Civil Rights Group Warns Obama Against ‘Sweetheart Settlement’

Posted by Orb Staff on January 10, 2012 No Comments
Categories : Mortgage Servicing

10675_obama Civil Rights Group Warns Obama Against 'Sweetheart Settlement' New York-based civil rights group ColorOfChange.org has launched a campaign calling on the Obama administration to hold Wall Street banks accountable for their role in the creation of the housing crisis.

In a press statement, ColorOfChange.org – which identifies itself as the nation's largest African-American online political organization – warned that the potential for a ‘sweetheart settlement’ between the nation's major mortgage servicers and the federal government and the 50 attorneys general would ignore the problems facing the nation's homeowners – particularly African-Americans who were the target of a disproportionately high number of subprime loans.

‘The Obama administration has a critical choice to make,’ says Rashad Robinson, executive director of ColorOfChange.org. ‘The president can cut a deal that lets Wall Street off the hook, or he can commit to a full investigation into the banks and the damage they've caused. An investigation would create real accountability and move us on the road to recovery while preventing future reckless behavior from the banking and mortgage industry.

‘Our nation needs and deserves a full investigation, accountability and relief for the millions of people hurt during this crisis, and we cannot settle on a bad deal for America's economic future,’ Robinson adds. ‘We cannot remain silent, and we cannot accept a settlement that lets the banks responsible for this crisis off the hook.’

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