LA's Lawsuit Against Wells Fargo Gains Further Steam

The City of Los Angeles' suit against Wells Fargo (previously covered here) made further progress this week:

"A federal judge has denied Wells Fargo's latest bid to end a lawsuit brought by the Los Angeles city government accusing the bank of discriminatory lending that led to a wave of foreclosures among minority borrowers.

In a ruling made public on Monday, U.S. District Judge Otis Wright denied the San Francisco-based bank's motion to have an appeals court decide whether Los Angeles has legal standing to recover damages under the U.S. Fair Housing Act.

Wells is one of four banks sued by Los Angeles for allegedly giving minorities mortgage loans they could not afford, causing defaults, lower property values and neighborhood blight.

The city is seeking damages for lost tax revenue and increased city expenses in affected neighborhoods."  (continue reading)