Capitol Fax.com - Your Illinois News Radar » AG Madigan efforts prompt record payout by racist bank
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
AG Madigan efforts prompt record payout by racist bank

Thursday, Dec 22, 2011

* Some folks out there have been trying to convince Americans that institutional racism is a thing of the distant past. Well, tell that to the folks who got mortgages through Countrywide

The Justice Department on Wednesday announced the largest residential fair-lending settlement in history, saying that Bank of America had agreed to pay $335 million to settle allegations that its Countrywide Financial unit discriminated against black and Hispanic borrowers during the housing boom.

A department investigation concluded that Countrywide loan officers and brokers charged higher fees and rates to more than 200,000 minority borrowers across the country than to white borrowers who posed the same credit risk. Countrywide also steered more than 10,000 minority borrowers into costly subprime mortgages when white borrowers with similar credit profiles received regular loans, it found.

* Illinois Attorney General Lisa Madigan deserves lots of credit for this settlement. Madigan filed suit last year against Bank of America, which had earlier bought Countrywide. Her suit was settled as part of the record-breaking deal

The Illinois lawsuit followed years of investigation into Countrywide’s lending practices.

Madigan issued a subpoena to Countrywide in March 2008. That followed a 2007 study by the Chicago Reporter of federally collected mortgage-lending data for the Chicago area. The study found that in 2006, Countrywide Financial Corp. sold higher-cost loans to 50.9 percent of its African-American borrowers and 33.8 percent of its Latino borrowers, while 19.5 percent of the company’s white borrowers received high-cost loans.

* The result for Illinoisans who were essentially robbed of their money

Either the borrowers were charged higher fees associated with obtaining a mortgage or they were steered into costlier, riskier subprime mortgages when they would have qualified for lower-cost, prime mortgages, Madigan said.

In the first case, Illinois borrowers could be eligible for a settlement ranging from several hundred dollars to more than $1,000, she said. In the second, borrowers qualifying for a settlement could receive about $10,000, she said.

Money can compensate, but shouldn’t somebody go to jail over this? I mean, you rob a bank and you’ll spend years in prison. But when a financial conglomerate robs you it throws money around and walks away.

Most banks, like the one I use, are actually doing what they’re supposed to be doing and following the law and helping build the economy. But some of these crooked banksters should be forced to do more than write a big check and deny they did anything wrong

The settlement agreement was filed in U.S. District Court for the Central District of California. It calls for no punitive damages, Madigan said. In the agreement, the defendants deny claims of discrimination.

* Other business-related news…

* Illinois: The land of leavin’?

* Editorial: Illinois needs new tack on biz breaks

* Jerry Roper: Illinois deserves an A for economic-development assistance

* Lawsuit seeks to block Children’s heliport

* Chicago-based investment group purchases Sun-Times Media

* New Sun-Times will ramp up specialized content online

- Posted by Rich Miller        

16 Comments
  1. - Yellow Dog Democrat - Thursday, Dec 22, 11 @ 12:37 pm:

    Hats off to the Sun-Times editorial board for raising a red flag about the recent spat of taxpayer-funded handouts to corporations.

    I think that they missed one very big and important point though.

    When CME processes an electronic trade from a customer in California, they don’t pay any taxes on that sale in California.

    Until now, they paid taxes on that trade in Illinois because they are an Illinois-based company and the servers that process the transaction are located in Illinois as well.

    Its the very same reason that Amazon.com doesn’t collect and remit sales taxes for sales to Illinois customers.

    I’d agree with the Sun-Times that it could be considered unfair for CME to pay taxes in California AND Illinois…but not pay taxes anywhere?? How is that fair???

    Moreover, this new policy goes directly against the trend to close the loopholes that allow internet-based companies to avoid paying their fair share of taxes, to the detriment of brick-and-mortar businesses of all sizes.

    Dig deeper, my friends. Dig deeper.


  2. - Cook County Commoner - Thursday, Dec 22, 11 @ 12:43 pm:

    And how much is each injured minority loan applicant receiving in relation to the damage suffered? Simply because it’s a record settlement doesn’t mean it’s fair.


  3. - Rich Miller - Thursday, Dec 22, 11 @ 12:47 pm:

    CCC, from what I can gather, if they got hit with extra fees, they’d get all that cash back plus some. If they got hit with a higher rate, they’d get up to $10K back.


  4. - John Bambenek - Thursday, Dec 22, 11 @ 1:02 pm:

    If that’s the case, this is one of the few class actions where the victim actually gets made whole and a welcome change.


  5. - Small Town Liberal - Thursday, Dec 22, 11 @ 1:06 pm:

    - If that’s the case, this is one of the few class actions where the victim actually gets made whole and a welcome change. -

    Whoa, you’re a fan of class actions? Or is this a kind of backhanded compliment? Just curious.


