bank, discrimination, Los Angeles, National, News, Race, United States, Wells Fargo -

Wells Fargo Denied Request to Dismiss LA Discrimination Suit

bank, discrimination, Los Angeles, National, News, Race, United States, Wells Fargo -

Wells Fargo Denied Request to Dismiss LA Discrimination Suit

Wells FargoA federal judge has denied Wells Fargo’s latest bid to end a lawsuit brought by the Los Angeles city government accusing the bank of discriminatory lending that led to a wave of foreclosures among minority borrowers.

In a ruling made public on Monday, U.S. District Judge Otis Wright denied the San Francisco-based bank’s motion to have an appeals court decide whether Los Angeles has legal standing to recover damages under the U.S. Fair Housing Act.

Wells Fargo is one of four banks sued by Los Angeles for allegedly giving minorities mortgage loans they could not afford, causing defaults, lower property values and neighborhood blight.

The city is seeking damages for lost tax revenue and increased city expenses in affected neighborhoods.

The mortgage crisis in Los Angeles resulted in more than 200,000 foreclosures and lowered home values by an estimated $78 billion from 2008 to 2012, according to a report cited by the city in its lawsuit, filed in December.

Spokesmen and lawyers for Wells and Los Angeles did not immediately respond to a request for comment. Wells has previously contested the claims, saying it is prepared to defend its record as a responsible lender.

The city has also sued Citigroup, Bank of America and JPMorgan Chase to recover damages for alleged mortgage discrimination.

Wright in May had turned down Wells Fargo’s first motion to have the case dismissed. On Monday, he rebuffed the bank’s request for an immediate appeal of that decision, saying there were no substantial grounds for a difference of opinion about the law involved in the case.

Wells had argued that the city lacked standing to recover damages under the Fair Housing Act, which was passed to provide for fair housing. The city’s attempt to recover damages for injuries that happened to other persons was outside the act’s purpose, Wells had argued.



Leave a comment

Related Posts

Freshen Up Your Board Game Collection With This One-Day Amazon Sale
It’s not quite as jam-packed as Amazon’s Black Friday board game sale, but their 12 Days of Deals strategy game sale ...
Read More
It’s an Air Force Reserve Celebration Bowl rematch: Alcorn State vs. N.C. A&T Braves win SWAC title and and now bring their high-powered offense to bowl game
Well, it’s all set. The matchup for the Dec. 15 Air Force Reserve Celebration Bowl in Atlanta is actually a rematch: ...
Read More
HBO’s ‘Say Her Name’ has few answers about what happened to Sandra Bland But new documentary gives her a voice, even in death
The mother of Sandra Bland, the Illinois woman who committed suicide in a Texas jail after being hauled there for bac...
Read More
Meghan Markle ignores negative news, believes British press out to get her
Meghan Markle has developed a way of dealing with negative press: She doesn’t read it. After a tough week in the medi...
Read More