BIRMINGHAM, Ala. (CN) - Citigroup, Argent Mortgage Co., and Countrywide Financial devastated Birmingham's tax base and violated Fair Hosing laws by "reverse redlining" black neighborhoods, the city claims in Federal Court. Instead of denying black people credit, the defendants allegedly targeted them for predatory loans, focusing today's wave of foreclosures disproportionately in black neighborhoods.
The city demands punitive damages for outrage, misrepresentation, wantonness, negligence and violations of the Fair Housing Act.
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