Supreme Court Probes Whether Miami Can Sue Banks Over Foreclosure Crisis

Should Bank of America and Wells Fargo be on the hook for potentially billions of dollars in tax revenue Miami and other cities lost after property values plunged in minority neighborhoods due to shoddy lending practices and foreclosures?

And if so, why can’t Miami sue for lost tourist revenue? Sales taxes? Why can’t the corner store sue the banks for the money its customers stopped spending when they lost their homes? Where does the chain of causation end?

Those were among the tough questions U.S. Supreme Court justices asked today in oral arguments overBank of America v. Miami, which tests the limits of who can sue under the expansive Fair Housing Act.

Read on.

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