Anonymous
Anonymous asked in Politics & GovernmentElections · 1 decade ago

why did Obama sue CitiBank to make them give loan to unqualified mortgage applicants resulting in the meltdown?

Case Name

Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance

Docket / Court 94 C 4094 ( N.D. Ill. ) FH-IL-0011

State/Territory Illinois

Case Summary

Plaintiffs filed their class action lawsuit on July 6, 1994, alleging that Citibank had engaged in redlining practices in the Chicago metropolitan area in violation of the Equal Credit Opportunity Act (ECOA), 15 U.S.C. 1691; the Fair Housing Act, 42 U.S.C. 3601-3619; the Thirteenth Amendment to the U.S. Constitution; and 42 U.S.C. 1981, 1982. Plaintiffs alleged that the Defendant-bank rejected loan applications of minority applicants while approving loan applications filed by white applicants with similar financial characteristics and credit histories. Plaintiffs sought injunctive relief, actual damages, and punitive damages.

U.S. District Court Judge Ruben Castillo certified the Plaintiffs’ suit as a class action on June 30, 1995. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 322 (N.D. Ill. 1995). Also on June 30, Judge Castillo granted Plaintiffs’ motion to compel discovery of a sample of Defendant-bank’s loan application files. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 338 (N.D. Ill. 1995).

The parties voluntarily dismissed the case on May 12, 1998, pursuant to a settlement agreement.

Plaintiff’s Lawyers

Obama, Barack H. (Illinois)

FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000

Alexis, Hilary I. (Illinois)

FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000

Childers, Michael Allen (Illinois)

FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000

Clayton, Fay (Illinois)

FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000

Cummings, Jeffrey Irvine (Illinois)

FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000

Love, Sara Norris (Virginia)

FH-IL-0011-9000

Miner, Judson Hirsch (Illinois)

FH-IL-0011-7500 | FH-IL-0011-9000

Wickert, John Henry (Illinois)

FH-IL-0011-9000

11 Answers

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  • Dr.T
    Lv 5
    1 decade ago
    Favorite Answer

    Good find. Then he became attorney for ACORN.

    Democrats cheered when Enron and Worldcom executives were prosecuted for lying about their financial records.

    Why hasn't Barney Frank, Christopher Dodd, and the heads of Fannie Mae and Freddie Mac been prosecuted for lying about their financial records ??

    And the problems with Freddie and Fannie dwarf the size of the problems at Enron and other corporations.

    Double standard? Barney Frank should be in handcuffs, and Barrack was one of the attorneys pushing for these ridiculous no-doc loans for african americans in chicago.

    Expect some Obama supporters to complain about your question, and don't be surprised if Yahoo censors have it removed. That's what they do to some of my postings.

    The truth here is often unwelcome.

  • 1 decade ago

    Did any one read this post presented. No where in it does it state that. This was a discrimination case, which under the Constitution, is illegal.

    "Definition: Redlining is against the law. It is a discriminatory practice, involving lenders which refuse to lend money or extend credit to borrowers in certain "struggling" areas of town. It is against the law to discriminate against borrowers based on race or income level, among other factors. Redlining became known as such because lenders would draw a red line around a neighborhood on a map, often targeting areas with a high concentration of minorities, and then refusing to lend in those areas because they considered the risk too high. Even though it is now against the law, some lenders today are still accused of redlining".

    http://homebuying.about.com/od/glossaryqr/g/053107...

    A sad state of affairs that the general public has to point fingers at one single individual as being the cause of our economic situation, considering that it has been going on for many years now and the majority of the public wasn't paying attention....

  • 1 decade ago

    The blame is spread well before Obama. Start with Clinton

    # The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap.

    # Home buyers, who took advantage of easy credit to bid up the prices of homes excessively.

    # Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses.

    # Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes.

    # The Clinton administration, which pushed for less stringent credit and downpayment requirements for working- and middle-class families.

    # Mortgage brokers, who offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments, but exploding interest rates.

    # Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages.

    # Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as collateral.

    # The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market.

    # An obscure accounting rule called mark-to-market, which can have the paradoxical result of making assets be worth less on paper than they are in reality during times of panic.

    # Collective delusion, or a belief on the part of all parties that home prices would keep rising forever, no matter how high or how fast they had already gone up.

    9 years early Clinton and that housing secretary of his pushed fannie mae and mac into those risky loans

  • Anonymous
    4 years ago

    How ought to this have led to the meltdown while the case grew to become into brushed off on could twelfth 1998? perhaps you should examine what you submit. attempt analyzing this and checking it out. this could have been the putting out to this end. The Keating 5 have been 5 usa Senators accused of corruption in 1989, igniting a significant political scandal as area of the better low value rates and very own loan disaster of the previous due Eighties and early 1890s. The 5 senators, Alan Cranston (D-CA), Dennis DeConcini (D-AZ), John Glenn (D-OH), John McCain(R-AZ), and Donald W. Riegle (D-MI), have been accused of improperly assisting Charles H. Keating, Jr.,chairman of the failed Lincoln low value rates and very own loan affiliation, which grew to become into the objective of an study via the Federal residing house very own loan economic business enterprise Board (FHLBB). the end results of the fall down of Lincoln low value rates and very own loan grew to become into that 21,000 as a rule elderly traders lost their existence low value rates....McCain grew to become into greater criticized for accepting very own presents and holiday trips from Keating, accepting loose use of Keating's inner maximum jet, besides as accepting thousands of thousands of greenbacks of marketing campaign finance from Keating.

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  • 1 decade ago

    Take a moment to think......have you ever done something that you through was a good idea at the time, but unbeknowest to you years later you found that it wasn't such a good deed after all. Now ask yourself what makes Senator Obama less vulnerable than the rest of us including you. We don't always make the right decision all the time, now do we?

  • 1 decade ago

    Very simple Obama is in big with Eghorn and La Rassa who favor giving Loans to people who are illegal and wo have no business getting in to a house because they can't afford the payments.In return they have giving him big Money for his Campaign and they fight everyone who oposes them and that is the kind of guy that wants to run this country and tell us what to do.

  • Anonymous
    1 decade ago

    He didn't. You didn't even read the information you supplied as "proof".

    You also don't even know what "redlining" is. It's discrimination, which is illegal. All they were asking for was that black applicants with the same financial status as whites be treated the same.

    Stop lying.

    He never worked for ACORN -- he worked for Project Vote. Different organizations.

  • Anonymous
    1 decade ago

    Yes but they don't care to them it was like Jesus throwing the money changers out of the temple He is their Savior and can do no wrong

  • 1 decade ago

    Well, I expect he got undying devotion for it.. you see, Mr. Clean is not above a few well placed phone calls.. to tamper with votes.. and a few threats to get loans so he will have willing voters.

    Tricky dick had nothing on BackDoor Barrach!!!

  • 1 decade ago

    Shh. You're not supposed to know those kind of things.

    Source(s): Ignorance is bliss.
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