Rep. Frank warned Waters not to aid OneUnited Bank

Rep. Waters is now faced with three ethic charges..

WASHINGTON — US Representative Barney Frank of Massachusetts urged Representative Maxine Waters of California to avoid any dealings with Boston-based OneUnited Bank because her husband owned stock in it. But the congresswoman didn’t heed his warnings, according to a House ethics report released yesterday, and now faces a possible trial before her colleagues over a conflict of interest with the bank.


The 79-page report by the Office of Congressional Ethics said Waters confided to Frank that bank officials came to her for help in 2008. But she felt conflicted because her husband, Sidney Williams, had served on the board of OneUnited from 2004-2008 and was a stockholder. It is against House rules to use one’s power as a member for personal financial gain.

“She knew she should say no, but it bothered her,’’ the report said. Issuance of the document turns the matter over to the House Ethics Committee and sets the stage for a tria
Read on.

And there is more. Interesting nugget:

But when he was asked if he looked into OneUnited, which a few weeks later was slapped with a cease-and-desist order by regulators alleging improper lending practices and excessive executive pay and perks, including a Porsche for executives, Frank said he did not.


“No, I did not look into this specific bank because it was not my final decision on who got aid,” said Frank. “I think minority banks are healthy for the country’s economy. They’re the only minority-owned bank in Massachusetts.”


Waters approached Frank on behalf of OneUnited in early September 2008 and Frank, who is identified only as “Representative A” in the ethics report released yesterday, told her: “He would address the problem. Representative A then asked his staff to take over the OneUnited issue from Representative Waters.”