The National Community Reinvestment Coalition, a "community-based organization," is suing Wall Street ratings services for approving bonds backed by home loans to African American and Latino home purchasers with "insufficient borrower income levels."
The firms "knew or should have known" that subprime loans disproportionately were marketed to minority consumers -- a process known as "reverse redlining" -- and that those borrowers would ultimately default and go into foreclosure at high rates, according to the coalition's complaint.
Hmmm. Didn't community-based organizations push for exactly this sort of reverse-redlining?
03 December 2008
How Dare You Do What I Ask!
Stop giving me what I want: