Monday, October 20, 2014

This Bears Close Watching

Disparate impact is an illegitimate, politically created concept that has wreaked havoc on organizations throughout our society since its formulation back in the early 1990s.  It's a tool that the Obama administration has used to great effect, which isn't surprising given that it's used primarily as a way of promoting the interests of minorities and women.  Well, as this Investors Business Daily article explains, the days of disparate impact my be numbered:
Barring more bribery and intimidation, lenders may finally get their day in court. If Texas Department of Housing v. Inclusive Communities Project stays on the docket, it could deal a huge blow to the radical racialist agenda of this administration.
If justices throw the theory out, no longer will the Justice Department, Consumer Financial Protection Bureau, EEOC or HUD be able to target banks, mortgage companies or employers for supposed violations despite the complete absence of discriminatory conduct.
They'll no longer be able to frame businesses as racist — a threat that has already led thousands to in effect adopt racial quotas in lending and hiring to avoid federal persecution.
"The risk of disparate-impact lawsuits, in the absence of guidance from the court, pressures the residential mortgage lending industry to arrive at particular outcomes and end numbers to avoid such lawsuits," the American Bankers Association wrote the high bench in a joint amicus brief.
[ht: Glenn Reynolds]