Barney Frank Contacted Hank Paulson About OneUnited Bank

Barney Frank Contacted Hank Paulson About OneUnited Bank

All one ever has to do is follow the money with politicians to find the cover-up.  Judicial Watch has the newest ethics ‘problem’ story.

Explosive Treasury Emails Put Barney Frank in the Ethics Hot Seat

When Barney Frank was asked about intervening on behalf of a home state bank for Troubled Assets Relief Program (TARP) funds, the Massachusetts Democrat admitted he spoke to a “federal regulator” but according to the Wall Street Journal, “he didn’t remember which federal regulator he spoke with.”

According to explosive new Treasury Department emails uncovered by Judicial Watch, it appears this nameless bureaucrat is none other than then-Treasury Secretary Henry “Hank” Paulson!

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. ??????”

The fact that Frank and Waters improperly intervened to score some TARP cash for OneUnited does not shock me. This is exactly the kind of corrupt deal-making I expected when the federal government decided to throw massive amounts of taxpayer dollars at private institutions. But I have to say, it is a rare case indeed when the documented evidence of impropriety is so clear.

These documents indicate that Barney Frank has been flagrantly dishonest about his role in lobbying for OneUnited. I mean, who is Frank kidding trying to suggest he didn’t remember calling Hank Paulson? It’s early but this looks to me like it could mushroom into another Keating Five-type scandal. And it certainly calls into question whether Rep. Frank should remain head of the powerful House Financial Services Committee.

No wonder the Obama Treasury Department stonewalled the release of these documents.

As I’ve mentioned previously, without the intervention of Frank and Waters, OneUnited would seem an unlikely recipient of TARP funds. As reported in the January 22, 2009, edition of the Wall Street Journal, the Treasury Department indicated it would only provide funds to healthy banks in order to jump-start lending. Not only was OneUnited Bank in massive financial turmoil, but it was also “under attack from its regulators for allegations of poor lending practices and executive pay abuses, including owning a Porsche for its executives’ use.” The bank continues to flounder and is one of the few financial institutions to have not paid dividends to the federal government in exchange for the TARP cash infusion.

The good news is that the media is beginning to cover this scandal. The Fox Business Channel highlighted our work just last night. To view the segment, go to our YouTube channel here.

Go over and check out the rest of this article from Tom Fitton about Goodwin Liu. Here is just a small sampling.

Let me be clear, Goodwin Liu has the most radical views of any federal judicial nominee in recent memory. As former chairman of the far-left American Constitution Society he is in no small measure a leader of the opposition for those of us who don’t want judicial activists on the bench. I can understand, considering his own background, why Obama would want to appoint an inexperienced liberal to the courts, but the Senate needs to do its job and probe Liu’s views and qualifications. Many think he’s being groomed for a Supreme Court appointment.

By the way, our effort to educate the Judiciary Committee on the Liu nomination recently earned the attention of Fox News Channel. Check it out on Judicial Watch’s YouTube channel here.

(H/T KG)

Today’s AYFKM? Award: Maxine Waters And ACORN

10.26.09: I am bumping up this post as I wrote so many yesterday that many have missed this very IMPORTANT INFORMATION!

Mahalo, DT

********

(H/T Mike)

Any doubt who the traitors to the Republic actually are?

From Spencer Bachus (R-AL)

Democrats Vote To Give ACORN Regulatory Authority Over Financial Institutions

WASHINGTON – During consideration of H.R. 3126, legislation to establish a Consumer Financial Protection Agency (CFPA), Democrats on the House Financial Services Committee voted to pass an amendment offered by Rep. Maxine Waters (D-CA) that will make ACORN eligible to play a role in setting regulations for financial institutions. (emphasis mine)

The Waters amendment adds to the CFPA Oversight Board 5 representatives from the fields of “consumer protection, fair lending and civil rights, representatives of depository institutions that primarily serve underserved communities, or representatives of communities that have been significantly impacted by higher-priced mortgages” to join Federal banking regulators in advising the Director on the consistency of proposed regulations, and strategies and policies that the Director should undertake to enforce its rules.

By making representatives of ACORN and other consumer activist organizations eligible to serve on the Oversight Board, the amendment creates a potentially enormous government sanctioned conflict of interest.  ACORN-type organizations will have an advisory role on regulating the very financial institutions from which they receive millions of dollars annually in direct corporate contributions and benefit from other financial partnerships and arrangements.  These are the same organizations that pressured banks to make subprime mortgage loans and thus bear a major responsibility for the collapse of the housing market.

In light of recent evidence linking ACORN to possible criminal activity, Democrats took an unprecedented step today to give ACORN a potential role alongside bank regulators in overseeing financial institutions.  This is contrary to recent actions taken by the Senate and House to block federal funds to ACORN.

A recent inquiry into bank funding of ACORN activities by three House Committees found that institutions that would be regulated by the CFPA have provided millions of dollars to the organization in the form of direct donations, lines of credit, cash, and other assets over the last 15 years.

The Waters amendment passed on a vote of 35-33. Click here to view the vote.

H.R. 3126 Sponsored by, guess who, Barney Frank.

As soon as I finish reading this POS, I will put it up.  If you want to peruse it, click on the link above.

Today’s AYFKM? Award Goes To Barack Obama: “Don’t Do Alot Of Talking And Get Out Of The Way”

Are you just sick to death of this clueless pretender that had 143 days in the Senate before he left his desk and started running all over God’s green earth to get the job that he is currently failing miserably at?  Are ya?  How do we stop any and all future legislation from this bozo and his fascist friends until we can flip the whole congress in 2010, and then send him packing in 2012?

Oh yeah, we have a so-called president telling the American people to shut up not realizing that he should really be telling his own party to shut up.  Unfortunately for us, we are the ones who are going to have to clean up this marketed and teleprompted resident’s messes.  Those of us that have not completely lost our jobs are having to put aside our lives and our families to stop the madness of the very people that started the economic meltdown to begin in.

“But I don’t want the folks who created the mess to do a lot of talking. I want them to get out of the way so we can clean up the mess. I don’t mind cleaning up after them, but don’t do a lot of talking.  Am I wrong Virginia?”

Why yes, Barack, you would be wrong!

Nothing says THE TRUTH like tape…

Maxine Waters and Gregory Meeks, Later 2004

The Dems and the Community Reinvestment Act:

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