- published: 21 Feb 2015
- views: 7617
In the United States, redlining is the practice of denying services, either directly or through selectively raising prices, to residents of certain areas based on the racial or ethnic makeups of those areas. While some of the most famous examples of redlining regard denying financial services such as banking or insurance, other services such as health care or even supermarkets, can be denied to residents to carry out redlining. The term "redlining" was coined in the late 1960s by John McKnight, a sociologist and community activist. It refers to the practice of marking a red line on a map to delineate the area where banks would not invest; later the term was applied to discrimination against a particular group of people (usually by race or sex) irrespective of geography.
During the heyday of redlining, the areas most frequently discriminated against were black inner city neighborhoods. For example, in Atlanta in the 1980s, a Pulitzer Prize-winning series of articles by investigative-reporter Bill Dedman showed that banks would often lend to lower-income whites but not to middle- or upper-income blacks. The use of blacklists is a related mechanism also used by redliners to keep track of groups, areas, and people that the discriminating party feels should be denied business or aid or other transactions. In the academic literature, redlining falls under the broader category of credit rationing.
Redlining is a discriminatory practice by which banks, insurance companies, etc., refuse or limit loans, mortgages, insurance, etc., within specific geographic areas, especially inner-city neighborhoods.
Racism in the United States has been a major issue since the colonial era and the slave era. Legally sanctioned racism imposed a heavy burden on Native Americans, African Americans, Asian Americans, and Latin Americans. European Americans (particularly Anglo Americans) were privileged by law in matters of literacy, immigration, voting rights, citizenship, land acquisition, and criminal procedure over periods of time extending from the 17th century to the 1960s. Many non-Protestant European immigrant groups, particularly American Jews, Irish Americans, Italian Americans, as well as other immigrants from elsewhere, suffered xenophobic exclusion and other forms of discrimination in American society. Major racially structured institutions included slavery, Indian Wars, Native American reserva...
Members of Neighborhoods Organizing for Change (NOC), ISAIAH, and Minnesotans for a Fair Economy stood together outside Minneapolis City Hall to accuse banks of continuing to "red-line" communities of color and refusing to refinance sub-prime mortgages from 2009-2012. Accompanying the activists and researchers were three Minneapolis City Council members — Blong Yang, Elizabeth Glidden and Cam Gordon, all of whom called for something to be done. "What the report shows very clearly is that big banks like Wells Fargo are redlining communities of color," said Anthony Newby, executive director of NOC. "The report shows that redlining is alive and well, and in some ways it's worse than it's ever been." Myron Orfield from the University of Minnesota Law School's Institute on Metropolitan Opport...
AG claims Eastside loan applicants are "automatically disqualified" due to race
Former financial regulator Bill Black discusses the significance of a new lawsuit against Evans Bancorp that alleges the bank would not give loans to black neighborhoods
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