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E-Mails Show Treasury Knew Bank Championed by 2 Lawmakers Was Weak

Prior to giving a $12 million piece of the bailout to OneUnited bank, the Treasury Department knew the bank was weak and had a spotty record of lending to low-income homeowners, according to internal Treasury e-mails obtained by Judicial Watch, a conservative watchdog group.

This is hardly the first time the feds learned of problems at OneUnited, the minority-owned bank that was championed by Reps. Maxine Waters and Barney Frank. Waters, whose husband had a financial stake in the bank, currently faces ethics charges for the assistance she provided to it.

Just two months before the bank’s bailout, regulators at the FDIC had accused OneUnited of unsound banking practices and excessive executive perks, which included a Porsche SUV that was registered to the bank but listed at the address of the bank’s CEO.

The e-mails show that around the time of the bailout, the Treasury and the FDIC had been communicating about OneUnited, and the Treasury knew that in both Massachusetts and Florida, the bank’s lending record was, based on Community Reinvestment Act ratings, troubled at best. Here’s The Hill, explaining:

One e-mail produced from the FOIA request sent from former Treasury Senior Adviser Michael Scott to Director of the Office of Financial Institutions Mario Ugoletti is dated Sept. 15, 2008, months before banks were selected to receive bailout funds. The e-mail cites a 2004 evaluation criticizing the bank’s service to the state of Massachusetts. The report noted that in 2002 and 2003, the bank administered just one loan.  

… "In Florida, the institution received a CRA rating of ‘Substantial Noncompliance,’ which also represented the subordinate rating for the Lending Test…”

The e-mails also include some internal Treasury correspondence in the lead-up to the September 2008 meeting between Treasury officials and OneUnited executives who were representing the National Bankers Association, a trade association for minority-owned banks.

As we’ve noted, Rep. Waters, D-Calif., is accused of having violated House ethics rules when she helped arrange this meeting, at which much of the discussion focused on the plight of OneUnited. (The meeting, as the e-mails show, was also attended by Waters’ chief of staff, Mikael Moore, who is also her grandson.)

Waters’ husband, Sidney Williams, had at least a half million dollars’ worth of investments in the bank in 2007, and was a board member at the time of the meeting.

Waters has maintained that the case against her has no merit, and her involvement was driven by a desire to help minority banks, not to protect her husband’s financial stake. Waters currently awaits public hearing that will likely not occur until after midterm elections.

Water is a crook what more can be said?  She will get the idiots in her district will vote her back in again. Only hope is Congress finds a way to throw her out.

Waters is a crook and she’ll be re-elected just as Rangel was.  Congress has GOT to clean up its act.  Frankly, I think that the whole bunch of them should have ‘background checks.’  And if there is a question of legal violations they should be ‘tried’ by the citizens from a different district rather than ‘tried’ by fellow congressmen or senators.

She may be a crook, she may not be, but she deserves her day in court. Sift through all the congress people involved with protecting banks, lobbying positions, partners in various crooked behaviors, Wall Street firms, and Maxine’s crimes will seem minor in comparison.

Time to ease up, folks. Hard times are here, and she’s not a big fish.

Beverly Christensen

Sept. 16, 2010, 6:54 p.m.

Mrs. Waters-Williams has served the community long enough.  We hope that she will resign with the dignity that she shown during her many years of service to south Los Angeles.

Fred Mauney...The Phoenix

Sept. 16, 2010, 8:24 p.m.

I can tell you this. I’ve been up to the Hill as they call it quite a bit in the past year or so and when I have finished my business I’ll stop in on whatever committee hearing is going on. A lot of times its been the house judiciary. And I can tell you this, Maxine Waters is one of the few who really ask the tough questions showing to me she and her staff are at least doing their homework. The first thing we should be all be doing is concentrating on the really bad ones. especially over in the senate,

I have not seen any congressional representative literally trying to help their constituant like Maxine Waters. She is the only one who actually got on the phone with Bank of America re. Loan Modification. (you can all see this on youtube)

If all politicians would be fired for violating ethic rules we would not have too many people in government today.

