With landmark lawsuit, Barack Obama pushed banks to give subprime loans to
Daily Caller – Neil Munro – 9/3/2012
Finally, some evidence of Barack Obama’s past emerges, and it was and is still painful for those involved because of Barack Obama’s “legal skills.”
President Barack Obama was a pioneering contributor to the national subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices.
As few as 19 of those 186 clients still own homes with clean credit ratings, following a decade in which Obama and other progressives pushed banks to provide mortgages to poor African Americans.
The startling failure rate among Obama’s private sector clients was discovered during The Daily Caller’s review of previously unpublished court information from the lawsuit that a young Obama helmed as the lead plaintiff’s attorney. [RELATED: Learn about the 186 class action plaintiffs]
Since the mortgage bubble burst, some of his former clients are calling for a policy reversal.
Obama’s lawsuit was one element of a national “anti-redlining” campaign led by
groups, who argued that banks unfairly refused to lend money to people living
within so-called “redlines” around African-American communities. The campaign
was powered by progressives’ moral claim that their expertise could boost home
ownership among the Chicago ’ most disadvantaged minority,
Obama's African-American clients got coupons, not
Progressive activists’ ambition instead contributed greatly to a housing bubble that burst in 2007, crashed the nation’s economy in 2008, wiped out at least $4 trillion in equity, kept unemployment above 8 percent for four years, and damaged the intended beneficiaries of looser mortgage lending standards.
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