- Citigroup (C) and Wells Fargo (WFC) find themselves the subject of a lawsuit by the city of Los Angeles which claims lost tax revenue due to their alleged discriminatory mortgage lending practices.
- Citi and Wells "engaged in a continuous pattern and practice of mortgage discrimination in Los Angeles since at least 2004 by imposing different terms or conditions on a discriminatory and legally prohibited basis," says L.A. city attorney Mike Feuer in the filing. "The misconduct has profound financial consequences for the cities in which mortgaged properties exist, and banks should be responsible for those financial consequences. Banks should reimburse such cities for lost tax revenues due to discriminatory lending."
Citi and Wells Fargo sued by L.A. over lending practices
Dec 6 2013, 07:27 ET