Topics

Bank of New York Company
Did the banks rip off Los Angeles?
Did the banks rip off Los Angeles?

Big U.S. banks have paid billions of dollars to settle claims by state and federal prosecutors that they trapped unsophisticated borrowers in disastrous subprime mortgages at the height of the housing boom. Now, some Los Angeles City Council members argue that their unsophisticated little burg was similarly victimized by two predatory lenders that sold the city complex risk-hedging investments called interest rate swaps. In response, the council passed a motion Wednesday that threatens to cut off business with the banks if they don't rescind the swaps contracts at no cost. But the city is no rube, and the predation is just conjecture at this point. While it's a good idea to try...

Loading