News Analysis 5

Housing Discrimination

A lawsuit was filed in New York federal court citing accusations of M&T Bank for offering loans to lower qualified white customers at higher approved loan amounts than minority customers by using hidden approval criteria based on raced within the application process.

The ethical problem that is raised in the case is based on possible violations of The Fair Housing Act of 1968 which was designed to eliminate the practice of racial discrimination and segregation of historical neighborhoods by banks in offering loans to minority home buyers. The practice perpetuating segregation of minority people is simply not a fair or equitable way for a society to behave. Bank ought to provide services to customers that are qualified regardless of race and any other factor that infringes on a person’s God given rights that are protected by the constitution.

An Ethical approach that could be applied to the reasoning behind why these banking practices are unethical is offered by Joe Fletcher in that every situation must be evaluated as to how an individual can be liberated from societal rules of the past therefore a progressive standpoint based on love. Minorities adversely affected by banks that will not provide equitable loans is certainly not a loving societal characteristic and therefore is unloving. This is an ethical approach based on a humanistic theory and not necessarily a biblical perspective but is certainly one based common dignity of humans.

So far the case is still in the court system and they are going through audio recordings as evidence in the case. The fact that the investigation into the M&T Bank and other potential violators is being handled by the foremost testing expert makes the results likely to be well reviewed and highly detailed even though the method for testing the banks is a very rare type of investigative research. The decision for the Fair Housing Justice Center to pursue the compliance of lenders to follow the rules of the law is certainly the correct way to proceed with making sure the industry remain fair for borrowers of all races and ethnicity. Based on the course text Ethical Theory and Business, Kantian ethical viewpoint of Utilitarianism would suggest that the maximization of the good and the demand for reducing or eliminating harm to people is the most fair and equitable way to proceed in life is a fine example of how to evaluate how the Fair Housing Justice Center went after this and other banks behaving improperly.

Since the bank is still under investigation they ought to be cooperating with the investigators in the lawsuit and to some degree they are however, the banks spokesperson has spoken out in a brief comment on the issue by stating that they hold the highest level of non white borrower loans for their customers than any other institution in the New York area. It would make reasonable sense for the bank to show good due diligence as well as cooperation in sensitivity to the allegations if they were to behave in a different manner. the follow the course text Ethical Theory and Business, the Kantian viewpoint of Utilitarianism would show that it was also their best interest to work together to try to reach the most good by supporting the efforts of the investigation instead of trying to offer limited information on its position or broad public statements of good will.

References

Business Ethics Magazine (9 February 2015). Retrieved from http://business-ethics.com/2015/02/09/1645-housing-enforcement-group-sues-mt-bank-for-discrimination/

Beauchamp, T.L., Bowie N.E., Arnold D.G., (2012). Ethical Theory and Business, 9th Edition. Upper Saddle River, NJ: Pearson Prentice Hall