CRA...subprime.....Obama.....ACORN.....the dance begins....

[PostmodernProphet]

lets follow the trail....

Gramm-Leach-Bliley Financial Services Modernization Act, passed in 1999, makes the CRA ratings assigned by a supervising authority of critical importance to financial institutions. One of the reforms under Gramm-Leach-Bliley is the repeal of the depression era Glass-Steagall Act , which prohibited combining insurance and securities companies. However, under Gramm-Leach-Bliley, regulators may withhold authorization for a financial institution to enter into new lines of business, based upon its CRA ratings.

CRA guidelines imposed on banking industry (not deregulation, but targeted regulation)

http://www.freerepublic.com/focus/f-news/2084666/posts

Obama joins Miner law firm following graduation.....one of the cases he works on is Buycks-Roberson v. Citibank Fed. Sav. Bank

Obama represented Calvin Roberson in a 1994 lawsuit against Citibank, charging the bank systematically denied mortgages to African-American applicants and others from minority neighborhoods.

http://sweetness-light.com/archive/o...age-red-lining

that suit was based upon claim that Citibank had violated CRA requirments

ACORN showed its colors again in 1991, by taking over the House Banking Committee room for two days to protest efforts to scale back the CRA. Obama represented ACORN in the Buycks-Roberson v. Citibank Fed. Sav. Bank, 1994 suit against redlining. Most significant of all, ACORN was the driving force behind a 1995 regulatory revision pushed through by the Clinton Administration that greatly expanded the CRA (Community Reinvestment Act) and laid the groundwork for the Fannie Mae, Freddie Mac borne financial crisis we now confront. Barack Obama was the attorney representing ACORN in this effort. With this new authority, ACORN used its subsidiary, ACORN Housing, to promote subprime loans more aggressively.

http://themountainsage.wordpress.com...orn-and-obama/

funding for that law suit came from ACORN....

the case was settled and one of the terms of the settlement was aggressive financing in low income neighborhoods by Citibank....

— Form an affordable mortgage-lending program between Citigroup and ACORN Housing Corp. (AHC) to develop a specialized mortgage product for all AHC’s homeownership centers, and make mortgages available to immigrants who have previously been shut out of credit markets. *** — Focus on community development lending to increase affordable housing in areas where the Citibank Community Development and ACORN footprints coincide. — Provide borrowers with access to the best combination of loan product, price, service, and attributes. — Establish a net-benefit test for real estate secured loans.

http://www.freerepublic.com/focus/f-news/2084666/posts

Citibank carried out that agreement....

CRA Rating Outstanding (as of July 12, 1999)
CRA Statement Management has developed a comprehensive, multifaceted CRA program with quantifiable goals, a good level of ascertainment effort, and a strong targeted marketing program. Based upon Citibank's size and resources in the Washington-Baltimore multi-state marketplace, the institution has demonstrated a reasonable level of lending during the review period. The institution provided a number of credit products designed to meet community credit needs, and continues to devise targeted loan programs to meet the needs of low- and moderate-income people. The institution has also demonstrated an acceptable level of lending within low- and moderate-income areas and to low- and moderate-income applicants.
Primary Focus
of CRA Activity Community development activities have continued primarily through participation in a lending consortia. Additionally, Citibank has developed an intelligent program of corporate investments, grants and contributions which further its effectiveness in meeting the goals of CRA.

http://dbfi.dc.gov/dbfi/cwp/view,A,3,Q,585665.asp

and the result?....

