Los Angeles Says Bank of America Corp (BAC) Pushed Minorities Into Risky Mortgages | Next iPhone News: Los Angeles City Attorney Mike Feuer was on a roll last week. Last Thursday, Feuer filed lawsuits against Citigroup Inc (NYSE:C) and Wells Fargo & Co (NYSE:WFC), alleging discrimination against minority borrowers during the pre-crisis mortgage boom.The next day, he added Bank of America Corp (NYSE:BAC) to the list of miscreant banks, charging the big bank with similar distasteful lending practices as Citigroup Inc (NYSE:C) and Wells Fargo & Co (NYSE:WFC): steering unwitting Hispanic and African American borrowers into pricey, subprime mortgages that they could not afford.
An ugly charge dating back to pre-recession days
The charges stem from lending behavior as far back as 2004 and, according to the suit, continues to this day. The city cites testimony of former bank employees to showcase dodgy business practices designed to entice minority borrowers into the subprime market.
