Learn how Wall Street encouraged practices that endangered the dreams and well-being of American communities of color in order to make quick profits.
The foreclosure crisis has hurt communities and families all over the country, but its impact has not been equal. Black and Latino families have absorbed especially harsh consequences, and the effects have rippled through entire communities and exacerbated wealth gaps between white and minority families. Nearly 8-percent of both blacks and Latinos who took out mortgages recently have lost their homes to foreclosure. Only 4.5-percent of whites did.
In Adkins v. Morgan Stanley, the ACLU, Lieff Cabraser Heimann & Bernstein, and the National Consumer Law Center is holding Morgan Stanley accountable for its collaboration with the subprime lender New Century, which supplied the bank with a steady stream of irresponsible, high-risk loans issued in neighborhoods that were particularly vulnerable to economic ruin. Although practices like these inflicted damages in low and middle-income communities across the nation, Detroit was a particularly vulnerable.