Thursday, September 16, 2010

How Barney and Maxine wasted $12 million of our money

Judicial Watch has received documents that demonstrate how both Barney Frank and Maxine Waters intervened to get $12 million in TARP money for the bank OneUnited where Maxine had a family interest since her husband owned a lot of stock in the bank.
What's wrong with that? Well, for one thing, the TARP funds in question were only supposed to go to healthy banks in an effort to get them to restart their lending programs that had been hobbled by the Great Recession of 2008.

And for another, the documents reinforce the maxim that when government tries to control the economy - picking winners and losers is another name for it - the winners tend to mostly be those players with the most political influence, not the players providing the best, most needed services for consumers.

The documents, including a number of incriminating emails, were obtained by Judicial Watch through a Freedom of Information Act (FOIA) request. According to Judicial Watch, "the Obama administration has thus far produced 639 pages in response to Judicial Watch’s FOIA investigation of the Waters/Frank bailout scandal, but is withholding in full 203 pages."

What has been provided, however, appears to seriously undercut the explanation by Frank and Waters for their actions.

“These emails suggest that without the corrupt intervention of Barney Frank and Maxine Waters OneUnited would not have gotten a $12 million taxpayer bailout,” stated Judicial Watch President Tom Fitton. “And these documents show that this so-called community bank wasn’t actually lending much to the ‘community’ that Frank and Waters were purporting to help.”
The bank had received a Community Reinvestment Act rating of "Low Satisfactory" with lower ratings for individual banks on its efforts to lend money to local members of the community. The bank shouldn't have been eligible to receive TARP funds, but Barney and Maxine intervened to make sure it did.

Just one more example of Maxine Waters' corruption and the assistance Barney Frank gave her to waste more of our money. And that's not even including all that Frank did to block any reform of Fannie Mae and Freddie Mac when it might have helped to avert or mitigate the financial meltdown. These Democrats have a lot to answer for.

1 comment:

Rick Caird said...

The most telling line is:

"the documents reinforce the maxim that when government tries to control the economy - picking winners and losers is another name for it - the winners tend to mostly be those players with the most political influence...".

For political influence, read money to the legislators. In a more just society, both Waters and Frank would be in prison. But, until then, the best we can do is limit their power.

There is a second maxim:

"The more power a legislator has, the more corrupt he will become". Such legislators might even direct scholarships to their family and allow lovers to run prostitution rings out their homes.