Written by Biloxi
As you know, Congresswoman Maxine Waters will face House ethic charges on her husband's ties with a bank that received TARP money. This is nothing new to me as this charges was brought up in 2009 in which Rep. Waters defended herself.
From TPM Muckraker:
In 2008, Waters asked then-Treasury Secretary Henry Paulson to arrange a meeting between agency officials and the National Bankers Association, which represents minority-owned banks, the New York Times reported in March.
At the September meeting, two officials with OneUnited bank -- Kevin Cohee, the CEO, and Robert Cooper, who was also NBA's incoming chair -- focused on the losses of Boston-based OneUnited, requesting $50 million in bailout money. In December, at a second meeting with Treasury requested by Waters, an official from OneUnited was present but the discussion centered on the general subject of minority-owned banks. Two weeks later, OneUnited got $12 million in TARP money.
Waters' husband had been a director of OneUnited until early 2008 and owned at least $250,000 in stock in the struggling bank. Treasury officials told the Times they were not aware of those ties at the time of the meetings because Waters did not disclose her connection to the bank.
In addition, according to TPM:
Ms. Waters released two letters to TPM sent by the National Bankers Association (NBA), a trade group for minority-owned banks, to the Treasury Department, in reference to a September 2008 meeting Waters had helped set up between NBA and Treasury. The letters appear to back Waters' contention that the meeting, at which OneUnited's CEO reportedly asked explicitly for bailout money, was not set up exclusively to help OneUnited, but rather on behalf of minority-ownded banks more broadly.
Moreover, Ms. Waters released a 2007 document showing that she disclosed her ties to OneUnited -- her husband, Sidney Williams had previously served on the board, and owned stock. Waters released this document before questioning witnesses at a House hearing on minority-owned banks. Here is her disclosure document. Click here.
In March 13, 2009, Waters released a statement on her website regarding her advocacy on behalf of minority and community banks. Ms. Waters wrote:
“My husband Ambassador Sidney Williams, who has represented the United States as an Ambassador and has been a respected and active member of the Los Angeles community for many years, was asked to sit on the board of OneUnited Bank. This bank services our community and was the successor to the bank of which we had been customers at for many years. He accepted the position and did not accept any director’s compensation for his work on behalf of the bank and the community it serves.
“Despite suggestions to the contrary, I have fully disclosed all of my financial interests in official filings. These filings included the stock my husband purchased upon joining OneUnited’s board (it is required under Massachusetts law, where OneUnited is headquartered, that individuals hold stock in a bank before joining its board). Furthermore, Ambassador Williams is proud to be invested in a minority owned community bank that was given an “outstanding” lending rating from its regulator for its lending activity in underserved communities in Los Angeles, where traditional banks have refused to lend. I even took additional steps beyond what is required of Members of Congress when I voluntarily and publicly disclosed my husband’s relationship with OneUnited during an October 30, 2007 Financial Services Committee hearing entitled “Preserving and Expanding Minority Banks.”(3) Both the Federal Deposit Insurance Corporation and the Office of Thrift Supervision were present at this hearing.
I notice the focus is on Rep. Maxine Waters. But, I found this interesting nugget. Did you know that Congressman Barney Frank intervene and called former Treasury Hank Paulson in regards to TARP money for the Boston-based OneUnited Bank? From Judicial Watch:
These documents, which we obtained in response to a Freedom of Information Act (FOIA) lawsuit, indicate that Frank personally called former Secretary Paulson regarding a TARP cash infusion for the Boston-based OneUnited Bank. And it worked. On November 25, 2008, following Frank’s intervention, the Treasury Department awarded $12,063,000 in bailout funds to OneUnited, which is located in Frank’s district.
Moreover, according to these documents, Frank is not the only Democratic Congressman with dirty hands in the OneUnited bank scandal. Rep. Maxine Waters (D-CA), whose husband, Sidney Williams, served on the OneUnited Board of Directors, also intervened on behalf of the Massachusetts Bank. (Williams resigned shortly after Waters approached federal regulators regarding the OneUnited TARP grant.)
Among the key documents is an October 17, 2008, email from former Deputy Assistant Secretary for Banking and Finance King Mueller to former Assistant Treasury Secretary Neel Kashkari and other Treasury officials referencing the contact between Frank and Paulson:
Just spoke w/ Jim [Segel] in BF's [Barney Frank’s] office. This is about One United Bank (a minority owned bank in BF's district). Maxine Waters is interested in the bank as well, Treas[ury] and others met w/ them (minority bankers assoc) last month per the Water's request. They were a big holder in f/f preferred. BF is interested and may call HMP [Henry Paulson] again about this. FDIC is their primary federal regulator. [Emphasis added.]
And there is also this October 16, 2008, email from Kashkari to former Deputy Assistant Secretary for Appropriations and Management Peter Dugas: “Peter, Jim Siegel [sic] from Frank’s office called a few times-can one of you follow-up with him?” (Segel serves as Frank’s Chief Counsel.) Paulson’s October 2008 calendar, which has been released separately, details calls from Frank on October 2, 3, 7, 9, 13, and 17.
With respect to Rep. Waters, the documents include a January 13, 2009, email from Brookly McLaughlin, Treasury’s Deputy Assistant Secretary for Public Affairs, expressing surprise at Waters’ apparent conflict of interest: “Further to email below, WSJ [Wall Street Journal] tells me: …Apparently this bank is the only one that has gotten money through section 103-6 of the EESA law. And Maxine Waters’ husband is on the board of the bank. ??????”
Interesting, the House charges one ethic charge to Rep. Maxine Waters for her husband's ties with OneUnited Bank as board member for the bank in Los Angeles, CA but we don't hear any news or any questioning of Rep. Barney Frank and his conversations with the former Treasury Secretary for TARP money for One United Bank. Notice that the 12 billion awarded to One United Bank which happens to be in Frank's district. So, who really benefited from One United Bank receiving TARP money? Waters? Frank? Or both? Did Waters' husband receives benefits from having a wife on the House committee that was involved with bailout of the banks? I certainly would like to know more of the evidence of the House ethic committee that prompt to charge Rep. Maxine Waters.
Rep. Maxine Waters has said that she will fight the charges. By the way, OneUnited Bank who was a recipient of TARP money paid back the government.
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