Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHedge Funds Buy Baltimore Debt, Steal Homes In Black Communities, Reap Millions of $'s
The death of Freddie Gray in police custody in Baltimore and the ensuing protests brought the nations attention to the economic devastation that continues to grip the city. Now, new data shows powerful hedge funds are profiting off of struggling families in Baltimore by buying up debts as small as $250, charging high interest rates, and taking their homes when they fail to pay. A report just released by the research and advocacy group HedgeClippers documents how the Wall Street hedge fund Fortress Investment Group and the Los Angeles-based Imperial Capital bought up hundreds of these small liens this year on everything from an unpaid water bills to delinquent property taxes and could take property worth tens of millions of dollars if the families cant pay.
Once the hedge funds buy up these small debts, they reap an 18 percent interest, according to the Baltimore-based research group The Abell Foundation. More fees pile up after four months, and if the families cant pay, they lose their homes. An analysis of those impacted in 2014 found the families had been living in their homes an average of 21 years. Half were elderly, more than a third were disabled, and the majority were African American.
(snip)
The hedge funds reaping these profits in Baltimore are also major donors in national elections.
Imperial Capitals directors have lavished money on Mitt Romney and other Republican candidates in past races. This year, Several employees of the Fortress Investment Group gave the maximum legal amount to Hillary Clintons campaign, and its director Michael Novogratz has poured hundreds of thousands of dollars into backing Robert Menendez (D-NJ), Charles Schumer (D-NY), and other Democrats in congressional races over the past few years.
Clinton, a beneficiary of the hedge funds generosity, recently said in a speech about Baltimores woes: Lets take on the broader inequities in our society. You cant separate out the unrest we see in the streets from the cycles of poverty and despair that hollow out those neighborhoods. Thinking back to the beginning of her career as a lawyer at the Childrens Defense Fund, she added, Our legal system can be and all too often is stacked against those who have the least power, who are the most vulnerable.
Think Progress
Once the hedge funds buy up these small debts, they reap an 18 percent interest, according to the Baltimore-based research group The Abell Foundation. More fees pile up after four months, and if the families cant pay, they lose their homes. An analysis of those impacted in 2014 found the families had been living in their homes an average of 21 years. Half were elderly, more than a third were disabled, and the majority were African American.
(snip)
The hedge funds reaping these profits in Baltimore are also major donors in national elections.
Imperial Capitals directors have lavished money on Mitt Romney and other Republican candidates in past races. This year, Several employees of the Fortress Investment Group gave the maximum legal amount to Hillary Clintons campaign, and its director Michael Novogratz has poured hundreds of thousands of dollars into backing Robert Menendez (D-NJ), Charles Schumer (D-NY), and other Democrats in congressional races over the past few years.
Clinton, a beneficiary of the hedge funds generosity, recently said in a speech about Baltimores woes: Lets take on the broader inequities in our society. You cant separate out the unrest we see in the streets from the cycles of poverty and despair that hollow out those neighborhoods. Thinking back to the beginning of her career as a lawyer at the Childrens Defense Fund, she added, Our legal system can be and all too often is stacked against those who have the least power, who are the most vulnerable.
Think Progress
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
4 replies, 1389 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (10)
ReplyReply to this post
4 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Hedge Funds Buy Baltimore Debt, Steal Homes In Black Communities, Reap Millions of $'s (Original Post)
Oilwellian
Sep 2015
OP
marmar
(77,077 posts)1. The United States of Corporate Kleptocracy
Oilwellian
(12,647 posts)2. That's exactly what it is, marmar
It also seems party leaders have no interest in stopping this predatory behavior.
Octafish
(55,745 posts)3. ''The hedge funds reaping these profits in Baltimore are also major donors in national elections.''
How the Haves and Have-Mores get ahead.
Waiting For Everyman
(9,385 posts)4. It's legalized theft
and it's being done in the rest of the state too, not only to AA's, and not only by these companies -- even homeowners associations are doing it a lot too in more affluent areas. Maryland is also a state which does not have a legal review for foreclosures. People can be swindled fast and easily by the sharks.