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Notes -
What happens if the predatory bank is enabled by someone else? If your high-risk clients are minorities and the government says that if you don't lend to them, you get shut down for discrimination, and then a lot of those high-risk clients default on their loans, is it really fair to make the banks pay?
Have bank lied to them and promised that defaulting is impossible, taking loans has no risks or deliberately mislead them into this? Are they blatantly lying about lack of risk? Are they telling them to disregard mandatory disclosure of risk? Are they promising that they will repay less or the same despite that real interest is >0? If no then it does not really apply.
Though bank would have a problem if doing this would be needed to reach some diversity ratio or something.
And obviously, "the government says that if you don't lend to them, you get shut down for discrimination" is stupid and should be fixed. And yes, I know that it is easy to say.
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