Citigroup escapes LA’s bias lawsuit

Los Angeles has dropped a lawsuit accusing Citigroup of discriminatory mortgage lending, marking the second time a major bank has escaped claims that it steered the city’s minorities into highcost loans and precipitated foreclosures and neighborhood blight.

In a court filing on Wednesday, no reasons were given for the dismissal. LA dropped a similar lawsuit against JPMorgan Chase last month but still has cases pending against Bank of America and Wells Fargo.

The lawsuit said that Citigroup en gaged in “red lining,” or restricting credit in minority neighborhoods, and “reverse red lining,” or targeting minorities for highcost loans, which ended in default.

Citigroup stock rose 34 cents on Thursday, to $51.66.