Cleveland loses bid for damages in mortgage crisis

CLEVELAND - The U.S. Supreme Court has said "no" to Cleveland's bid to hold banks and mortgage lenders responsible for extra expenses resulting from the mortgage crisis.

The city had sued 21 Wall Street firms involved in subprime lending and the foreclosure crisis in an attempt to hold the firms accountable for their practices. It was hoping to recoup some of the money spent to board up, maintain and demolish foreclosed homes that have been abandoned.

Law Director Robert Triozzi said he believes the banks that now own derelict properties should foot the bills, and he's disappointed by the high court ruling.

"While this portion of our litigation comes to an end, our lawsuit in State court continues, that multi-million dollar litigation is focused on holding many of these same firms liable for abuse of process which has exacerbated the foreclosure crisis," said Triozzi.

The city plans to continue enforcing the housing codes and going after owners of vacant properties.