Morgan Stanley facing class-action discrimination lawsuit
Posted at: 10/15/2012 1:56 PM
Financial services giant Morgan Stanley is facing a class-action discrimination lawsuit.
The American Civil Liberties Union is accusing the company of discriminating against black homeowners. The case revolves around five Detroit residents who got loans from a subprime lender called New Century.
The lawsuit claims Morgan Stanley pushed New Century to issue loans with no concern about risk because it made its profit at the outset.
New Century later collapsed.