Community organizers and organizations like National Community Reinvestment Coalition, a "community-based organization," used the 1977 Community Reinvestment Act to pressure banks and other financial institutions to grant mortgages to people with "insufficient borrower income levels." Now that so many of those loans — predictably — have gone bad, the Coalition has filed suit against two Wall Street rating services, saying the firms "knew or should have known" that the loans would go into default at a high rate. Thus the Coalition is suing the rating services for making it possible for the financial institutions to do what the Coalition was pressuring them to do. (!)
Seems to me the news is providing more and more "through the looking glass" kinds of stuff.
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