Yesterday`s Associated Press account describing the NAACP`s class action lawsuit filed against two major banks [NAACP Says Bank Giants Steered Blacks To Bad Loans
, by Jesse Washington
, Associated Press
, March 13, 2009] in Los Angeles raises the idea that blacks were (yet again) victims of "racism"
because a disproportionate number of blacks were more likely to receive sub-prime loans. The lawsuit claims that Wells Fargo and HSBC were "forcing"
blacks to buy "sub-prime mortgages while whites with identical qualifications got lower rates."
The irony of the sub-prime problem seems lost on Melissa Murray, vice president of corporate communications for Wells Fargo & Co.: "We have never tolerated, and will never tolerate, discrimination in any way, shape or form in any of our business practices, products, or services,"
Perhaps if banks had discriminated, i.e. maintained strict standards
in scrutinizing the credit ratings of some of these borrowers then the banking industry may have avoided the brunt of the sub-prime meltdown.
What`s next a class-action lawsuit against furniture retailers claiming blacks were "forced"
to buy furniture on time?