  6. - wordlslinger - Thursday, Dec 22, 11 @ 1:10 pm:

    –Money can compensate, but shouldn’t somebody go to jail over this?–

    No, only Bernie Madoff goes to jail for recklessly crashing the world economy. He was the Lone Gunman.

    Goldman Sachs robs billions from investors and pays a $550 million fine — but doesn’t admit wrongdoing and no one is prosecuted.

    Same with AIG. They rob and pay a $750 million fine — but admit no wrongdoing and no one is prosecuted.

    Finally, Judge Rakoff in Manhattan has had enough. He rejected the SECs proposed “boys will be boys” settlement with Citigroup for robbing its investors.

    –It is harder to discern from the limited information before the Court what the S.E.C. is getting from this settlement other than a quick headline. By the S.E.C.’s own account, Citigroup is a recidivist, and yet, in terms of deterrence, the $95 million civil penalty that the Consent Judgment proposes is pocket change to any entity as large as Citigroup. While the S.E.C. claims that it is devoted, not just to the protection of investors but also to helping them recover their losses, the proposed Consent Judgment, in the form submitted to the Court, does not commit the S.E.C. to returning any of the total of $285 million obtained from Citigroup to the defrauded investors but only suggests that the S.E.C. “may” do so. In any event, this still leaves the defrauded investors substantially short-changed. . .–

    http://www.forbes.com/sites/billsinger/2011/11/29/judge-rakoff-rejects-secs-contrivances-in-citigroup-settlement/


  7. - John Bambenek - Thursday, Dec 22, 11 @ 1:11 pm:

    Some times class actions are justified. I’m not against the type of litigation, I’m against spurious cases (class action or not). What I’m against is what is a common practice in class actions of attorneys mopping up the cash reward and the actual “victim” getting coupons.


  8. - Small Town Liberal - Thursday, Dec 22, 11 @ 1:13 pm:

    - actual “victim” getting coupons. -

    Hey, I’m going to get probably a dollar or two knocked off my next ticketmaster purchase…


  9. - John Bambenek - Thursday, Dec 22, 11 @ 1:16 pm:

    Well, I guess it’s the little things in life. :)


  10. - Aldyth - Thursday, Dec 22, 11 @ 2:18 pm:

    White collar crime simply isn’t taken as seriously as the guy who robs the convenience store with a BB gun. Yet, the damage can be much broader. The financial security of an entire generation of Americans has been undermined because of the actions of Big Finance. Tell the people who have lost their jobs or their homes due to the economic downturn triggered by the subprime mortgage crisis that they haven’t been harmed by white collar crime. Every time I look at my 401K and question whether or not I will ever be able to retire, I pretty much feels like I’ve been robbed.

    Until these white collar criminals do serious time for their crimes, nothing will change. Banks keep being allowed to pay fines, which they factor into the cost of doing business. Their bonuses still arrive and they get nothing more than a shame on you from the SEC. Why should they change their behavior?


  11. - soccermom - Thursday, Dec 22, 11 @ 2:33 pm:

    Thank God for the Chicago Reporter. But how many of these people have lost their houses by now because they were steered into subprime? How do you make somebody whole for cold-bloodedly taking away their shot at the American dream?


  12. - Hickory - Thursday, Dec 22, 11 @ 3:30 pm:

    The Chicago Reporter should get most of the credit.


  13. - Judgment Day - Thursday, Dec 22, 11 @ 3:51 pm:

    First off, this is Countrywide, which is now (currently) a unit of BOA.

    Have real problems with this ’settlement’, as BOA (and for that matter, the entire bankster community) will want to push this same type of ’settlement’ to other parties, which are are far larger issues and far more numerous.

    I know, the argument will be “Well this is just a ‘floor’ for future settlements”. Well, IMO this ’settlement’ (more like a ‘cave’) is a pretty poor ‘floor’ to use for going forward.


  14. - Quinn T. Sential - Thursday, Dec 22, 11 @ 4:25 pm:

    {AG Madigan efforts prompt record payout by racist bank}

    From the Settlement Agreement:

    There has been no factual finding or adjudication with respect to any matter alleged by the United States. The parties have entered into this Order to avoid the risks, expense and burdens of litigation and to resolve voluntarily the claims in the United States’ Complaint of the Defendants alleged violation of federal fair lending laws.

    You might want to modulate the headline here down a notch to indicate “alleged” racist bank.

    I’m just sayin


  15. - Yellow Dog Democrat - Thursday, Dec 22, 11 @ 5:32 pm:

    @Quinn T. -

    That’s boilerplate language for all settlements. The data from Countrywide is incontrovertible, even by countrywide.

    And Rich is absolutely right — just like Rod Blagojevich, cop orate white collar crime is never going to be deterred until the suits start doing real jail time.


