Guess who sued banks forcing them to make subprime loans to Minorities in Chicago?

Thank you for informing us but this 1994 case did not cause or set the stage for the 2008 banking crisis. It was a failure of businesses from greed. Before the crash, large sovereign funds were looking for investments with a better rate than Treasury bonds but still safe in the short term. Investment banks created an investment made of mortgage loans. The investment banks wanted more mortgage loans to sell more investments. The third party mortgage companies undermined their underwriting standards to create more loans. The market for homes dropped. That caused a credit crisis and the Great Recession started. You can blame the government for being asleep while this happened but the recession is all the doing of the private sector.

Perhaps if the banks would have just kept the interest rates low, many of these people would still be paying on their houses....I know not all would, but it was quite crazy to think that people who did not have much income would be able to afford more than what they were already paying when the interest rates were lower for that first year.
The banks set this all up to fail, and they had to have known that the way they were doing things was going to end up causing people to loose their homes, the money they had already paid into them, and in the end the banks would end up with all of the money, and "bailed out" of the crisis....

It all seems like a HUGE ponzi scheme to me, with the people who lost their houses, and were told to fight for something they couldn't afford, being the biggest victims of it all. I think many of these people were told to just sign on the "x", and did not bother to read what they were signing, I'm sure even some of the banks did not fully explain to the borrowers what they were agreeing to. Not an excuse, but it is an observation, some people do not understand financing, etc.

Were this a stand-alone incident it would be instructive. Because it was part of a larger effort, it is destructive.

The example of Wells Fargo tells the story. The Federal Government sued Wells Fargo for not making enough sub-prime loans to minorities. Wells Fargo paid a fine of about $100M. Later, the government sued Wells Fargo for making too many sub-prime loans to minorities. Wells Fargo paid more than half a billion. Last year the Federal Government again sued Wells Fargo; this time it was for not making enough sub-prime loans to minorities. Wells Fargo paid more than $1B.

There are generally two ways to approach equality: equal opportunity, and equal outcome. We liberals fought for equal opportunity. The thugs are demanding equal outcome.

That is not entirely true..

Although Barack Obama was involved with the Buycks-Roberson case, he did not file the lawsuit, nor was he the lead attorney in the matter. He was a junior member of an eight-lawyer team that worked on the case:

Yes ,I know this .

He helped create the great recession thats for sure. Bad loans were at the core of it.