The High Court will hear a case regarding the power of states to investigate bank discrimination.
Wired PR News – The Supreme Court is set to hear a case regarding the power of states to investigate discriminatory lending practices of banks. As reported by the Associated Press (AP), the High Court will hear arguments pertaining to a decision by a federal appeals court that bars states from conducting investigations into bank lending practices.
As noted by the AP, the case stems from former New York Attorney General Elliot Spritzer seeking to investigate whether banks charged higher mortgage home loan interest rates to minorities. Although the practice of discrimination is banned under state and federal laws, a judge ruled that Spritzer could not enforce certain laws against national banks.
According to the report, all 50 states are in support of having the appeals court decision overturned. States are quoted by the AP as stating, “Moreover, the current economic crisis, caused in large part by reckless subprime mortgage lending, has demonstrated the need for consumer protection and regulatory oversight in the area of mortgage lending.”