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Ending Subprime Lending: Bush, Big Banks Set to Make Historic Move
Compiled by the DiversityInc staff
November 30, 2007
Ending Subprime Lending: Bush, Big Banks Set to Make Historic Move
The Bush administration and major companies that have suffered financial losses from their involvement in the subprime market are close to agreeing to a plan that could temporarily freeze interest rates on certain troubled subprime home loans. One possible scenario involves up to a seven-year freeze on interest rates. The accord could reassure investors and trapped homeowners, both of whom are anxious as interest rates on more than two million adjustable mortgages are scheduled to jump over the next two years, reports The Wall Street Journal. While details of the plan are still being worked out, Treasury officials say financial institutions are likely to divide subprime borrowers into three groups: those who can continue to make their payments despite a rate-hike, those who could keep their homes if the maturity date on their loans were extended, and those who can't afford their mortgages even if rates remain steady. Approximately 6.6 percent of subprime mortgages were in foreclosure as of August, according to First American Loan Performance.
(See also: Blacks, Latinos Remain Top Targets for Subprime Lenders and Subprime Mortgage Mess: The Diversity Link)
Undocumented Immigrants Take Class on Avoiding Arrest, Knowing Their Rights
Over the past two years, states have beefed up their searches for undocumented immigrants, often resorting to home and workplace raids. Now, immigration advocates are teaching immigrants about their constitutional rights against unreasonable searches. Gloria Contreras-Edin of Centro Legal has held nearly two dozen of these seminars since an immigration raid in a Minnesota prairie town last spring, reports National Public Radio. Contreras-Edin and others discourage attendees from talking about their status while at work if they are undocumented and report that 200,000 immigrants were deported last year.
(See also: How Does Your State Measure Up on Immigration?)
Top Woman Exec/Former 'CEO Heir Apparent' Ousted From Morgan Stanley
Morgan Stanley ousted its co-president Zoe Cruz yesterday after the firm suffered more than $3.7 billion in mortgage-related losses. Cruz, one of the highest-ranking women on Wall Street, appeared to have weathered the storm that claimed both E. Stanley O'Neal's and Charles Prince's jobs, and her departure was unexpected. In a statement, Cruz said, "It has been a real privilege for me to spend the past 25 years at this great firm while working alongside of and learning from some of the smartest and most talented people in the business." Cruz, who is retired effective immediately, will be succeeded by two new co-presidents, reports The New York Times. Read Chief Executive Officers: Statistics on DiversityInc.com for more.
(See also: Why Are So Few CEOs People of Color and Women? and Dick Parsons to Step Down, 2nd Black CEO to Resign in a Week!)
'Don't Ask, Don't Tell' Turns 14
Today marks the 14th anniversary of the "don't ask, don't tell," military policy that allowed gay men and lesbians to serve in the military but mandated they keep their orientation a secret. The retired officer data shows that 65,000 gay men and lesbians now serve in the American armed forces and that there are more than one million gay veterans, reports The New York Times. The Human Rights Campaign is partnering with Servicemembers United, Log Cabin Republicans, Servicemembers Legal Defense Network and Liberty Education Forum to honor the 12,000 solders who were discharged under the "don't ask, don't tell" policy in Washington, D.C., Nov. 30 through Dec. 2. For more information on the "Legacy of Service" event, click here.
(See also: The Personal Horror of 'Don't Ask, Don't Tell')
Funding Pinch Threatens Food Banks This Holiday Season
The holiday season will be tight for food banks across the United States as many are tightening their financial belts and rationing supplies. Experts attribute the shortage to an unusual combination of factors, including rising demand and a sharp drop in federal supplies of excess farm products, reports The New York Times. According to the Agricultural Department, supplies from the surplus program dropped to $67 million last year, from $154.3 million in 2005 and $233 million in 2004.
(See also: At Thanksgiving, Help Those in Need)
Immigrant Grandchildren Grasp English More Easily
Third-generation Latino immigrants are more fluent then their grandparents and parents, reports the Pew Hispanic Center. The study shows that only 23 percent of first-generation immigrants from Spanish-speaking countries said they spoke English very well versus 94 percent for their grandchildren, reports The New York Times. The survey was based on an analysis of six surveys conducted from April 2002 to October 2006 that polled more than 14,000 Latino adults ages 18 and older.
French Riots Spurred by Ethnic Tensions
French President Nicolas Sarkozy voiced his disapproval on Wednesday for the cultural-tension-driven riots that broke out in Paris last weekend. Sarkozy declared the rioters would be brought to justice, and he condemned the act, saying, "What has happened is absolutely unacceptable," reports National Public Radio. The riots erupted after two teens' motor scooter collided with a police car and police allegedly left without helping the wounded teens, who later died.
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