Cleveland Loses Its Lawsuit Against The Street

Did Wall Street investment banks create a “public nuisance” in the city of Cleveland with their free-wheeling mortgage assembly line? 

The courts just said no, as the city with 4 of the top 21 most foreclosure-laden zip codes was denied an appeal.

From CNNMoney:

But judges for the U.S. Court of Appeals for the Sixth Circuit dashed their hopes and rejected the notion that banks named in the suit — including Goldman Sachs and JPMorgan Chase as well as now defunct firms such as Countrywide or Bear Stearns — were responsible.

Rather, they suggested that at least part of the blame lay with the companies that sold the mortgages as well as the individuals who signed up for the loans.

“The injuries that Cleveland alleges could have been caused by many other factors unconnected to the Defendants’ conduct,” wrote Judge Richard Suhrheinrich.

No word on whether Cleveland will initiate a suit against former Fed Chairman Alan Greenspan for being the architect of Loanapalooza in the first place.

And how about the last name of that judge?  Did he get in the line for tough surnames or what?

Source:

Wall Street 1, Cleveland 0  (CNNMoney)