  16. - wordslinger - Friday, Dec 23, 11 @ 8:12 am:

    –You might want to modulate the headline here down a notch to indicate “alleged” racist bank.

    I’m just sayin –

    You’re “just sayin” what? They coughed up $335 million because they did nothing wrong?

    But that goes to the bigger point that Judge Rakoff is raising. These Big Finance gangsters need to be held accountable. They are guilty of crimes against humanity.

    No more cost-of-doing business civil penalties. You knock over a Piggly Wiggly, you do real time. Should be the same when you knock over the world economy.


Sorry, comments for this post are now closed.


* Caption contest!
* Federal rules protecting net neutrality have expired! Support House Bill 4819
* Harmon says he has votes in Senate for gun shop licensing override, but future still unsure
* It's just a bill
* Rauner makes "official" trade show announcement seven months after it was announced
* *** UPDATED x1 *** Biss says he wants more details about Pritzker's progressive tax plan, Rauner campaign agrees
* Question of the day
* *** UPDATED x1 *** Why was Travis Reinking allowed to keep his guns?
* Comptroller: State racked up "two decades worth of late payment interest penalties in just over two years"
* Madigan says he hasn't made up his mind on legalizing marijuana
* Illinois Legislators: Make Health Coverage Fair by Supporting HB 4146
* Rauner's new website slams Pritzker-Madigan "corruption"
* Today's must-listen: Madigan and lone chairmanship "No" vote together on Joravsky's show
* *** LIVE *** Session coverage
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............
<


Loading


* The election weirdness is just beginning - MyWe.....
* Parrish, Howard Ralph..
* Illinois gun dealer licensing veto override vot.....
* Gun dealer licensing veto override vote could h.....
* VIDEO: GOP governor candidate Jeanne Ives: 'Not.....
* No gun-licensing override, deadline for action .....
* No gun-licensing override, deadline for action .....
* No gun-licensing override, deadline for action .....


* That's a heavy lift: Rhino at Illinois zoo undergoes CT scan
* Man who disarmed Waffle House shooter hailed by lawmakers
* Will County officials to use 50 percent renewable power
* Court bars winner of 2017 mayoral election from office
* Autopsies unclear on cause of mother's and daughter's deaths
* No gun-licensing override, deadline for action is Wednesday
* The Latest: Suspect faces new charges in shooting
* Court to rule on Illinois village's right-to-work ordinance
* The Latest: Colorado woman urged FBI to 'hold on' to suspect
* The Latest: Rifle seized at Waffle House suspect's apartment

* Gun dealer licensing veto override vote could happen today
* Appeals court to rule on lawsuit over right-to-work ordinance
* Senate OKs bill to nearly double home care workers' pay
* 4th death reported in Illinois linked to synthetic marijuana
* Google aims at Illinois' privacy law after Facebook lobbying failed
* Illinois Lottery sells tickets for instant games after top prizes are gone
* Michael Madigan wins re-election as Democratic Party leader
* Champaign-area bus company faces harassment lawsuit
* Illinois' late fees skyrocket over past 3 years
* State paying bills, but not late-payment interest

* From 'Mayochup' to potential mayhem: Kraft Heinz and social media
* Sinclair agrees to sell 23 TV stations as part of Tribune deal
* Sinclair agrees to sell WGN-TV—but would still control it
* Robert Malott, CEO who wrestled with Boesky's crimes and Continental's downfall, dies at 91


* With Avisail Garcia on the DL, Daniel Palka prepares to make White Sox debut
* Horoscope for April 25, 2018
* 2 men shot in Chicago Lawn
* Man, 45, critically wounded in Lawndale shooting
* Police: Man shot to death in Austin
* Bears GM Pace has been around for 3 seasons but doesn’t have much to show for it
* Ex-Cubs manager Baker says he would represent Giants if elected to Hall of Fame
* Cubs find Legend of Kyle Schwarber right where they left it: Cleveland
* ‘Avengers: Infinity War’ unites Stark and Star-Lord in a massive Marvel mashup
* 36-year-old woman stabbed in face in Englewood, suspect in custody


* 1 dead, at least 10 wounded in Chicago shootings since noon Tuesday
* For Bears to nail this draft, they must find a high-quality player at the top of Round 2
* First lady steps into spotlight for state visit with France
* Kyle Schwarber and Ian Happ pace Cubs to 10-3 victory over Indians
* Cubs pitcher Tyler Chatwood trying to find his groove on the mound
* Parolee who escaped custody on South Side arrested in Glenview
* Federal judge orders Trump administration to continue DACA program and accept new applicants
* By utilizing whole field, Kyle Schwarber putting 2017 slump far behind him
* Trump on North Korea: Kim Jong Un is 'very open' and 'very honorable'
* Rick Renteria, White Sox's 26th man, ejected in 1-0 loss to Mariners


