Democratic Rep. Won't Subpoena BofA Over Records That Could Damage Him

California Republican Representative Darrell Issa is another public figure hot on Bank of America’s tail.

And this time it doesn’t have anything to do with the Merrill acquisition, which is what most folks are concerned with.

His concern is Countrywide’s old and controversial “VIP” program, which channeled sweetheart loans to influential figures.  Issa is looking to subpoena the bank to see if there are recordings between Countrywide and some of the politicians who may have received the mortgages.

According to the Journal: “So far, the committee’s chairman, New York Democratic Rep. Edolphus Towns, has turned down that request.”

Why has Towns, who has been something of a crusader on financial issues, stiff-armed Issa? Is it to protect his Democratic colleague Chris Dodd, who was known to have been part of the program?

At the very end, we read:

In August, The Wall Street Journal reported that Mr. Towns, the oversight committee chairman, had received two mortgages from Countrywide — one on his home in Brooklyn and the other on a house in Florida. The loan documents indicated that both had been processed through the VIP unit. At the time, a Towns spokeswoman said his decision not to subpoena the VIP records had “nothing to do with his mortgages.” If the mortgages, which were originated in 2003, came through the VIP unit, Mr. Towns was unaware of that fact and never asked for special treatment, the spokeswoman said.

Ah, so this time BofA’s being protected because a central figure may get in some personal hot water.

As for the tapes, a spokesman said the bank was “unable” to say for sure whether they’ve been destroyed.

Read the whole thing >

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.