ACLU to sue Morgan Stanley for making "predatory" loans to black people.

The NYT reports:

[T]he lawsuit claims, the bank went beyond the traditional role of an investment bank by requiring that the mortgage company churn out the wildly profitable loans that came with “dangerous” characteristics....

Rubbie McCoy, one of the five named plaintiffs in the lawsuit, took out a loan from New Century in 2006 with an adjustable rate starting at 12.14 percent, which could not fall below 10.75 percent. It came with “excessive fees and costs,” the suit said.

Ms. McCoy, a single mother, said she could not afford the payments, but the broker told her to “fudge” her income, the suit says. Now, she is fighting to save the Detroit home that she shares with her four children.

“Having a house was a way to keep my kids grounded,” Ms. McCoy said....