Barney Frank Interference In Bank Bailout
Tarp Money Helping America Or Congressmen?
Socialist Barney Frank was intimately involved in crafting the legislation that created the $700 billion TARP financial-system rescue plan. Socialist Frank says that in order to protect OneUnited bank, he inserted into the bill a provision to give special consideration to banks that had less than $1 billion of assets, had been well-capitalized as of June 30, served low- and moderate-income areas, and had taken a capital hit in the federal seizure of Fannie Mae and Freddie Mac.
On Oct. 27, the FDIC and Massachusetts bank regulatory officials, alleging poor lending practices and executive-compensation abuses by OneUnited, slapped it with a strong enforcement action, a cease-and-desist order. Among other things, the officials told the bank to get rid of a 2008 Porsche for executives.
Socialist Frank says he spoke with a federal regulator and asked that OneUnited be given consideration for TARP money. Frank 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."
OneUnited lawyer, Robert Cooper, says he called Rep. Frank and Rep. Maxine Waters of California, both Democrats, to complain that the Treasury's move had hurt the bank. Rep. Waters heads the House Financial Services subcommittee on housing, and until last spring her husband, Sidney Williams, was a OneUnited director.
On Dec. 19, OneUnited received $12 million from the Treasury. Rep. Waters said she was unaware that the bank received money. OneUnited was "just a small" bank, she said.
A political firestorm erupted in Ohio when it became clear the government had turned down National City, a 163-year-old bank with deep roots in Cleveland. Ohio's congressional delegation sent dozens of letters to Messrs. Dugan and Paulson and threatened to hold hearings on how the Treasury had supposedly wrecked a bank they said wasn't in immediate danger of collapsing.
Some lawyers, bankers and analysts say the case marked a turning point in the Treasury's handling of capital injections. For one thing, since then, some weak regional banks have pocketed billions of dollars in TARP funds. In addition, Ohio banks are now faring better. Twelve Ohio banks have subsequently received a total of $7.7 billion in taxpayer funds. In neighboring Michigan, like Ohio, hurt by the auto-industry slump, only two banks have had federal infusions and a third has preliminary approval, for infusions totaling $638 million.
The regulator forwards the application; then the Treasury decides whether to approve it. If the Treasury's reviewing team is uncertain, it sends the request to a panel of federal regulators to debate the matter. The results have many in the industry scratching their heads. Two banks in Green Bay, Wis., have received federal investments yet in Arizona, a state hit hard by the housing slump, officials say they are perplexed that a dozen or so state-chartered banks haven't heard back from the Treasury about the status of their applications.
Arizona's banking superintendent, Felecia Rotellini, says she is teaming up with local bankers and state legislators who plan to start lobbying Arizona's congressional delegation for help. "Some states are getting better treatment, and we just want it to be a level playing field," Ms. Rotellini says. "I think it's just a question of advocacy. It has to be a congressional voice."
America our tax dollars aren’t helping the banks that need help they are being earmarked to help out those banks who’s Congressmen have an interest in. This isn’t helping the economic crisis, this is making the crisis worse. This is more Congressional meddling to help a few instead of helping America. Socialist Frank and his friends destroyed the economy and now keep destroying the economy. The TARP money for bank bailout is being selectively used for some Congressmen’s banks not for the good of all of America.
Join with us America to protect your rights, your country, and your money. We are ready to defend our rights and tell the truth the socialist press won’t tell you. Comment here and email us at YourVoice@speaknowamerica.org. Help us and be part of bringing our Great country back.
Speak Now America! we want to hear from you.
Socialist Barney Frank was intimately involved in crafting the legislation that created the $700 billion TARP financial-system rescue plan. Socialist Frank says that in order to protect OneUnited bank, he inserted into the bill a provision to give special consideration to banks that had less than $1 billion of assets, had been well-capitalized as of June 30, served low- and moderate-income areas, and had taken a capital hit in the federal seizure of Fannie Mae and Freddie Mac.
On Oct. 27, the FDIC and Massachusetts bank regulatory officials, alleging poor lending practices and executive-compensation abuses by OneUnited, slapped it with a strong enforcement action, a cease-and-desist order. Among other things, the officials told the bank to get rid of a 2008 Porsche for executives.
Socialist Frank says he spoke with a federal regulator and asked that OneUnited be given consideration for TARP money. Frank 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."
OneUnited lawyer, Robert Cooper, says he called Rep. Frank and Rep. Maxine Waters of California, both Democrats, to complain that the Treasury's move had hurt the bank. Rep. Waters heads the House Financial Services subcommittee on housing, and until last spring her husband, Sidney Williams, was a OneUnited director.
On Dec. 19, OneUnited received $12 million from the Treasury. Rep. Waters said she was unaware that the bank received money. OneUnited was "just a small" bank, she said.
A political firestorm erupted in Ohio when it became clear the government had turned down National City, a 163-year-old bank with deep roots in Cleveland. Ohio's congressional delegation sent dozens of letters to Messrs. Dugan and Paulson and threatened to hold hearings on how the Treasury had supposedly wrecked a bank they said wasn't in immediate danger of collapsing.
Some lawyers, bankers and analysts say the case marked a turning point in the Treasury's handling of capital injections. For one thing, since then, some weak regional banks have pocketed billions of dollars in TARP funds. In addition, Ohio banks are now faring better. Twelve Ohio banks have subsequently received a total of $7.7 billion in taxpayer funds. In neighboring Michigan, like Ohio, hurt by the auto-industry slump, only two banks have had federal infusions and a third has preliminary approval, for infusions totaling $638 million.
The regulator forwards the application; then the Treasury decides whether to approve it. If the Treasury's reviewing team is uncertain, it sends the request to a panel of federal regulators to debate the matter. The results have many in the industry scratching their heads. Two banks in Green Bay, Wis., have received federal investments yet in Arizona, a state hit hard by the housing slump, officials say they are perplexed that a dozen or so state-chartered banks haven't heard back from the Treasury about the status of their applications.
Arizona's banking superintendent, Felecia Rotellini, says she is teaming up with local bankers and state legislators who plan to start lobbying Arizona's congressional delegation for help. "Some states are getting better treatment, and we just want it to be a level playing field," Ms. Rotellini says. "I think it's just a question of advocacy. It has to be a congressional voice."
America our tax dollars aren’t helping the banks that need help they are being earmarked to help out those banks who’s Congressmen have an interest in. This isn’t helping the economic crisis, this is making the crisis worse. This is more Congressional meddling to help a few instead of helping America. Socialist Frank and his friends destroyed the economy and now keep destroying the economy. The TARP money for bank bailout is being selectively used for some Congressmen’s banks not for the good of all of America.
Join with us America to protect your rights, your country, and your money. We are ready to defend our rights and tell the truth the socialist press won’t tell you. Comment here and email us at YourVoice@speaknowamerica.org. Help us and be part of bringing our Great country back.
Speak Now America! we want to hear from you.
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