HSBC, Wells Fargo accused of"systematic, institutionalized racism" in their lending

Discussion in 'Wall St. News' started by ASusilovic, Mar 14, 2009.

  1. WASHINGTON -- Wells Fargo Corp. and HSBC Holdings PLC defended their lending practices on Friday after the NAACP's announcement it was filing lawsuits against the two banks alleging "systematic, institutionalized racism" in their lending to certain borrowers.

    "We stand by our fair lending and consumer protection practices, and we are confident that we are treating our customers fairly and with integrity," an HSBC spokeswoman said in an emailed response.

    Wells Fargo said in a statement also sent via email that the allegations "are totally unfounded and reckless," and described the thought of a discrimination claim "reprehensible."

    "We have never tolerated, and will never tolerate, discrimination in any way, shape or form in any of our business practices, products, or services," Wells Fargo said, vowing to "vigorously defend" the allegations.

    The comments were in response to the National Association for the Advancement of Colored People saying it would file separate lawsuits against the banks in U.S. District Court in California on Friday morning. The group claims that African-American homeowners were frequently steered into mortgages with higher interest rates than those offered to white borrowers with similar credit histories.

    Austin Tighe, co-lead counsel for the NAACP, told Dow Jones Newswires late Thursday that predatory lending practices "are legally actionable and more importantly, morally reprehensible."
  2. The group claims that African-American homeowners were frequently steered into mortgages with higher interest rates than those offered to white borrowers with similar credit histories.

    I'd be willing to bet that practice went on in the auto loan business long before mortgages.

    Perhaps we could apply the novel concept of "shop around" or "don't sign on the line no one is holding a gun to your head" or negotiate.
  3. pkang


    Could be a shot in the dark but maybe black people have higher credit risk than white people.
  4. In the 1990s a law professor in Chicago, Ian Ayers, put together a team
    of 38 people. 18 white men, 7 white women, 8 black women, and 5 black
    men. He had them dress as similar as possible in upscale, but
    conservative clothing. All were in their mid-20s. All were of average
    attractiveness. All were given the same cover story. They were told to
    visit 242 automobile dealerships in the Chicago area and present
    themselves as college-educated young professionals who lived in the
    upscale neighborhood of Streeterville. They were told to walk in, wait
    to be approached by a car salesman, and indicate that they were
    interested buying in the lowest price car in the showroom. After
    hearing the salesman's initial offer, they were told to bargain back and
    forth until the salesman either accepted an offer or refused to bargain
    any further. This in almost all cases took about 40 minutes.

    The object of this study was to determine: With all other things being
    as equal as possible, how does race or gender affect the price a
    salesman in a car dealership offers?

    White men received initial offers $725 above the dealer's invoice.
    White women got initial offers $935 above dealer's invoice.
    Black women received initial offers $1,195 above dealer's invoice.
    Black men got initial offers $1,687 above dealer's invoice.

    After 40 minutes of negotiation, Black men were only able to get the
    offer down to $1,551 above dealer's invoice. In other words even after
    lengthy negotiations black men were only able to get down to a price of
    just over $800 above what white men were initially offered without
    having to say a word.
  5. It's cool being white.

    Probably sales people are trying to get back some of their taxes that get thrown down the welfare hole, who gives a F&^k? Same reason that the private sector always sells the public sector such lousey computer systems and equipment at such high prices.

    Actually, car salespeople just know that basically they can get more out of Black shoppers, they have told me that. They told me that black women got the worst deals than anybody, that's in California though... the color of choice for car sales guys is green folks.

    The NAACP is steering Blacks towards lawsuits against the private sector which results in Blacks being unemployable by the private sector. They work in the public sector or get welfare, nobody in their right mind hires them for private sector jobs where a lawsuit will almost certainly ensue at some point. The NAACP then blames whitey for blackie's problems so whitey rips off blackies at every turn to make up for the injustice.. Democrats run the inner cities and won't let non union companies with entry level jobs build there, so black youth unemployment is never below 30-40%, how's that my problem??
  6. It's cool being white.

    The lucky sperm club.
  7. GTG


    And yet, Wells Fargo emerged from the mortgage crisis with one of the healthiest balance sheets of all of the big national banks? Must just be a coincidence....
  8. Much like in the stock market, you can bitch and whine or you can take what they give you and use it to your advantage.

    The black male should hire a white guy to go and negotiate on his behalf and pay him $100.
  9. i would like to try that car dealership survey in Jamacia. Bet the whites get a screwing:D