Alternative headlines:
Community Organizers Sue Businesses for Believing Community Organizers' Propaganda
Government Forces Banks to Make Bad Loads to Minorities; Minorities Hardest Hit
This is what Happens When Government Tells you how to run your Business
Remember the good old days when banks were allowed to decide for themselves who to lend to? They would consider old-fashioned factors like the amount of the down payment, the borrowers' employment history, credit scores and otherwise come to a conservative expectation of the future profitability of a given loan. And they profited. And taxpayers didn't have to bail them out.
Enter the community organizers. Hey, wasn't our President-Elect a community organizer? From Moonbattery:
ACORN helped cause the crisis in the first place:
ACORN recognized very early the opportunity presented by the Community Reinvestment Act (CRA) of 1977. As Stanley Kurtz has reported, ACORN proudly touted "affirmative action" lending, and pressured banks to make subprime loans. Madeline Talbott, a Chicago ACORN leader, boasted of "dragging banks kicking and screaming" into dubious loans. And, as Sol Stern reported in City Journal, ACORN also found a remunerative niche as an "adviser" to banks seeking regulatory approval.
Guess which famous "community organizer" worked for ACORN for years?
ACORN attracted Barack Obama in his youthful community-organizing days. Madeline Talbott hired him to train her staff — the very people who would later descend on Chicago's banks as CRA shakedown artists. The Democratic nominee later funneled money to the group through the Woods Fund, on whose board he sat, and through the Chicago Annenberg Challenge, ditto. Mr. Obama was not just sympathetic — he was an ACORN fellow traveler.
ACORN, you will recall, is an association of community organizers. Banks were forced to either make loans to these bad risk borrowers, or risk being accused of racism and sued for red-lining. Typical thug-tactics used by leftists to achieve their socialist ends.
So, after combining with Congress to force banks to make bad loans to people on the basis of the color of their skin, you would think the community organizers would be happy.
In what is apparently the first legal action of its kind, an association of community-based organizations has filed a federal civil rights complaint against two of the three largest Wall Street rating firms, charging that their inflated ratings on subprime mortgage bonds disproportionately caused financial harm to African American and Latino home buyers across the country.
The complaint, filed by the National Community Reinvestment Coalition, alleges that Moody's Investors Service and Fitch Ratings enriched themselves by assigning high ratings to bonds backed by mortgages "that were designed to fail" because of "unfair payment terms and insufficient borrower income levels."
The firms "knew or should have known" that subprime loans disproportionately were marketed to minority consumers -- a process known as "reverse redlining" -- and that those borrowers would ultimately default and go into foreclosure at high rates, according to the coalition's complaint.
Yep, you read that correctly. Shockingly, after forcing banks to lend to bad-risk borrowers on the basis of their skin color, the result is that minority home buyers were hardest hit by the housing market implosion. Shocking I say! You would think someone would have known that these borrowers were bad risks. Oh yeah, someone did. They were called bankers, back when they were allowed to make their own decisions based on their own silly criteria like profitability.
And yes, another group of community organizers is now suing Wall Street ratings firms for believing the propaganda passed out by the other community organizers. The ratings firms were supposed to know that government had combined with community organizers to force banks to make horrible loans, and should have proceeded to rate those loans as worthless. But government and the community organizers had told them that, no, these were perfectly good loans that were now being made because banks weren't allowed to be racists anymore. And now, after these loans failed, the banks are racists for "reverse-redlining."
My head is spinning.
The best part of this suit is that the community organizers are effectively saying that the community organizers forced banks to make loans for mortgages "that were designed to fail" because of "unfair payment terms and insufficient borrower income levels."
So the community organizers got what they wanted. And now they are suing.
This is type of experience and training Barack Obama received for the new job he will be taking on in January. At least it isn't an important job that could impact the country. What's that? He's gonna be the freaking President of The United States? Uh-oh. This might not go well.
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