Thursday, May 12, 2011

Obama Administration Sets Up Next Housing Cycle Crash

BusinessWeek is reporting the Obama administration is putting pressure on banks to make more loans in high risk areas of the country. High risk loans are a major cause of the bank bailout and subsequent housing market crash we are now struggling to recover from. People who don't learn from their mistakes are fools.
Community activists in St. Louis became concerned a couple of years ago that local banks weren't offering credit to the city's poor and African American residents. So they formed a group called the St. Louis Equal Housing and Community Reinvestment Alliance and began writing complaint letters to federal regulators.

Apparently, someone in Washington took notice. The Federal Reserve has cited one of the group's targets, Midwest BankCentre, a small bank that has been operating in St. Louis's predominantly white, middle-class suburbs for over a century, for failing to issue home mortgages or open branches in disadvantaged areas. Although executives at the bank say they don't discriminate, Midwest BankCentre's latest annual report says it is in the process of negotiating a settlement with the U.S. Justice Dept. over its lending practices.

1 comment:

Interested Bystander said...

Hey All,

They just do NOT learn from their mistakes, do they?

What a bunch of idiots.