Buffett company settlement should be a blow to the 'compassionate billionaire' myth

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Billionaire investor Warren Buffett is often touted as a benevolent rich guy. So why did a company he owns pay a huge settlement in a lending discrimination case? - thereidout Blog

to prevent nonwhite people from moving into neighborhoods where white people live and to make homeownership difficult for nonwhites in general.

“Trident’s unlawful redlining activity denied communities of color equal access to residential mortgages, stripped them of the opportunity to build wealth, and devalued properties in their neighborhoods,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “This settlement ensures that significant lending resources will be infused into neighborhoods of color in and around Philadelphia that have historically experienced racial discrimination.

But the settlement conditions — which the Justice Department say amount to its second-largest redlining settlement ever — speak for themselves. The Buffett-owned company has agreed to invest $20 million to increase credit opportunities in predominantly nonwhite communities cited in the release, to employ at least four loan officers to serve those communities and to pay a $4 million fine.It seems to me the most favorable reading possible here is that Buffett’s hunger for money led him to create a portfolio so unwieldy he simply couldn’t keep track of all the racism happening within it.

On the other hand, there’s always the possibility he knew about these allegations for years and did nothing about them. Either way, the settlement is an awful look for Buffett and company. And, I hope, a blow to the compassionate billionaire brand.

 

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