of Subprime Meltdown Resonate from Coast to Coast as Regulators
Matthew R. Lee of Inner City Press on Wall Street: News Analysis
YORK, June 11 -- As subprime enabler Larry Summers prepares to
belatedly propose new regulation in a speech Friday in New York,
Thursday in the Midwest one of the beneficiaries of Summers'
deregulation and the meltdown, Wells Fargo, was protested by workers
and consumers. Employees of Quad City Die Casting employees in
Moline, Illinois called on Wells Fargo to restore financing before
the plant is closed and their jobs lost on July 11.
part of a nationwide day of action by NCRC members, from California
to New York. Meanwhile, Wells Fargo Bank in 2008 confined African
Americans to higher-cost loans above the Federally defined rate
spread 2.18 times more frequently than whites, according to South
Bronx - based Inner City Press / Fair Finance Watch in its April 2009
BofA and JPM Chase More Disparate By Race in US in 2008." Since that
study came out, Citigroup has been dropped from the Dow Jones index,
marking the end of one era and the beginning of another.
Bankers laugh as victims are evicted, regulators not
for example, according to organizers there, "sixty community
activists and a horde of media outlets gathered in North Hollywood
for a press conference in front of a four unit apartment building
from which tenants were being evicted. Lizette Guevara, a ten year
resident of the building, who with her children and a blind neighbor
are being evicted, spoke about her efforts to stay in her home...
Participants included community organizations and neighbors from the
nearby dog park."
In North Carolina,
numerous groups participated in a "Financial Freedom Fest Day of
Action." In the Detroit Council Chambers, it was standing room
only. In Indiana, they "talked about the foreclosure mitigation
counseling program and had 2 families there to give testimonials
about how they were helped by the program."
an event in Mississippi, a representative of the City Jackson
deplored "wrongful eviction of tenants
being told by landlords that they do not need to show up in court and
being offered to 'work something out' only to be evicted five days
And that was a
consistent theme from coast to coast: lower income people are bearing
the brunt of the financial crisis, and the bailouts are not helping
them, despite what Larry Summers says, despite some banks now paying
back the TARP.
When people feel that
their champion's in power, and
still they have no justice, what do they do? Watch this site.
* * *
Subprime Survivors Wells,
BofA and JPM Chase More Disparate By Race in US in 2008, Study During G-20
NEW YORK, April 2
the first study of the
just-released 2008 mortgage lending data, Fair
has found that the seeming survivors of the banking meltdown, Wells
of America and JPMorgan Chase, had worse disparities by race and
denials and higher-cost lending than the banks they acquired, Wachovia
Countrywide. Mortgage lending in the U.S. will become more and not less
disparate because of the emergency mergers and bailouts engineered by
regulators, the FFW study predicts.
Finance Watch notes that JPMorgan Chase's massive closing of branches
Washington Mutual will also make credit harder to come by, especially
neighborhoods. 2008 is the fifth year in
which the data distinguishes which loans are higher cost, over the
federally-defined rate spread of 3 percent over the yield on Treasury
securities of comparable duration on first lien loans, 5 percent on
Fargo Bank in 2008 confined African Americans to higher-cost loans
rate spread 2.18 times more frequently than whites, according to Fair
Watch. Wachovia Mortgage FSB, the largest lender of Wachovia which
acquired, had a lower disparity, at 1.46.
of America NA in 2008 confined Latinos to higher-cost loans above the
spread 1.51 times more frequently than whites, the data show.
which B of A acquired, had a lower disparity, at 1.22.
Chase was even more disparate to Latinos, confined them to higher-cost
2.10 times more frequently than whites, almost as pronounced as its
between African-Americans and whites, 2.26. Citigroup, perhaps due to
shrinking, some say dying, business had disparities of 1.90 for African
Americans and 1.23 for Latinos. For US Bancorp, the disparity for
Americans was 1.55 and for Latinos, 1.35.
Big bank execs before Congress: growing
disparities in lending not shown
banks the regulators favored in 2008, allowing emergency takeovers like
JPMorgan Chase's of Washington Mutual, Bank of America's of Countrywide
Merrill Lynch, and Wells Fargo's of Wachovia, were the most racial
lenders," states the Fair
Finance Watch report. "The regulators did not put any conditions on the
Program bailouts, for example allowing Chase to
close dozens of Washington
branches. As things are going, it will be worse and more disparate in
new administration in
Washington has yet to make any substantive change to this, and global
lending is hardly being discussed at the G-20 meeting in London."
lenders had worse denial rate
disparities in 2008 between Latinos and whites then between African
and whites, a change from previous years. Bank of America NA, for
denied applications by African Americans 1.44 times more frequently
whites, while denying Latinos fully 1.57 times more frequently than
Atlanta-based SunTrust in 2008 denied applications by African Americans
times more frequently than whites, while denying Latinos fully 1.78
frequently than whites.
required that the 2008 data be provided by April 1, following March 1
by Inner City Press. Some lenders did
not provide their data by the deadline. Regions Financial provided its
the deadline but only in paper format, on over 2000 pages, so that it
yet be computer-analyzed. Further studies will follow.
Click here for Inner City
Press March 12 DC (and AIG
12 debate on Sri Lanka http://bloggingheads.tv/diavlogs/17772?in=11:33&out=32:56
Click here for Inner City Press' Jan.
16, 2009 debate about Gaza
Click here for Inner City Press'
review-of-2008 UN Top Ten debate
Click here for Inner
City Press' December 24 debate on UN budget, Niger
Click here from Inner City Press'
December 12 debate on UN double standards
Click here for Inner
City Press' November 25 debate on Somalia, politics
and this October 17 debate, on
Security Council and Obama and the UN.
* * *
usually also available through Google
News and on Lexis-Nexis.
for a Reuters
AlertNet piece by this correspondent
about Uganda's Lord's Resistance Army. Click
for an earlier Reuters AlertNet piece about the Somali
Reconciliation Congress, and the UN's $200,000 contribution from an
undefined trust fund. Video
Office: S-453A, UN, NY 10017
earlier Inner City Press are listed here, and some are available
in the ProQuest service, and now on Lexis-Nexis.
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