» April 24, 2018 - Full Show
» Proposal To Get Pre-Trial Detainees A Chance To Vote From Jail Passes IL House
» Getting Books To Illinois Prisons; Virtual Medical Interpreters; Chicago’s Gang Database
» Illinois Pushes For State Net Neutrality Rules After Federal Rules Expire
» Prince Heirs Sue Illinois Hospital Over Care During Overdose
» Immigrants Shine In New CPS Varsity Sport
» State Legislature Considers Tougher Penalties on Texting While Driving
» April 20, 2018 - Full Show
» April 23, 2018 - Full Show
» Madigan Elected For 6th Term As Democratic Party Chairman


* Gun dealer licensing veto override vote could happen today
* Our View: Budgets should include estimates of late payment interest penalties
* Guest View: Illinois’ 4 pillars of bad budgeting
* Byron York: Is 'can't prove untrue' the new standard in Trump probe?
* Marc Thiessen: Veterans deserve better
* Catherine Rampell: Tax cuts were supposed to save the GOP from Trump. Oops.
* Appeals court to rule on lawsuit over right-to-work ordinance
* Senate OKs bill to nearly double home care workers' pay
* 4th death reported in Illinois linked to synthetic marijuana
* Google aims at Illinois' privacy law after Facebook lobbying failed


* Winning streaks
* Rodgers returns to B-N for Red Cross event
* Ahead of the curve: Students in the CEO Program show off their businesses
* First phase of Main Street Landing, fireworks ordinance on council agenda
* Davenport unveils neighborhood revitalization goals
* Lawmakers want Quincy Legionnaires' report by Friday
* Board OKs asbestos contract
* Union leaders vow to protect Shop 'n Save jobs as parent company plans to sell stores
* Court to rule on village's right-to-work ordinance
* Overtime session could continue for weeks


* Girls soccer: Leyden puts an end to scoring woes
* Girls soccer: Geneva, Batavia battle to 1-1 deadlock
* Cougars earn first home win of season
* Baseball: Metea Valley, Glenbard East, WW South win
* More is too much in ambitious 'Avengers: Infinity War'

* New details emerge about meeting between C...
* Substitute teacher accused of 'grabbing' 4...
* Congress responds to 60 Minutes' Allegiant...
* Over 100 US Representatives Press Presiden...
* House Democrats talk to Cambridge Analytic...
* House Democrats Talk to Cambridge Analytic...
* US Visa rules: Opposition against ending w...
* A quick look at a few congressional races ...
* House Approves American Space Commerce Fre...
* Underwood hopes winning primary formula ca...

* E-Cigarette Sting Operation Prompts Warnin......
* FDA Cracks Down On Juul E-Cigarettes Popul......
* E-Cigarette Sting Operation Prompts US War......
* A tough re-election climate tests the chum......
* Senators Cling to a Fading Custom Trump's ......

* Tammy Duckworth and Working Moms Like Mine...
* The Senate celebrates Sen. Tammy Duckworth......
* Editorial: Up to the task...
* I'm a legislator and a mom. Tammy Duckwort......
* Tammy Duckworth is uniquely privileged, bu......

* Martysaurus Rex: A Creative Life More Important Than Football
* Piece's TV
* The [Wednesday] Papers
* Woman Missing From Buena Park
* Online Learning Shouldn’t Be ‘Less Than’
* Florida’s push for online courses benefits all, including STEM students
* Universities must expand reach to stay competitive
* Class Central Learner Survey (2017): MOOC Users Highly Educated, Have Experienced Career Benefits
* TenMarks to shut down operations after 2018-19 school year
* ABA proposal would allow law schools to offer more classes online


* IEMA Highlights Role of Volunteers in Disasters
* Governor Rauner activates State Emergency Operations Center in Springfield
* February Flooding Information
* IEMA Urges People to Prepare for Severe Weather
* Governor issues state disaster proclamation for flooding in Iroquois, Kankakee, Vermilion Counties

  
* WhatsApp to raise its minimum age to 16 in Europe
* PayPal Credit and Barclays can no longer be used to finance Apple purchases in UK
* Say goodbye to Google Play Music, and get ready for YouTube Remix
* The OnePlus 6 will be officially announced on May 17 in China
* Enterprise developers keep reaching for the cloud
* The LG G7 has a 'super bright' 6.1-inch LCD screen
* Instagram rolls out batch uploads to Stories

* Mariners shut out White Sox, rubber match Wednesday vs King Felix
* White Sox Minor League Update: April 24, 2018
* Mariners shutout White Sox, rubber match Wednesday vs King Felix
* Renteria tossed arguing called third strike
* Relievers keep M's in check, but White Sox fall
* Renteria tossed arguing called third strike
* Renteria tossed arguing called third strike


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller