Political Interference Seen in Bank Bailout Decisions (Barney and the corrupt black bank)

wsj ^ | 1/22/2009 | DAMIAN PALETTA and DAVID ENRICH

[milwguy]

Troubled OneUnited Bank in Boston didn't look much like a candidate for aid from the Treasury Department's bank bailout fund last fall.

The Treasury had said it would give money only to healthy banks, to jump-start lending. But OneUnited had seen most of its capital evaporate. Moreover, it was under attack from its regulators for allegations of poor lending practices and executive-pay abuses, including owning a Porsche for its executives' use.

Nonetheless, in December OneUnited got a $12 million injection from the Treasury's Troubled Asset Relief Program, or TARP. One apparent factor: the intercession of Rep. Barney Frank, the powerful head of the House Financial Services Committee.

Mr. Frank, by his own account, wrote into the TARP bill a provision specifically aimed at helping this particular home-state bank. And later, he acknowledges, he spoke to regulators urging that OneUnited be considered for a cash injection.

Mr. Frank said he didn't try to interfere with the regulatory process. "We have never told the regulators that they should ease up on them or not order them to do this or that," he said.

He cites the bank's status as the state's only financial institution owned by African-Americans. "We did say, yes, I thought it would have been a social tragedy if the one minority bank in Massachusetts that has been working so hard and had been overextended into housing was to be wiped out by a federal action, the Fannie-Freddie preferred [shares] thing, and that's why I think it was important to try to help them."

[milwguy]

The last quote says it all. Barney Frank does not care about whether the bank was corrupt, lent moeny to deadbeats, and let their officers pay themselves huge salaries and drive around in new Porsches. He used the fact that they were a 'minority owned bank' to justify using our tax dollars to bail them out. If this is not a scandal, I do not know what is.

This is just a preview of what we can expect in the new Obama administration. "Post racial" means not questioning the racial patronage system that has been built up over the years by the likes of Barney Frank, Maxine Water's, Charlie Rangel, Jesse Jackson, etc.

To the victor goes the spoils, and we will see that on steroids under Obama. The 'foreclosure relief' program will be a race based means of distributing tax dollars to the Democrat base. It will be OneUnitedBank on steroids.

This is the link to the bank website.

https://www.oneunited.com/AboutUs/ChairmansLetter.asp

[musicman]

[PGalt]

Perhaps Bill O’Reilly can get him on again (and rip the POS to shreds Part II).

Lookin’ Out for the Folks BUMP!

[Tex Pete]

This is nothing that surprises any of us, but is disgusting nonetheless.

[mallardx]

Thank God the WSJ is reporting this, I do not expect to hear a peep from the super-corrupt lying media. I wouldn’t want to be part of the criminal media, they are going to be held accountable very soon, not even the corrupt Obama Administration will be able to calm millions of outraged Americans.