Boston, MA 06/03/2014 (wallstreetpr) – May 29, 2014 was indeed a disappointing day for the Banco Santander, S.A. (ADR) (NYSE:SAN). The company’s U.S. unit was prosecuted by the city of Providence, Rhode Island.
Santander’s U.S. unit sued:
The discrimination complaint by the U.S. cities and countries against the lender company is one of the many instances filed in the country. Banco Santander, S.A. (ADR) (NYSE:SAN) has been taken under lawsuit after its stopped issuing mortgages in the minority communities. According to the complaint lodged on May 29, 2014 in Providence federal court Santander Bank was charged for the discrimination lawsuit. The company has been asked for millions of dollars as per the lawsuit.
The city lawyer says:
The city lawyer, John Relman stated on a telephonic interview that it was an alerting pronouncement to the Madrid based lender for violating the fair-lending laws of America and to establish a wealthy strategy targeting white areas for growth and minority neighbourhood for disinvestment.
Various companies involved in such unfairness:
Similar complaint has been filed by the Miami and Los Angeles municipalities on Bank of America Corp, Wells Fargo & Co., Citigroup Inc for discriminating Hispanic and Black areas as ‘no loan zones,’ refusing the minority communities even though they are well qualified for better loans.
The same trend encompasses Chicago and portions of Atlanta where HSBC Holding Plc and Bank of America were charged for discrimination. These banks denied the claim, which supposedly violates the Amarican Fair Housing Act of 1968.
The mayor said:
A spokeswoman of Santander, Mary Ellen Higgins did not contribute her words on the lawsuit incident. Banco Santander, S.A. (ADR) (NYSE:SAN) is accused of biasness on minority communities from 2009-2012, depriving the minorities of mortgages. The issue also damaged the attempt to bar the racial segregation in the areas, stated the city lawyer. He added that the lawsuit against the company comprises of millions of dollars in damage. The mayor of the providence, Angel Taveras also commented on the unfairness means done by the company.
