Los Angeles sues Wells Fargo, Citigroup, and BofA for predatory lending

The LA Times reports:

The city of Los Angeles accused banking giants Wells Fargo & Co. and Citigroup Inc. of a “continuous pattern and practice” of mortgage discrimination that led to a wave of foreclosures, reduced property tax revenue and increased costs for city services.

In twin lawsuits filed in U.S. District Court, the city alleged that both banks engaged in predatory lending practices and redlining that saddled minorities with loans they couldn’t afford and resulted in a disproportionately high number of foreclosures in their neighborhoods compared with white neighborhoods.

The cases are City of Los Angeles v. Wells Fargo, No. 13-cv-09007, and City of Los Angeles v. Citigroup Inc., 13-cv-09009, both in the U.S. District Court for the Central District of California.

The suits were filed last Thursday. Then on Friday, Los Angeles sued Bank of America, also for mortgage discrimination.



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