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Mike Bloomberg once blamed banks making loans to black Americans as the cause of the 2008 financial crash


Added 02-13-20 10:14:02am EST - “In resurfaced comments from September 2008, Bloomberg said the end of "redlining" put pressure on banks to make riskier loans for homeowners of color.” - Businessinsider.com

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Posted By TheNewsCommenter: From Businessinsider.com: “Mike Bloomberg once blamed banks making loans to black Americans as the cause of the 2008 financial crash”. Below is an excerpt from the article.

Over a decade ago as Wall Street financial giants verged on collapse, then-New York Mayor Mike Bloomberg tried diagnosing the root cause of the economic chaos.

In newly resurfaced comments during a Georgetown University forum in September 2008, he pointed a finger toward the ending of a discriminatory practice against black Americans known as "redlining."

"It all started back when there was a lot of pressure on banks to make loans to everyone," the billionaire Democratic presidential candidate said at the time. "Redlining, if you remember, was the term where banks took whole neighborhoods and said, 'People in these neighborhoods are poor, they're not going to be able to pay off their mortgages, tell your salesmen don't go into those areas.'"

Redlining refers to a historic government-backed practice designed to segregate black Americans into separate neighborhoods and bar them from access to home loans.

He went on: "And then Congress got involved — local elected officials, as well — and said, 'Oh that's not fair, these people should be able to get credit.' And once you started pushing in that direction, banks started making more and more loans where the credit of the person buying the house wasn't as good as you would like."

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