The city is taking its case to the Supreme Court, asking to sue big banks that targeted mostly minority neighborhoods with predatory lending practices.
But that doesn’t mean the city can prevail without proving that the bank’s practices were directly responsible.
A majority of the court agreed that cities, not just individuals, can sue under the FHA.
Breyer recounted the arguments they make: Predatory lending practices in minority neighborhoods “led to a ‘concentration’ of ‘foreclosures and vacancies’ in those neighborhoods.
(Angel Valentin for The Washington Post)The Supreme Court ruled Monday that cities may sue big banks over allegedly discriminatory lending practices that they say led to urban blight, but added that they must meet higher standards to prove a direct relationship.
Trump says he’s actively considering breaking up big banks
The financials sector of the S&P 500 also took a hit, as did shares of several big banks including Morgan Stanley, Citi, and Goldman Sachs.
President Donald Trump said Monday he was contemplating breaking up the big Wall Street banks.
Other vocal supporters of Glass-Steagall’s reintroduction — a drawn-out and expensive process that could impact banks’ earnings potential — included Democratic Sen. Elizabeth Warren and Sen. Bernie Sanders.
The move would revive a version of the repealed Glass-Steagall Act that was passed in 1933, which required banks to separate commercial deposit banking from investment banking.
“I’m looking into that right now,” he told Bloomberg about bringing back the “old system” that separated consumer lending and investment banking.
The Supreme Court ruled Monday that cities can sue banks over predatory loans but will have a hard time winning.
(Photo: SAUL LOEB, AFP/Getty Images)WASHINGTON — The Supreme Court ruled Monday that cities can sue banks for discriminatory mortgage lending practices, but they must prove that predatory loans led to damages such as lost tax revenue and higher spending on municipal services.
If it can sue based on that scenario, he warned, 19,300 cities in the United States could file similar complaints.
The 5-3 ruling was written by Justice Stephen Breyer and backed by the court’s liberal justices and Chief Justice John Roberts.
Lawsuits in Baltimore and Memphis resulted in settlements between banks and those cities.