Why was Obama on a legal team that forced banks to make toxic loans under the CRA guidelines?
Obama Sued Citibank Under CRA to Force it to Make Bad Loans
Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance
Docket / Court 94 C 4094 ( N.D. Ill. ) FH-IL-0011
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 Alexis, Hilary I. (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Childers, Michael Allen (Illinois
- QuiteNewHereLv 76 years agoFavorite Answer
The dumocrats at that time had the project to allow all americans to own homes(realize the American Dream of owning a house with a picket fence) whether they qualified for loans or not. In the short term, it created a rush of home construction and other building projects. For a short moment therefore, plenty of jobs were created which revitalized the economy. The other banks and loan company you may remember was the Fannie May and the rest of them. That growth was unsustainable and eventually led to the bubble burst that led many of the same new homeowners to default on their mortgages then sell their homes.through foreclosure.
That was the great economic collapse due to credit and derivatives.
Many of the banks did not want to participate but were forced to because of "pressures". This appears as one of those pressures.
- Anonymous6 years ago
No one forced the banks. They pushed for the changes and hopped on board in a heartbeat the moment they figured out they could scam the system.
- xpatinasiaLv 76 years ago
Your premise is false. No one was forced to make loans.
"Obama Sued Citibank Under CRA to Force it to Make Bad Loans"
That's not true.
- The First DragonLv 76 years ago
I suppose he did not foresee or did not care about the consequences...