.
ACLU sues Morgan Stanley over risky mortgages
The ACLU sued Morgan Stanley Monday, charging it engaged in racial discrimination by funding subprime mortgages.
October 15th, 2012
12:23 PM ET

ACLU sues Morgan Stanley over risky mortgages

By Chris Isidore @CNNMoney

NEW YORK (CNNMoney) - The American Civil Liberties Union sued Morgan Stanley on Monday, charging the Wall Street firm discriminated against African-American homeowners and violated federal civil rights laws by providing funding for risky mortgages.

The suit, filed in U.S. District Court in New York, is the first that connects racial discrimination to the process of bundling subprime loans into mortgage-backed bonds that were then sold to institutional investors and pension funds. The lawsuit was filed behalf of five Detroit residents, and asks the court to certify the case as a class action. It argues as many as 6,000 black homeowners in the Detroit area may have suffered similar discrimination.

FULL STORY
Young adults drop out of the job market
Much of the drop in the August unemployment rate is due to a shrinking labor force, driven by so many young adults who no longer having jobs or have stopped looking for work.
September 7th, 2012
01:54 PM ET

Young adults drop out of the job market

By Chris Isidore @CNNMoney

NEW YORK (CNNMoney) - The drop in the unemployment rate in August isn't particularly good news for the economy - it's driven mostly by nearly 400,000 people dropping out of the labor force, rather than more people finding jobs.

But those dropping out aren't so much the discouraged 30-, 40- or 50-year olds. In fact, the Labor Department said there was a modest decline in the overall number of discouraged job seekers.

The drop is because so many young adults, aged 16 to 24, are no longer looking for work.

There were 453,000 fewer young adults with jobs in August than in July. But despite that plunge, only 27,000 more young people were looking for new jobs. Most apparently stopped looking and left the labor force. And those numbers take into account seasonal factors such as younger workers returning to school.

As a result, the percentage of young people who are counted in the labor force fell to its lowest level since 1955.

The unemployment rate for young adults rose to 16.8% from 16.4% in July.

"I don't think they're more lazy. It's that there are less opportunities for them," said Heidi Shierholz, labor economist, at the Economic Policy Institute, a liberal think tank. "They have it rough."

Read the full story

Posted by
Filed under: Age • Economy • How we live