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

17 Answers

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  • 1 decade ago
    Favorite Answer

    this type of legal action against these financial institutions started the snowball

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  • 1 decade ago

    How could this have caused the meltdown when the case was dismissed on May 12th 1998? Maybe you should read what you post. Try reading this and checking it out. This could have been the beginning to this end.

    The Keating Five were five United States Senators accused of corruption in 1989, igniting a major political scandal as part of the larger Savings and Loan crisis of the late 1980s and early 1990s. The five senators, Alan Cranston (D-CA), Dennis DeConcini (D-AZ), John Glenn (D-OH), John McCain(R-AZ), and Donald W. Riegle (D-MI), were accused of improperly aiding Charles H. Keating, Jr.,chairman of the failed Lincoln Savings and Loan Association, which was the target of an investigation by the Federal Home Loan Bank Board (FHLBB).

    The result of the collapse of Lincoln Savings and Loan was that 21,000 mostly elderly investors lost their life savings....McCain was further criticized for accepting personal gifts and holidays from Keating, accepting free use of Keating's private jet, as well as accepting hundreds of thousands of dollars of campaign finance from Keating.

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  • 1 decade ago

    This was 14 YEARS AGO!!! This has absolutely nothing to do with the current crisis.

    And these rules were even perversely used later on by lenders to practice predatory lending, which is loaning people money you know they can't pay back so you can confiscate their house and sell it at a profit!!!

    That is what congress and McCain were meeting about a few years ago - not derugulation! This whole thing has been misrepresented by conservatives in a very shameful manner.

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  • Anonymous
    1 decade ago

    He did it to make money and to have it filter to his contributions. Name one other person in the senate for two years who can run for president be unknown and have people contribute about 400 million plus to your campain and be black. Hillary says. Give me a break!

    Source(s): politics
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  • 1 decade ago

    so I guess it is BARRACK Hussein OBAMA'S fault that the bank became predatory lenders . They were Force by people like OBAMA and FRANKS to lower the standards. There's a change you can believe in.

    Source(s): OBAMA ENDORSEMENTS: http://www.eyeblast.tv/public/video.aspx?RsrcID=20... THE NEW BLACK PANTHER PARTY MARXISTS/SOCIALISTS/ COMMUNISTS FOR OBAMA INTERNATIONAL MUSLIM LEADER IMAM MOHAMMED COMMUNIST PARTY USA & ITS LEADER/CHAIRMAN SAM WEBB HAMAS LOUIS FARRAKHAN & THE NATION OF ISLAM DEMOCRATIC SOCIALISTS OF AMERICA - WHO HAVE ENDORSED OBAMA SINCE 1996 THE MUSLIM AMERICAN SOCIETY TERRORIST FUNDRAISER HATEM EL HADY - WHO IS NOW A FUNDRAISER FOR OBAMA'S CAMPAIGN. IN 02/06 EL HADY'S OFFICE WAS RAIDED & CLOSED BY US FEDERAL AGENT'S WHO SEIZED TERRORIST FUNDS FROM EL HADY WHO WAS ALSO IMPLICATED IN UK TERRORIST BOMBINGS WILLIAM AYERS TONY REZKO QADHAFI FIDEL CASTRO CYNTHIA K MILLER - WHO IS A MEMBER OF THE NATION OF ISLAM & WAS THE OFFICIAL TREASURER OF OBAMA'S US SENATE CAMPAIGN " MUSLIMSFOROBAMA08.COM " SOCIALIST PARTY USA Source(s): ALL OF OBAMA'S ABOVE ENDORSEMENTS CAN BE VERIFIED IF YOU GOOGLE THEM
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  • 1 decade ago

    Because he wanted everyone to own a home. Whether they could pay for it or not. Whether they had a job or not. No credit-no problem. Bad credit- no problem. Just like all the democrats who caused this problem and refused to even vote when McCain asked for regulation!

    to Linda C- the case was dismissed when the parties voluntarily settled- part of the settlement was to make sub-prime loans available.

    Source(s): 22 years in the mortgage business. Not doing sub-prime loans.
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  • 1 decade ago

    So, you want us to believe that Senator Obama, was the cause of the collapse of these banks? You had better tell McCain, because I don't think he know, and he could use all the firing power he can get, and he hasn't used that one yet.

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  • 1 decade ago

    Honestly, it seems as though you didn't even read your facts.

    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.

    That in no way states that these people didn't have enough money to get a home. This is no way proves that he helped ruin the economy. It just shows that he fought for minority applicants to get homes, and that the alleged bank was rejecting minority applicants that had their finances in order.

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  • 1 decade ago

    He likes to help minorities and poor people get into houses they can't afford at the expense of the taxpayers who work to pay their mortgage on time.

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  • Anonymous
    1 decade ago

    Really. Really. I gotta vote again.

    Surely Wall Street did no wrong. Tell me they didn't lend any money. Destroys my faith in the Citibank policies. Oh NO!

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