Remember Maxine Waters’ deranged criticism of bank executives a couple months ago? She sure sounded pretty strident.
Well, turns out she has her own questionable ties to the industry. Both her and her husband have owned shares in black-owned bank OneUnited — her husband still does — and at times Rep. Water has tried to get federal support for them, in one way or another.
WSJ: At a hearing on minority lending in 2007, Ms. Waters criticised regulators for not doing enough to help minority banks stave off mergers with non-minority institutions. The lawmaker said she had contacted the Federal Deposit Insurance Corp. in 2002 over such concerns and “I was told that there was nothing that could be done.”
In her 2007 remarks, Ms. Waters alluded to two banks, Independence Bank of Washington, D.C., and “another bank that was about to be acquired by a major white bank out of Illinois.”
Ms. Waters didn’t mention that OneUnited had been an unsuccessful suitor of Independence, which had been taken over several years earlier. The second bank, which she didn’t name, appears to have been Family Savings Bank of Los Angeles. In 2002, that bank backed out of a merger agreement with FBOP Bank of Oak Brook, Ill., and shortly afterward was acquired by OneUnited.
In January, Ms. Waters acknowledged she made a call to the Treasury on OneUnited’s behalf. The bank’s capital, which was heavily invested in shares of Fannie Mae and Freddie Mac, was all but wiped out with the federal takeover of the two mortgage giants, and the bank was seeking help from regulators.
OneUnited eventually secured bailout funds under the government’s $700 billion Troubled Asset Relief Program, which was set up later that month.
Meanwhile, in October the company was ordered to stop paying for a Porsche for one of its executives, as well as a beachfront home in California. Lovely.
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