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July 26, 2013

Judge Clears Discrimination Suit Against Morgan Stanley 
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A federal judge has cleared a lawsuit accusing the Wall Street giant
Morgan Stanley of encouraging the targeting of African-American
homeowners in Detroit. The plaintiffs in the case include five black
Detroit residents who say Morgan Stanley helped subprime mortgage lender
New Century Mortgage Company issue loans likely to push borrowers into
foreclosure. In his ruling, U.S. District Judge Harold Baer tied
Detroit's current bankruptcy woes to the actions of major banks,
writing: "It is not difficult to conclude that Detroit's current
predicament, at least in part, is an outgrowth of the predatory lending
at issue here."

 

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