Posted on 07/01/2009 6:04:27 PM PDT by Clintonfatigued
A struggling Hawaii bank received a $135 million federal bailout last fall two weeks after staff from the office of Sen. Daniel K. Inouye, a big investor in the bank, called federal regulators about the aid application, according to a report in ProPublica Tuesday.
Bank regulators had designated Central Pacific Financial as a marginal candidate to receive federal assistance, according to documents cited in the report. But soon after the phone call from Inouye's office, the Treasury directed millions of dollars to bolster the bank's capital reserves.
Inouye, D-Hawaii, owns shares in the bank that totaled between $350,000 and $700,000 at the end of 2007, according to the report. That amounts to roughly two-thirds of the senator's personal wealth.
(Excerpt) Read more at cbsnews.com ...
This bank holds two-thirds of Inouye’s personal assets, and it got a bailout after his office made a call to the proper Federal agency. How could this possibly be all right?
No, he has an Ownership position in this bank to the extent of 2/3rds of his personal assets. Big diffrence.
Using our tax dollars to his personal benefit.
The Fix is in.
What we aren’t being told (remember the Treasury refused to declare who the bailout money went to) is that most of these politicians had big investments, or ownership, in all these failing institutions.
If anyone thinks those institutions didn’t get bailout money first, then explain why we haven’t heard of any (DEM) politicians going suddenly broke.
And GM changes its mind about closing a facility in Barney Frank’s district after he makes a call. This is one of the most significant problems with cap and trade. The allocations of acceptable CO2 emissions will be made by the same folks for the same poilitical reasons. It is an invitation to corruption. The more government involves itself in the economy, the less rational and productive it will be.
How.... He has clout.
At this point, the government is the economy.
http://www.washingtonpost.com/wp-dyn/content/article/2008/12/11/AR2008121103719.html
Treasury To Invest In Ailing Bank - Small, Hawaii-Based Central Pacific To Get U.S. Funds
Washington Post, The (DC) - Friday, December 12, 2008
Author: Binyamin Appelbaum, Washington Post Staff Writer
Central Pacific Financial , a Honolulu bank recently told by regulators that it needed to raise capital to address its financial problems, this week said that it would get the money from an unlikely source: the Treasury Department.
The federal investment is part of the Treasury’s plan to inject $250 billion into financial institutions. Officials presented the program as a way to spur lending and said investments would be restricted to healthy banks.
But the inclusion of Central Pacific shows that the Treasury is investing even in ailing banks that may not be able to expand lending because they need the government’s money simply to cover projected losses. The Treasury has invested taxpayer dollars in all but one of the 25 largest domestic banks, including several that continue to lose money. It has allowed institutions to fund acquisitions and to pay dividends to shareholders. And in the case of Central Pacific , it is bailing out a company that otherwise would need to find investors willing to bet on a troubled bank.
Other institutions ordered by regulators in recent months to raise money failed to do so, forcing several to sell themselves or be seized.
Banking analysts said the decision to spare Central Pacific was particularly surprising in contrast with the one bank that the government has publicly turned away, National City of Cleveland, which was forced to sell itself to PNC Financial of Pittsburgh.
“It has raised a lot of eyebrows,” said Brian Gardner, an analyst with Keefe, Bruyette & Woods. “This clearly wasn’t a bank that was too big to fail. After National City didn’t get [federal] money, why would you give it to” Central Pacific ?
(snip)
There is probaly alot more of this crap going on in democrat circles than we will ever know!
It’s pay to play the Chicago Way!
God...I hope that the Tea Parties are HUGE!!
It’s time for Americans to stand up to this corruption in DC and the media!!
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