Tag Archive | "chicago"

UPDATED: The End of Newspapers

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A special note from the Editor of MediaCircus.com:  Personally, when people ask — “are you recycling your newspapers?” and since I don’t even get a newspaper and haven’t for over 15 years, I’m doing my recycling part by not even subscribing.  Amen.

Sun-Times Files for Bankruptcy

Sun-Times Media, the parent company of The Chicago Sun-Times newspaper, said Tuesday that it had filed for Chapter 11 bankruptcy protection and hired an investment bank to explore possible asset sales.

The company said it would continue to operate its 59 newspapers and various Web sites as it goes through the bankruptcy process. The company has retained Rothschild, an investment bank, to commence a process for the sale of assets, the company said. The bankruptcy petition was filed in Delaware.

The Sun-Times is the second Chicago publishing company to seek bankruptcy protection. The newspaper’s crosstown rival, the Chicago Tribune Company, which publishes The Chicago Tribune and The Los Angeles Times, filed for court protection in December to reduce its crushing debt load.

The Sun-Times has a weekday circulation of 313,000 and a Sunday circulation of 256,000. The Tribune’s circulation was 516,000 daily and 865,000 for Sunday.

The Sun-Times listed assets of $479 million and debts of $801 million.

Chicago is one of a dwindling number of large United States cities to have two major newspapers. Last month, one of Denver’s two newspapers, The Rocky Mountain News, shut down, while one of Seattle’s two newspapers, The Seattle Post-Intelligencer, recently became an online-only publication.

UPDATE:  Kansas City Star will combine, reduce number of selections

The Kansas City Star plans to combine its main news and local sections — along with its business section four days a week — into a single section, starting in the next week to 10 days, according to a Star advertising department client e-mail.

The Star will combine its business section on Wednesday, Thursday, Friday and Saturday into the new single section, according to the e-mail. The paper’s Tuesday business tabloid section will continue as a stand-alone section.

The Star will combine its sports and classified sections every day except Sunday.

 

UPDATED: Obama Sued Citibank Under CRA to Force it to Make Bad Loans

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Do you remember how we told you that the Democrats and groups associated with them leaned on banks and even sued to get them to make bad loans under the Community Reinvestment Act which was a factor in causing the economic crisis (see HERE ) … well look at what some fellow bloggers have dug up while researching Obama’s legal career. Looks like a typical ACORN lawsuit to get banks to hand out bad loans.

In these lawsuits, ACORN makes a bogus claim of Redlining (denying poor people loans because of their ethnic heritage). They protest and get the local media to raise a big stink. This stink means that the bank faces thousands of people closing their accounts and get local politicians to lobby to stop the bank from doing some future business, expansions and mergers. If the bank goes to court, they will win, but the damage is already done because who is going to launch a big campaign to get the bank’s reputation back?

It is important to understand the nature of these lawsuits and what their purpose is. ACORN filed tons of these lawsuits and ALL of them allege racism.

Thanks to the IUSB Vision Weblog for providing additional details of this story.

We pulled the docket down, but here’s a brief for your summary:

Case Name
Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance
Docket / Court 94 C 4094 ( N.D. Ill. ) FH-IL-0011
State/Territory Illinois
Case Summary
Plaintiffs filed their class action lawsuit on July 6, 1994, alleging that Citibank had engaged in redlining practices in the Chicago metropolitan area in violation of the Equal Credit Opportunity Act (ECOA), 15 U.S.C. 1691; the Fair Housing Act, 42 U.S.C. 3601-3619; the Thirteenth Amendment to the U.S. Constitution; and 42 U.S.C. 1981, 1982. Plaintiffs alleged that the Defendant-bank rejected loan applications of minority applicants while approving loan applications filed by white applicants with similar financial characteristics and credit histories. Plaintiffs sought injunctive relief, actual damages, and punitive damages.