And what kind of cars the other bailed out bankster drive? Or Private jet? Cman people. I don’t see Jamie Dimon or Blankfein or Tim Geithner being harassed what they drive.

She is one politician who what I see, ( and believe me I have seen hundreds of hours of oversight committee hearings ) is trying to help the people.

If the Bush Treasury Dept. knew this bank was a problem and it was tied to a Democratic Representative, who they wished damage, then why did they give it TARP monies? Waters may have violated Congressional ethics [but have any of the Republican Reps demonstrated their ethics by refusing money from any of the modern day robber barons?], but she deserves her day in court. On he other hand, the treasury officials who gave the TARP money to a bank that they knew the FDIC should take over and liquidate should investigated for incompetence or even malfeasance and be fired. These Republican thugs giving my tax money to the robber barons of Wall Street, without any strings or accountability, that really makes me angry. It is time that we work to vote the Party of NO out of all public offices! I was a Republican Party officer, but since Engler [I live in Michigan] and Bush I will never vote for any Republican again.

I like Maxine Waters and I like Barney Frank. Ms. Water’s should not have to bare all the blame.

Even though Ms. Water’s has done lot’s of good and yes there are many others that should be brought up on ethics charges, Ms. Water’s actions should not be allowed to slip. She will be re-elected. Her re-election in no way should let her off the hook.

Ethic’s violations should carry with them a bar from holding public office.

We all cry that Washington is a cesspool. Well one way to clean the cesspool is to rid it of its contaminants.

A Gov’t that does not abide by its rules or chooses not to enforce the laws is a Gov’t out of control and we can only count on more corruption and yes a Gov’t whose laws only apply to its constituency and not to them. This should be unacceptable to all.

No one has seen the evidence and yet everyone has condemned Maxine Waters - so typical of the mob mentality of most Americans today - only those on the lowest end of the intelligence scale would come to a conclusion before knowing the facts -  believing their own thoughts to be the absolute truth. Bush & Cheney killed our young based on a lie - for political gain - and they were allowed to retire gracefully and here the mob gets whipped up about a meeting and screams for vengence - America, my country that I love, I fear for your future.

It would seem that some take offense to comments made derogatory of the alleged crimes committed by Maxine Waters just because she has been a good representative of her district and a hard worker.  Because of these positive traits her supporters are more than willing to give her a pass.  I have to ask why?  I hope that during my life I have done some good maybe even some very good things.  I’m not in a position that I can do positive things on a massive scale but I try.  I assure you that whatever good I may have done, if I have violated the law I would be held fully accountable.  The citizens of this country should expect equal treatment of their elected officials under the law just as they, the citizens, are held accountable.

Dave ; So never in your life done nothing wrong.and did not get cought?
Maybe you are an Angel?

Yes people can replace Maxine Waters but I am not sure whoever replace her will be perfect. Because Dave nobody is perfect not even you.

Ms. Waters takes care of her constituents.  By all accounts, she does her job well.  She’s controversial because she has an abrasive way about her.  She’s not a saint, but she’s also not the worse in Congress.  I doubt she’ll get anything worse than a censure from Congress.  She’s a significant figure in the civil rights movement.  Maybe she has been in politics too long.  Maybe she’s lost her moral compass.  Maybe she should retire.  But to a majority of her constituents, she’ll always be a hero.  I agree with President Obama when she told Rangel to retire with dignity.  I think Waters should do the same.  She’ll still be a hero.  But, it’s time…

“It could probably be shown by facts and figures that there is no distinctly native American criminal class except Congress.” - Mark Twain

Come on folks,is there really an honest politician in existence in your system.When special interests are involved in raising money for these reps you have to believe there has to be an awkward reciprocation.just pick anyone of these reps and follow the money and eureka

Revcently Barney Frank’s ex-“spouse” (the former Fannie Mae executive Herb Moses) quietly took a position working for the FDIC in California. Coincidence? Google: “frank, fdic, fannie”

Barney Frank was complicit in the Water’s debacle.

The entire wad in Washington are unethical and corrupt. The peoples of this country must rise and remove them all.

Time for a good old American revolution and for States to secede. Washington is out of control and broken beyond believe.

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