John Edwards will be dropping his presidential bid in the next few minutes when he gets word of this one. There's some serious money to be made for trial lawyers suing the banks, mortgage brokers, builders, lenders, realtors, appraisers and other assorted REIC.
But the lawyers gotta act fast. The REIC will all be bankrupt soon. Tough to get blood from a turnip.
Wells Fargo, BofA, others sued by city of Cleveland over foreclosures
The city of Cleveland sued Wells Fargo and other mortgage lenders alleging that high-rate mortgages that have forced many into foreclosure and left entire neighborhoods in ruins.
Officials of the Ohio city hope to collect hundreds of millions in damages, including depressed tax revenues from lower property values and money spent on demolishing and boarding up abandoned houses.
"To me, this is no different than organized crime or drugs," Cleveland Mayor Frank Jackson told the Cleveland Plain Dealer.
January 13, 2008
And then the screwed cities started suing the greedy banks who issued the toxic loans that led to the foreclosures. No, you can't make this stuff up.
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"Officials of the Ohio city hope to collect hundreds of millions in damages, including depressed tax revenues from lower property values and money spent on demolishing and boarding up abandoned houses."
I'm no big fan of the banks, but it is pure insanity to hold them accountable for the poor decisions of others. This is what happens when Democrats are in charge. According to their philosphy, individuals have all rights and no responsiblities. They actually want home prices to remain high and unaffordable just so they can collect more revenue.
God save this country if Hillary gets elected.
phffff.
We know that 9/11 was no different than organized crime or drugs either, but what do you do when they just keep telling you more lies?!!!
These city/government animals have de-evolved into blood drinking pig demons. These tax mooching scum think even more then usual that blood sucking is their right. Property values are not dropping, they are resetting back to the norm.
Greed cycle continues...and will keep on going and going and going until everything and everybody is exhausted.
OMG!
Somebody actually put a gun to the FB's heads and FORCED them to buy homes that they could not afford. Now they are defaulting on the loans, the hovel is being foreclosed on and it's phony appraised value dropping, resulting in decreased/no tax revenues for those sooooo deserved pay raises, benefit packages, and gold plated pensions.
How dare you Mr. Banker Sir!
How dare you set up a situation where our own tax/appraisal laws come back to bite us in our priviledged a$$.
Oh, mark my words, You Will Pay Sir!
(sarcasim off!)
Screw them all!
It will take a Dem to represent all the plaintiffs because their will not be very many Republicans left once the people responsible for this debacle become defendants in all the lawsuits.
Anonymous 11:37, I see what you are saying since the last 8 years of Neocon policy has worked out so well for us. Who would want to change course now!!!!! signed, Lawrence Yun.
""To me, this is no different than organized crime or drugs," Cleveland Mayor Frank Jackson told the Cleveland Plain Dealer."
Damn!!! Now THAT is the kind of politician I like!!
One that will call out the crime syndicate running this country...with no holes barred.
Frank Jackson....YOU ROCK!!!
can't wait for the michael moore "documentary".
What a crock of b.s. They need to sue the phony homedebtors who knew full well they couldn't afford what they were getting into.
Typical "blue" city.
It's important to remember that borrowers as well became just as greedy - each one trying to outbid the other for a piece of the "American Dream".
Now, we have successfully outbid ourselves for property that will depreciate further and further - CountryWide.
Hey, good for the cities.
Privatize profits, socialize losses has been the mantra of the banks since this crisis started.
The blowback to this strategy is when the governments try to socialize the profits as well.
Jymkata
I live near Cleveland and suggested to several Mayors that they should sue, including Frank Jackson. But not for "predatory lending" but when ARGENT sunk I told them sue and subpoena the docs and emails and you will see a daisy chain of fraud, inflated appraisals, bogus title companies and greed. And yes many of the people taking out these loans needed to be jailed also. I am against the Cleveland suit but if there is no summary judgment then banks may have a problem
So what do we learn out of this mess ?
1) Joe-6-pack Americano does not want to work but want to have plenty of money for extravaganza spending. My conclusion: Joe-6-pack is a piece of human excrement destined for fertilizer in the corn field
2) The government will "Enter the Dragon" of the average Americano up the kazook until your eyes popped out in pain or in estacy.
3) This country SUCKs big time.
And last but not least, LONG LIVE the Snapper Turtle.
More Fallout from the pigs at the Greed Troughs across this country.
A Paper Economy. Too many never wanted to do genuine hard work like their grand parents.
Basic prices, basic profit over the years worked for decades.
Some of you are too harsh with people. Remember your grandparents paid @ 26k and moderate boomers paid @$80k for nice homes in CA.
Renting just west of Cleveland here. You have NO IDEA how bad it is down here on the ground. Random assault 7 teens on 1 guy 2 weeks ago with a pipe and knives in Shaker Heights. Rampant thuggery in Lakewood. Almost every pedestrian downtown after dark drunk and/or crazy asking for money.
someone should sue the city/states for letting the lenders get away with this for so long.
I'd like to see criminal statutes
for "failure to enable education".
It's the source of our most
egregious problems; and life
without genuine education is
tantamount to denied life,
liberty, and pursuit; not to
mention income and security.
Perps might be parents, teachers,
school boards, unions, politicos.
(Those who suffered this crime are not really prepared to deal with this issue.)
A secondary school diploma in the
U.S. is not always evidence of enabled education, and does not always imply preparation to understand much about the home mortgage process, escrow, libor, amortization, conflict
relationships, and so on;
not to mention the reams of fine print and the "scary" mortgage math.
There is an ethical, if not legal,
fiduciary obligation for the string of "professionals" in the process to not mislead a prospective homedebtor.
However, misrepresentation and
concealment have been recent hallmarks for appraisers, mortgage middlemen, bankers, realtors, and others; sometimes working in concert. (ala ri-co)
The engine that kept the Ponzi Party afloat so long was the cdo market, which is another web of intrigue ripe for legal actions from injured parties worldwide.
(The effects of good litigation make your lives tolerable, despite the misinformed critics.)
Obviously, suing the individuals responsible wouldn't amount to much. Responsible banking could have stopped this whole mess. The idea is that the FBs did it because they were greedy and/or fools, but the banks definitely knew better! Whether or not that can be proven in court--we'll see.
If it were your neighborhood you would feel differently. Tax revenues are the tip of the iceberg, it is what happens to neighborhoods full of vacant homes (see Detroit) after foreclosure.
Our local governments failed us. Suing banks is a desperate move, not at all noble, but what else can a city trying to hold itself together do? If it works, watch all of the state/local gov'ts get in line for their handouts.
******************
For all the one state, two state, red state, blue state dopes: this is beyond politics. Or must Keith post the infamous GWB home ownership goal quote, yet again?
DC pushed this all the way and our state/local gov'ts did the old matador "Ole" and let these creeps run roughshod all over our communities. This is why we need some governement regulations. Not for government control, but for holding businesses/individuals accountable.
Wasn't Cleveland one of those cities that were upset with banks for not making "home ownership available for more minorities and low income persons"?
This is what happens when race hustlers start complaining. People lower standards, the idiots become the majority and the shitstorm ensues.
How can Cleveland sue anyway? They profited from the crime.
Our children and grandchildren will look back at this and say "WHAT THE FUCK?!"
Cleveland was in ruins long before the housing ponzi scheme started.
I agree with Eric's post. It seems like during good times the city leaders are begging the banks to make mortgage loans to poor citizens of the city.
I predict that within 3 years we will see the mayor of Cleveland complain that none of the banks will make loans to Cleveland's lower-income citizens.
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