Week 7 Post 2

 Week 7 Post 2- Formal Synthesis

    In research IRS support and compliant regulations, it can be found that the federal reserve's involvement in residential segregation continued to prevent African Americans from having stable housing. The government had a constitutional obligation to prevent segregation to uphold the thirteenth, fourteenth, and fifteenth amendment. It was stated that although institutions like churches and universities are technically not part of the federal government, they do receive tax exemptions from the federal reserve, and should not be given these exemptions if they are practicing segregation. However, the federal reserve was not practicing this behavior. The agency was still granting tax breaks to white-only schools sixteen years after Brown v. Board of Education of Topeka was passed. In previous chapters we learned extensively about neighborhood associations and their creations of racial covenants. Many of these neighborhood associations were headquartered in churches. In Detroit and Chicago there were several neighborhoods were churches lead the attempt to evict every black family. Universities also participated in this practice, including The University of Chicago, which spent over 100,000 dollars in a thirteen year period in an attempt to 'preserve their neighborhood' through racial covenants. The chapter than began to explain reverse redlining, a process of overselling exploitative and subprime loans to African Americans to trap them in difficult housing situations and preventing them from moving into white neighborhoods. Reverse redlining was used in a new neighborhood in New York City that was created by bulldozing a neighborhood that was fourty percent black and Puerto Rican. The practice of reverse redlining sold African Americans loans with high interest rates that made it difficult for them to ever fully pay it off or stay caught up on rent payments. The federal reserve banned the practice of reverse redlining in 2010, but the previous victims of this process were never compensated for the scam.

    This practice led to several neighborhoods and banks being sued for this loan practice. The Memphis Wells Fargo was discovered to have called subprime loans 'ghetto loans' during the 1980s and 90s when they were selling to African Americans. Other organizations were exposed for claiming African Americans 'weren't savvy enough' to understand that the loans being sold to them were sub-par. This internal revenue service was aware of the actions being taken in all of these cities, because banks are an instrument of the federal government. In some states, like New York, state legislators were permitting these loans practices. It is clear that De Jure segregation was present with the IRS, allowing these private companies to be tax exempt despite their active segregation was government-supported racism.