January 08, 2008

The New York Times reports on a hilarious display of legal incompetence by the new administration of Baltimore, the self-styled "City that Reads" (not).

In the suit, Mayor Sheila Dixon joined with the City Council to ask that the court bar Wells Fargo Bank from charging higher fees to black borrowers. It seems that the suit alleges that:

1. The bank allowed subprime loans in Baltimore;
2. These loans have defaulted in large numbers;
3. The defaults have led to foreclosures, and to a lowering of property values, hence to a lowering of the tax base to be tapped by Baltimore City.

Let's see, hmmm. You shouldn't have loaned money to unqualified borrowers, and now that you insist they pay back their promised amounts you are harming the city they were fortunate enough to own property (thanks to you) in. Legal incompetence and Economic incompetence all rolled together in one suit. Nicely done, your Honor.