Los Angeles sues JPMorgan over "predatory loans"

Officials of the city of Los Angeles have filed a lawsuit against the country's largest bank for tricking cash-strapped minorities into taking out predatory loans. City Attorneys claim JP Morgan Chase coaxed members of minority groups into taking risky loans, pushing the region into a foreclosure crisis. The foreclosures, in turn, added to city services expenses and caused a depreciation of property values. The City Attorneys claim the so-called mortgage discrimination has been in effect since 2004, imposing different terms or conditions on a discriminatory and legally prohibited basis. JP Morgan denies the charges. In the past, similar complaints have been filed against other major US banks, such as Wells Fargo, Bank of America, and Citigroup.