Political interference in bailout? You don’t say
The Wall Street Journal came out with a report: Political Interference Seen in Bank Bailout Decisions.
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 …..
He cites the bank’s status as the state’s only financial institution owned by African-American (blacks). “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.
That fat ass slobbering pig Barney Frank raises his gigantic fat head again; this time he sends money we don’t have to a black-owned bank. The purpose was to use the financial crisis as an excuse to shore up a politically favored bank in Barney Frank’s district and not used as a stimulus.
Barney Frank has been a major contributor to this finanical mess. Look at what he said back in 2003 about Fannie Mae and Freddie Mac:
”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
Oh Really! Read the rest of that 2003 NY Times article. This guy can use a soap beating like that dude did in the movie Full Metal Jacket!
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- How much money have we, the taxpayers, already spent on government bailouts?
- Fannie, Freddie spent $200M to buy political influence
- Rudman Report on Fannie Mae and Freddie Mac in March 2006
Tags: 2003 ny times, bailout, barney frank, house financial services committee, housing, lending, oneunited, stimulus, tarp, troubled assets relief program, wall street journal
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