Saturday, March 1, 2014
"Where Wall Street Meets C Street: Reimagining Civil Rights Enforcement of Large Financial Institutions"
The title of this post comes from this recent paper arguing that the failures of the Equal Credit Opportunity Act's and the Fair Housing Act's enforcement structures make them ripe for reconsideration and modification. Here's the abstract:
There are persistent disparities in access to credit by racial and ethnic minorities, including both the total denial of credit and the extension of credit on inferior terms than those given to other individuals with comparable credit qualifications. While there is significant normative agreement that such discrimination is wrong, that agreement fractures over the attendant issues of how widespread such discrimination is and how to design and implement an enforcement structure that addresses discrimination based on the economic realities of lending by financial institutions. Thus far, the major civil rights statutes governing discrimination in access to credit, the Equal Credit Opportunity Act and the Fair Housing Act, have proven ineffective at both deterring such discrimination and in holding financial institutions accountable for violations. This paper sets out to re-consider the societal and economic costs of such discrimination, and to propose another system of enforcement informed by the securities and banking laws that emphasizes increasing transparency, frontline enforcement, and greater accountability for violations.
CRL&P related posts:
- Settlement in Fair Housing Case—A Sigh of Relief
- Formalism and Employer Liability Under Title VII
- HUD finds Dallas discriminates against minorities in affordable-housing practices