U.S. District Court Judge Ruben Castillo certified the Plaintiffs’ suit as a class action on June 30, 1995. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 322 (N.D. Ill. 1995). Also on June 30, Judge Castillo granted Plaintiffs’ motion to compel discovery of a sample of Defendant-bank’s loan application files. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 338 (N.D. Ill. 1995).

The parties voluntarily dismissed the case on May 12, 1998, pursuant to a settlement agreement.
Plaintiff’s Lawyers Alexis, Hilary I. (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Childers, Michael Allen (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Clayton, Fay (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Cummings, Jeffrey Irvine (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Love, Sara Norris (Virginia)
FH-IL-0011-9000
Miner, Judson Hirsch (Illinois)
FH-IL-0011-7500 | FH-IL-0011-9000
Obama, Barack H. (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Wickert, John Henry (Illinois)
FH-IL-0011-9000

UPDATE :  Hotair.com comments on this story HERE .

New York Post Article HERE :

THE seeds of today’s financial meltdown lie in the Community Reinvestment Act – a law passed in 1977 and made riskier by unwise amendments and regulatory rulings in later decades.

CRA was meant to encourage banks to make loans to high-risk borrowers, often minorities living in unstable neighborhoods. That has provided an opening to radical groups like ACORN (the Association of Community Organizations for Reform Now) to abuse the law by forcing banks to make hundreds of millions of dollars in “subprime” loans to often uncreditworthy poor and minority customers.

Any bank that wants to expand or merge with another has to show it has complied with CRA – and approval can be held up by complaints filed by groups like ACORN.

In fact, intimidation tactics, public charges of racism and threats to use CRA to block business expansion have enabled ACORN to extract hundreds of millions of dollars in loans and contributions from America’s financial institutions .

The Woods Fund report makes it clear Obama was fully aware of the intimidation tactics used by ACORN’s Madeline Talbott in her pioneering efforts to force banks to suspend their usual credit standards. Yet he supported Talbott in every conceivable way. He trained her personal staff and other aspiring ACORN leaders, he consulted with her extensively, and he arranged a major boost in foundation funding for her efforts.

And, as the leader of another charity, the Chicago Annenberg Challenge, Obama channeled more funding Talbott’s way – ostensibly for education projects but surely supportive of ACORN’s overall efforts.

UPDATE 2: Fox News gets on the story

UPDATE 3: CNS News Analysis

Under the Clinton administration, federal regulators began using the act to combat “red-lining,” a practice by which banks loaned money to some communities but not to others, based on economic status. “No loan is exempt, no bank is immune,” warned then-Attorney General Janet Reno. “For those who thumb their nose at us, I promise vigorous enforcement.”

The Clinton-Reno threat of “vigorous enforcement” pushed banks to make the now infamous loans that many blame for the current meltdown, Richman said. “Banks, in order to not get in trouble with the regulators, had to make loans to people who shouldn’t have been getting mortgage loans.”

This threat combined with the government backing of Fannie and Freddie set the stage for the current uncertainty, because the “banks could just sell the loans off to Fannie or Freddie,” who could buy them with little regard for negative financial outcomes, Richman said.

http://www.cnsnews.com/public/content/article.aspx?RsrcID=36048


UPDATE 4: Obama Audio saying it was a Good Idea to give people loans that couldn’t afford them.

We told you before how Obama sued banks with so called “community organizers” to force the banks to give bad loans to people who couldn’t afford them. Well now we have the audio of Obama saying in 2007 that giving sub-prime loans to people who couldn’t afford them is a good idea.

UPDATE 5: So what really (no really ) cause this economic crisis?


Referenced / Associated News Article:

Government Engineered Mortgage Crisis: No Racism Here, Move Along.

Barack Obama’s Fannie Mae, Freddie Mac Connection

[tags]racism, acorn, barack obama, clinton, fannie mae, freddie mac, banks, refinance, mortgage, economic crisis,community reinvestment act, cra, scandal, Madeline Talbott, lawsuit,citibank, chicago, loan applications, minorities, credit history[/tags]