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L.A. files against banks for discriminatory lending

Three major U.S. banks have come under fire for lending practices that allegedly resulted in 200,000 foreclosures

Wells Fargo, Bank of America, and Citigroup are the three latest banks against which the California city of Los Angeles has filed mortgage-lending discrimination suits. The prosecution alleges that discriminatory practices against minorities and dubious lending practices have been in effect since 2004, and has led to steep costs for the city.

The city's goal is reportedly to try to recover tax revenue lost as a result of a wave of foreclosures — approximately 200,000 — that led to a loss of $78 billion in home values. While housing foreclosures can be the result of a wide array of market forces, the city claims that the aforementioned three banks committed predatory lending and engaged minority communities in loans they could not afford resulting in housing losses and increased need for city services.

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Juliana Kenny

Juliana Kenny is a contributor to, covering a range of topics including patent litigation, conflict mineral laws, executive compensation, and antitrust regulation. Juliana earned B.A.s...

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