Political Favor For Bank Bail Recipient?

March 13, 2009

US (ChattahBox) – Think all of the banks that were given bailout funds were carefully considered and debated? As it turns out, one or two might have gotten onto the funding list because of who they know, not what they needed.

OneUnited Bank is one of the many banks that was heavily criticized for it’s almost criminal lending procedures, bad leadership, and horrible organization. As a relatively small name along the food chain, it was a surprise when they managed to receive $12 million dollars to help pull them out of the nosedive they found themselves in.

However, it looks as though it was friends within the House Financial Services Committee that got them put on the ‘A’ list.

Rep. Barney Frank (D-MA), who heads the committee, apparently put in a tailored clause that would allow the bank to be among those receiving assistance, even though they did not qualify as ‘too big to fall’. But one voice wasn’t enough, so in comes Rep. Maxine Waters (D-CA), whose husband used to be a director for the bank. Not only did she have a personal history with institution, but her husband may hold up to half a million dollars OneUnited Bank stock.

But Frank says that the true reason that the two worked so hard to save this little bank is because it is an African-American owned company that was sunk by the Freddie Mac and Frannie Mae decisions that led to the housing crisis.

“I did feel that it was important to frankly try and save them since it was federal action that put them into the dumper,” he said.

But if there reasons were so noble, why sneak the aid in the back door?


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