October 15, 2012 by Julia
Let me lay this out for you. The Community Reinvestment Act requires banks to give subprime loans. President Obama once sued Citibank to force more race-based subprime lending. In fact, Obama’s DOJ is still suing banks for not issuing enough subprime loans. On the other hand, the recipients of the subprime loans are now also suing the banks for “predatory lending,” and the DOJ is, oddly, also suing banks for issuing too many subprime loans instead of prime loans.
In other words, the government and attorneys like Obama forced banks to issue loans to people who would otherwise be too much of a risk, the banks created subprime lending to protect themselves at least a little from the forced additional risk, and now the government and the recipients of the forced lending are suing the banks for using the subprime loan mechanism to protect themselves against the risk forced on them by the government in the first place. (FYI, the alleged “racial discrimination” in the Wells Fargo case is probably more related to the addresses of the properties than the race of the borrowers)
Genius, US government. Genius.