|
Claim: Barack Obama filed a lawsuit to require banks to "make loans to poor people."
Example: [Collected via e-mail, September 2008]
Origins: This item seeks to dump much of the blame for America's current economic woes on Barack Obama by claiming that as a young lawyer, Obama filed a lawsuit requiring financial institutions to lend money to
The 1994 case of Buycks-Roberson v. Citibank Fed. Sav. Bank had nothing to do with requiring lenders to do business with people "who could not show proof that they could pay the money back." The case was a class-action lawsuit against Citibank Federal Savings on behalf of a black Chicago woman, Selma Buycks-Roberson, who claimed she was unfairly denied a mortgage based on her race. The lawsuit sought to end the practice of redlining, a discriminatory practice by which banks, insurance companies, and other business institutions refuse or limit loans, mortgages, insurance, etc., based solely on the geographic area in which the applicant lives (a practice that commonly excludes minorities in inner-city neighborhoods, regardless of their income or ability to pay). Specifically, the lawsuit charged that Citibank "rejected loan applications of minority applicants while approving loan applications filed by white applicants with similar financial characteristics and credit histories." The case was eventually settled out of court, with some class members receiving cash payments and Citibank agreeing to help ease the way for low- and moderate-income people to apply for mortgages. Although Barack Obama was involved with the Buycks-Roberson case, he did not file the lawsuit, nor was he the lead attorney in the matter. He was a junior member of an eight-lawyer team that worked on the case:
Obama represented Calvin Roberson in a 1994 lawsuit against Citibank, charging the bank systematically denied mortgages to African-American applicants and others from minority neighborhoods.
Last updated: 5 October 2008
"I don't recall him ever standing up and giving an impassioned speech — it was a lot of behind-the-scenes stuff," said Fay Clayton, the lead lawyer on the case. "He was the very junior lawyer in that case," said attorney Robert Kriss. "He had just graduated from law school. I don't recall him being in court at any time I was there. I was the lead lawyer for Citibank and he was not very visible to me." On Feb. 23, 1995, Obama billed 2 hours and 50 minutes for an appearance before Judge Ruben Castillo on behalf of his client, and also for reviewing some documents in advance of a deposition. During his appearance before the judge, Obama said he would need more time to file a response to a motion, and the judge agreed. That was all Obama said during the half-hour hearing. Urban Legends Reference Pages © 1995-2010 by Barbara and David P. Mikkelson. This material may not be reproduced without permission. snopes and the snopes.com logo are registered service marks of snopes.com.  Sources:
|
|
