Morgan Stanley Faces Discrimination Lawsuit Over Subprime Loans

Morgan StanleyNEW YORK -- Morgan Stanley is being accused of discriminating against black homeowners and violating federal civil rights laws by providing strong incentives to a subprime lender to originate mortgages that were likely to go unrepaid.

The lawsuit, which seeks class-action status, was filed Monday by the American Civil Liberties Union and others on behalf of five Detroit residents and Michigan Legal Services.

The five homeowners in the lawsuit received their loans from subprime lender New Century Mortgage Corp., which has since collapsed.

The lawsuit claims Morgan Stanley (MS) pushed New Century to issue certain types of loans with no concern about risk, because it made its profit at the outset when the investment bank bundled the loans into securities and sold them.

An email was sent to Morgan Stanley seeking comment but there was no immediate response.



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jtmpmm

All of these harsh comments. Asserting the rights of banks to f...k over the public. Did you ever think that maybe the sought out the least informed then dangled the American dream in front of them?

Phil Grammy was a fence jumper who wanted the nomination of Repubs for president. He didn't get it and declined to run for the senate after his wife was embroiled in a financial scandal with a company on whose board she sat.

October 17 2012 at 12:18 PM Report abuse rate up rate down Reply
kent05r

Ben says he going to print forty billion a month. With no backing or credit increases from anyone.
I say why waste the paper just burn the books like they have for so long now under Obama.
House votes 327-98 to Audit the Feds and Obama says no way. Why? More accountability from this administration. Down the rabbit hole we continue under Obama. Vote; Mitt/Ryan Save a country yours.
There are four basic ways in which a public officer commits extortion. The officer might demand a fee not allowed by law and accept it under the guise of performing an official duty. He or she might take a fee greater than that allowed by law. In this case the victim must at least believe that he or she is under an obligation to pay some amount. A third method is for the officer to receive a fee before it is due. The crime is committed regardless of whether the sum taken is likely to become due in the future. It is not criminal, however, for an officer to collect a fee before it is due if the person paying so requests. Finally, extortion may be committed by the officer's taking a fee for services that are not performed. The service refrained from must be one within the official capacity of the officer in order to constitute extortion.

Other Crimes Distinguished

As a crime of theft, extortion is closely related to Robbery and False Pretenses.

Robbery differs from extortion in that the property is taken against the will and without the consent of the victim, unlike extortion, where the victim consents, although unwillingly, to surrender money or property. Another distinguishing factor is that the nature of the threat for robbery is limited to immediate physical harm to the victim or his or her home. Extortion, on the other hand, encompasses a greater variety of threats.

October 16 2012 at 7:58 AM Report abuse rate up rate down Reply
DorisM56

:)

October 16 2012 at 4:10 AM Report abuse rate up rate down Reply
SPQR

I hate thes stories! now I have to write all my congressmen and women before the election

October 15 2012 at 11:33 PM Report abuse +1 rate up rate down Reply
SPQR

Maybe a tent

October 15 2012 at 11:30 PM Report abuse +1 rate up rate down Reply
SPQR

everyone can't own a home no matter what the Deomcrats say

October 15 2012 at 11:30 PM Report abuse +1 rate up rate down Reply
SPQR

you can't sue for stupidity ...oh wait this is America the land of making more money by suing.... send em back to the projects

October 15 2012 at 11:29 PM Report abuse +1 rate up rate down Reply
dm23nyc

I just dumped my broker from Morgan Stanley. What a bunch of crooks. These are the same guys that pushed Facebook on their unsuspecting and trusting clients.

October 15 2012 at 11:14 PM Report abuse rate up rate down Reply
RRwhsle

so they were discriminated against because they're too stupid to know they can't pay for something they never earned? they can't add and subtract. they don't understand "interest only for 3 years" and then you pay a real mortgage. more money than they've ever made in their life but somehow they were going to pay it. millions of these stupid people did this. that's what tanked our country. wall street preying on stupidity. they didn't care what color you were.

October 15 2012 at 10:55 PM Report abuse +1 rate up rate down Reply
jjr526

So now they get sued for doing what the government wanted although the government were the only group that actually believed these loans would get repaid.

October 15 2012 at 10:38 PM Report abuse +2 rate up rate down Reply