Citibank Loses Billions, CEO Prince Resigns

Listen Now add to playlist


Morning Edition, November 5, 2007 · Citibank announces shockingly large losses stemming from investments in subprime mortgages. That could completely wipe out fourth-quarter earnings for the largest bank in the country. It was the last straw for Citigroup Chairman and CEO Charles Prince. He resigned Sunday after an emergency meeting. That makes him the second Wall Street chief executive within a week to lose his job. Last week it was Stanley O'Neal, who was the CEO of Merrill Lynch, after losses of more than $8 billion. Neither executive had enough successes to make up for those losses. Citigroup's stock has fallen about 20 percent in the last month. Analysts and investors say Charles Prince failed in his strategy to remake Citigroup into a "universal bank" that pulls in revenue from all kinds of financial services.

http://www.npr.org/templates/story/s...oryId=15994978

[NIOSA]

I notice that "Acorn" is being spoken of a little more now on the news. Hmmmm, maybe it'll catch on & people will see Obama & his little organizations for what they really are about.
A little more fuel for the fire.
http://www.spectator.co.uk/melanieph...or-obama.thtml

[preservanation]

I know some of us are familiar with ACORN and have been for a very long time.
It is astounding to me how many people especially lib dems are absolutely clueless about them.

Begs the question; "what else are they ignorant about?"

[NIOSA]

Originally Posted by preservanation

I know some of us are familiar with ACORN and have been for a very long time.
It is astounding to me how many people especially lib dems are absolutely clueless about them.

Begs the question; "what else are they ignorant about?"

They're aware, it's just that some of them want that type of idiot & his little gangs in the WH.

[william the wierd]

ACORN is the one thing that may sink Obama.

[NIOSA]

Originally Posted by william the wierd

ACORN is the one thing that may sink Obama.

& Public Allies if it's ever looked into. But for sure ACorn is going to cause him some headaches. Acorn will hopefully cause Franks & Dodd some problems as well since it was they that tried to get the handout to them in the bailout.

[Drocket]

Damn niggers! They're the cause of all the world's problems! Oh, wait, we're not supposed to actually come out and say that, just hint at it broadly.

Sorry, but the real cause of this meltdown was the deregulation that removed the firewalls in the banking industry. Reselling loans as investments has long been a profitable activity for banks, but there's a limited number of good loans that people are willing to invest in. Once the firewalls were gone, though, there was absolutely nothing standing in the way of banks simply making a bunch of bad loans, calling them good (which previously wouldn't have been possible because there were simply too many people involved to get away with it), and selling them to each other for massive profit. Which they did. Over and over. And when those bad loans, shockingly, didn't get paid back, well, here we are.

[NIOSA]

Originally Posted by Drocket

Damn niggers! They're the cause of all the world's problems! Oh, wait, we're not supposed to actually come out and say that, just hint at it broadly.

Sorry, but the real cause of this meltdown was the deregulation that removed the firewalls in the banking industry. Reselling loans as investments has long been a profitable activity for banks, but there's a limited number of good loans that people are willing to invest in. Once the firewalls were gone, though, there was absolutely nothing standing in the way of banks simply making a bunch of bad loans, calling them good (which previously wouldn't have been possible because there were simply too many people involved to get away with it), and selling them to each other for massive profit. Which they did. Over and over. And when those bad loans, shockingly, didn't get paid back, well, here we are.

Maude Hurd is a part of the problem.

http://countusout.wordpress.com/2008...r-wall-street/

[Drocket]

Originally Posted by NIOSA

Maude Hurd is a part of the problem.

http://countusout.wordpress.com/2008...r-wall-street/

So, happen to have anything more concrete than a statement from him saying that he thinks the government should do more than just make the people responsible for the mess obscenely rich?

[PostmodernProphet]

Originally Posted by Drocket

Damn niggers! They're the cause of all the world's problems! Oh, wait, we're not supposed to actually come out and say that, just hint at it broadly.

Sorry, but the real cause of this meltdown was the deregulation that removed the firewalls in the banking industry. Reselling loans as investments has long been a profitable activity for banks, but there's a limited number of good loans that people are willing to invest in. Once the firewalls were gone, though, there was absolutely nothing standing in the way of banks simply making a bunch of bad loans, calling them good (which previously wouldn't have been possible because there were simply too many people involved to get away with it), and selling them to each other for massive profit. Which they did. Over and over. And when those bad loans, shockingly, didn't get paid back, well, here we are.

sorry Drocket, but suing Citibank to force them to provide more subprime loans is NOT deregulation, it is government forcing banks to act in a particular way.....