The NAACP is suing two major banks, claiming they engaged in racist lending practices.
The NAACP filed lawsuits Friday against two of the nation’s largest mortgage lenders — HSBC and Wells Fargo — alleging “systematic, institutionalized racism” in their subprime lending.
NAACP CEO Benjamin Jealous says, “We are not seeking damages; we just want them to fix the problem.” We have targeted these banks because we have gone through what we can get our hands on, and it seems like there’s a real problem here,” NAACP CEO Benjamin Jealous told CNN. Jealous said the group wants “transparency.” “We want to see the books,” he added. “We are not seeking damages; we just want them to fix the problem.” [snip] Under subprime lending, people who don’t qualify for lower interest rates can borrow money at higher rates. The NAACP argues that the companies gave subprime rates to African-Americans who qualified for better rates and gave better rates to white customers with similar credit histories.
No damages requested, just a “you stop that right now.” Hmm. Maybe the NAACP doesn’t think the banks would be able to pay in the first place.