payday check cashers and lenders serve a purpose, but what a lot of people seem to need are small loans (like less than $200 and even down to about $50). Charge a flat fee for dealing with the books and running the business, and see where it goes.