‘Credit-market discrimination, subprime loans, payday lending, and foreclosures: Ethical and legal dilemmas in the era of financial securitization’
This talk, which will be delivered by Professor Gary Dymski, Leeds University Business School summarizes several decades of policy-focused research on the operation of credit markets in lower-income and minority communities in US inner-city areas.
These decades have seen a transformation in nature of lending in these areas and, in turn, in the legal and ethical dilemmas and questions that are posed.
The initial phase involved primarily bank- and thrift-based credit-market redlining and discrimination, with special attention to mortgage markets. This evolved into securitization-based lending arranged by loan brokers and megabanks: this new approach led to various forms of predatory lending, including subprime mortgages and payday lending.
Dilemmas of regulatory oversight were posed then that have not yet been solved. Further, the very securitization process has involved the creation of supra-national legal rights for investors that pose challenges to sovereign national law. In effect, financial globalization threatens to supersede national regulatory and legal authority. The subprime crisis has clarified some of the key links but not resolved them.
1 CPD point – Law Society; Bar – application pending.
School of Law
The Liberty Building
University of Leeds
The Liberty Building is number 16 on the campus map.