promotion image of download ymail app
Promoted
RJC
Lv 7
RJC asked in News & EventsCurrent Events · 6 years ago

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

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 Alexis, Hilary I. (Illinois)

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

Childers, Michael Allen (Illinois

4 Answers

Relevance
  • 6 years ago
    Favorite 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.

    • Commenter avatarLogin to reply the answers
  • Anonymous
    6 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.

    • Commenter avatarLogin to reply the answers
  • 6 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.

    • Commenter avatarLogin to reply the answers
  • 6 years ago

    I suppose he did not foresee or did not care about the consequences...

    • Commenter avatarLogin to reply the answers
Still have questions? Get your answers by asking now.