Post New Thread Reply
 
Thread Tools Share
Old 05-24-2015, 06:49 PM   #1
1headhunter23
Senior Member
 
1headhunter23's Avatar
 
Join Date: Nov 2014
Location: independent UK
Posts: 2,465
Rep Power: 20
1headhunter23 has a brilliant future1headhunter23 has a brilliant future1headhunter23 has a brilliant future1headhunter23 has a brilliant future1headhunter23 has a brilliant future1headhunter23 has a brilliant future1headhunter23 has a brilliant future1headhunter23 has a brilliant future1headhunter23 has a brilliant future1headhunter23 has a brilliant future1headhunter23 has a brilliant future
Default Banks hope to benefit from high court ruling on discrimination

Banks hope to benefit from high court ruling on discrimination,

Click the image to open in full size.
The Supreme Court stands in Washington May 18, 2015.


Reuters/Joshua Roberts





If the state of Texas prevails in a civil rights case about to be decided by the U.S. Supreme Court, landlords and developers will have an easier time defending themselves in housing discrimination lawsuits.


But the biggest beneficiary of a win for Texas could well be Wall Street.
The case alleges that the way Texas allocates low-income housing credits violates the 1968 Fair Housing Act, an issue with little direct connection to banking. But trade groups representing banks and other financial services companies hope that the high court will set a legal precedent in its ruling that could also be used to defend against lending discrimination lawsuits.
The U.S. Chamber of Commerce and at least a dozen other business groups have submitted friend-of-the-court briefs supporting Texas's position in the case.


At the heart of the dispute is a legal theory known as "disparate impact," which has long been criticized by business groups. The theory allows minorities and others, including the disabled and the elderly, to prove illegal discrimination simply by showing that a practice has the effect of discriminating against them, even if they cannot prove intentional discrimination.



In the pending case, Texas Dept. of Housing and Community Affairs v. The Inclusive Communities Project, civil rights groups are alleging that the state's allocation of low-income housing credits discriminates against minorities. Texas has countered that it awards credits without regard to race, and that the Fair Housing Act should apply only to cases of intentional discrimination.



Business groups see parallels between the housing law and the similarly worded Equal Credit Opportunity Act of 1974, which empowers the U.S. Consumer Financial Protection Bureau to bring lending discrimination actions against financial services companies. The Fair Housing Act covers home mortgages but not other types of lending.


A sweeping ruling in the case, which could be decided as soon as next week, would provide a weapon for business groups to attack the consumer bureau.



Jess Sharp, who works on lending issues at the Chamber of Commerce, said that if the court throws out disparate impact theory under the Fair Housing Act, it severely undercuts" the consumer bureau's argument that it can be used to enforce the fair lending law.
A spokesman for the bureau declined to comment.
DEPLOYED FOR DECADES


Disparate impact theory has been widely employed for decades under both the housing and lending laws to extract huge payouts from banks, developers and other businesses and require them to change their conduct. Proving disparate impact is much easier than showing intentional discrimination.



The U.S. Justice Department, citing both the housing and the lending laws, used the disparate impact theory in cases arising from the 2008 housing crash. In 2012, Wells Fargo agreed to a $175 million settlement over claims it discriminated against black and Hispanic customers by, among other things, steering them toward subprime mortgages.



The Consumer Financial Protection Bureau, relying on the Equal Credit Opportunity Act, recently used disparate impact theory in its series of probes into auto lending pricing polices. The bureau said various lenders unfairly calculated interest rates on car loans, leading Hispanics and Asians to pay more than whites. In December 2013, Ally Financial Inc agreed to pay $98 million to settle one investigation.


The Supreme Court has not weighed in on the use of disparate impact theory under either law.


The Mortgage Bankers Association and other lenders said in a friend of the court brief backing Texas filed in November that they abhor discrimination but that disparate impact theory "allows challenges to legitimate business practices."


The banks say they use neutral criteria when assessing risk, and while that might result in certain groups being treated more favorably, it does not mean the practice is unfair.



Civil rights groups such as the National Association for the Advancement of Colored People say the business community is overstating the economic burden of disparate impact theory.



When the Texas case was argued on Jan. 21, the nine justices appeared closely divided along ideological lines, with liberals voicing support for the theory and conservatives opposed. Based on the questions asked from the bench, conservative Antonin Scalia could be the deciding vote.
__________________
KNOWLEDGE IS POWER AND POWER WILL BE THE KEY TO THE SURVIVAL OF THE WHITE RACE


1headhunter23 is offline   Reply With Quote
Post New Thread Reply

Bookmarks

Tags
banks, court, discrimination, ruling


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
16 Ways the Supreme Court Built the Police State and Destroyed Your Rights Fred O'Malley Discussing Today's News and Politics 0 11-08-2014 01:05 PM
Federal Court Issues Bold Ruling for Traditional Marriage Fred O'Malley Discussing Today's News and Politics 0 11-07-2014 11:16 PM
North Carolina: Illegal Aliens Charged with 250 Counts of Child Molestation in One Month Fred O'Malley Discussing Today's News and Politics 0 05-01-2014 06:56 PM
We Have Been Sold Out By Domestic Enemies the Courts Fred O'Malley Discussing Today's News and Politics 0 03-29-2014 11:33 PM
JFK Vs The Federal Reserve Randolph Dilloway General Discussion of White Issues 0 10-31-2013 03:57 PM

 

All times are GMT. The time now is 02:48 AM.
© White Nations™ . All rights reserved.
No part of White Nations Forum may be reproduced without consent.
Design by Creative IT World
Creator Web Team: Creative IT World

Blue Eyed Devils - Beating & Kicking (MP3 Audio)
WN Forum Comment, Video & Lyrics