Supreme Court says cities can sue big banks over housing bubble damages

[mahatmakanejeeves]

Source: Washington Post

Supreme Court says cities can sue big banks over housing bubble damages

Robert Barnes

May 1 at 11:39 AM 

The Supreme Court ruled Monday that cities may sue big banks over allegedly discriminatory lending practices that they say led to urban blight, but added that they must meet higher standards to prove a direct relationship. ... The result was a mixed one for Miami, which was at the forefront of a move by cities nationwide that have sued big lending institutions under the federal Fair Housing Act. ... A majority of the court agreed that cities, not just individuals, can sue under the FHA.

{Supreme Court seems to favor Miami suing banks whose lending practices led to neighborhood blight} (1)

This court has repeatedly written that the FHAs definition of person aggrieved reflects a congressional intent to confer standing broadly, Justice Stephen G. Breyer wrote for himself and four other justices.
....

Breyer, ... was joined by Chief Justice John G. Roberts Jr. and liberal justices Ruth Bader Ginsburg, Sonia Sotomayor and Elena Kagan. ... But that doesnt mean the city can prevail without proving that the banks practices were directly responsible. ... The housing market is interconnected with economic and social life. A violation of the FHA may, therefore, be expected to cause ripples of harm to flow far beyond the defendants misconduct, Breyer wrote.
....

Three justices disagreed. Justices Anthony M. Kennedy and Samuel A. Alito Jr. signed on to Justice Clarence Thomass opinion that Miami should not be able to bring suit under the FHA. Even if it could, he wrote, the citys injuries are too remote from the injurious conduct it has alleged.

The case is Bank of America v. Miami.
....

Robert Barnes has been a Washington Post reporter and editor since 1987. He has covered the Supreme Court since November 2006. Follow @scotusreporter
https://twitter.com/scotusreporter

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(1) https://www.washingtonpost.com/politics/courts_law/supreme-court-seems-to-favor-miami-suing-banks-whose-lending-practices-led-to-neighborhood-blight/2016/11/08/fd2d124a-a5e5-11e6-ba59-a7d93165c6d4_story.html

Read more: https://www.washingtonpost.com/politics/courts_law/cities-may-sue-big-banks-over-predatory-lending-damage-supreme-court-rules/2017/05/01/cf8c108a-2e79-11e7-9534-00e4656c22aa_story.html

[2naSalit]

1. Good! ...nt

[Snotcicles]

2. A violation of the FHA may, therefore, be expected to cause ripples of harm to flow far beyond the

defendants misconduct, Breyer wrote.
.... What, like drawing back those bonuses they paid out with taxer payer bailout monies?

[mopinko]

3. hope this news is making lisa madigan's day.

illinois ag has gone after banks as hard as she can.

[JudyM]

4. Good - will provide incentive toward responsible behavior while regulatory constraints weaken under

this administration/Congress.

Too bad its reach will be limited to FHA. There needs to be a lot more internalizing of costs in our economy. Despicable that BP is going on its merry way raking in money while they've trashed the Gulf.

[Massacure]

5. Interesting mix of votes

The Roberts and Kennedy votes feel backwards.