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Who would have imagined that the honorable Barney Frank, head of the House Financial Services Committee and chief culprit in the Fannie Mae/Freddie Mac disaster, would manipulate the bank bail-out for the benefit of his friends!?Reports theWall Street Journal: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.I am truly shocked, shocked to find politics going on on Capitol Hill!
Who would have imagined that the honorable Barney Frank, head of the House Financial Services Committee and chief culprit in the Fannie Mae/Freddie Mac disaster, would manipulate the bank bail-out for the benefit of his friends!?Reports theWall Street Journal: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...
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