LA Says Citi, Wells Fargo Mortgages Crushed Tax Revenue

Law360, New York (December 6, 2013, 1:32 PM EST) -- Los Angeles launched two suits Thursday accusing Wells Fargo & Co. and Citigroup Inc. of flooding minority neighborhoods with discriminatory mortgage loans that decimated local property values, sending property tax revenues down and government services costs soaring.

The suits, filed in California federal court by Los Angeles City Attorney Mike Feuer, allege that the banks targeted minority-dominated neighborhoods in the city with subprime mortgages and loan products with predatory terms and conditions in a process known as "reverse redlining."

While the banks had historically engaged in...
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