Vision: The 5 Smartest Policies Enacted by American Cities in 2010
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Cleveland Sues the Banks
It's the story of the decade: Ameriquest, Wells Fargo, Goldman Sachs, and other banks raked in record profits speculating on mortgages, pushing more and riskier home loans onto borrowers who clearly never had the means to pay them back. Then the house of cards collapsed. Foreclosure rates soared and cities were left to pick up the pieces. Arson, property deterioration, and crime in neighborhoods devastated by foreclosure imposed steep costs on municipalities just as the recession decimated their tax base. So some cities decided to fight back. The 2010 documentary "Cleveland vs. Wall Street" tells the story of one such fight, as the city of Cleveland sued more than twenty major banks for setting off a chain of events with negative consequences "entirely foreseeable by Wall Street." When a federal appeals court rejected the case earlier this year, Cleveland announced it would continue its fight to the Supreme Court. For striving to hold Wall Street accountable for the devastation it wreaked in its neighborhoods, Cleveland's suit wins a place on our best policy of 2010 list
John Petro contributed to this post.
Amy Traub is Associate Director of Research for the Drum Major Institute for Public Policy.