The city of Sacramento has filed a federal lawsuit against Wells Fargo alleging the banking giant steers African American and Latino borrowers into high-risk and high-cost mortgages.
The suit, filed Friday in U.S. District Court in Sacramento, also seeks monetary damages against Wells Fargo, alleging the mortgages forced the city “to divert resources intended for other programs” to provide services to blighted neighborhoods impacted by the lending practices.
“These illegal practices suppressed property values in minority and low income communities in Sacramento, reduced the city’s property tax revenues, and increased the cost of providing municipal services such as police, fire fighting and code enforcement,” the city’s lawsuit reads.
IT’S BEEN MORE THAN A DECADE since South Florida Rep. Mark Foley was forced out of Congress for sending sexual text messages to teenage boys.
But Foley tapped his congressional campaign fund to dine on the Palm Beach social circuit four times in early 2017, ending with a $450 luncheon at the Forum Club of the Palm Beaches.
Then there’s baseball-star-turned-senator Jim Bunning of Kentucky. He paid his daughter $94,800 from campaign money in the four years after he left office, only stopping when he’d bled his fund dry.
And over the past 17 months, political advisor Dylan Beesley paid his firm more than $100,000 from the campaign account of Hawaii Congressman Mark Takai for “consulting services.”
It’s hard to imagine what Beesley advised. Takai was dead that whole time.
In their political afterlife, former politicians and their staffers are hoarding unspent campaign donations for years and using them to finance their lifestyles, advance new careers and pay family members, an investigation by the Tampa Bay Times, 10News WTSP and TEGNA-owned TV stations found.
Their spending makes a mockery of one of the fundamental principles of America’s campaign finance laws: Donations must be spent only on politics, not politicians’ personal lives.
Times/WTSP reporters analyzed more than 1 million records detailing the spending of former U.S. lawmakers and federal candidates. They found roughly 100 of these zombie campaigns, still spending even though their candidate’s political career had been laid to rest.
During his State of the Union speech, Trump touted the recent stock market boom as proof of how well the U.S. is doing. However, as NEP’s Bill Black explains, the boom has nothing to do with new investment. You can view with a transcript
Source: New Economic Perspectives
From a decades-long strategy of exploiting state sales tax loopholes to its ongoing “HQ2” sweepstakes, Amazon’s leaders have rarely turned down a chance to use the tax system as the source of their competitive advantage.
The online retail giant has built its business model on tax avoidance, and its latest financial filing makes it clear that Amazon continues to be insulated from the nation’s tax system. In 2017, Amazon reported $5.6 billion of U.S. profits and didn’t pay a dime of federal income taxes on it. The company’s financial statement suggests that various tax credits and tax breaks for executive stock options are responsible for zeroing out the company’s tax this year.
The company’s zero percent rate in 2017 reflects a longer term trend. During the previous five years, Amazon reported U.S. profits of $8.2 billion and paid an effective federal income tax rate of just 11.4 percent. This means the company was able to shelter more than two-thirds of its profits from tax during that five year period.
Fifty years after the federal Fair Housing Act banned racial discrimination in lending, African Americans and Latinos continue to be routinely denied conventional mortgage loans at rates far higher than their white counterparts.
This modern-day redlining persisted in 61 metro areas even when controlling for applicants’ income, loan amount and neighborhood, according to a mountain of Home Mortgage Disclosure Act records analyzed by Reveal from The Center for Investigative Reporting.
The yearlong analysis, based on 31 million records, relied on techniques used by leading academics, the Federal Reserve and Department of Justice to identify lending disparities.
It found a pattern of troubling denials for people of color across the country, including in major metropolitan areas such as Atlanta, Detroit, Philadelphia, St. Louis and San Antonio. African Americans faced the most resistance in Southern cities — Mobile, Alabama; Greenville, North Carolina; and Gainesville, Florida — and Latinos in Iowa City, Iowa.
No matter their location, loan applicants told similar stories, describing an uphill battle with loan officers who they said seemed to be fishing for a reason to say no.
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