Poor Lending Practices Rewarded With $12 Million


REGULATORY-SUMMIT/CONGRESS

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 being used for executives use.

Rep. Barney Frank spoke with a federal regulator to ask that OneUnited be given consideration for TARP money. Frank cited the fact that it was the only bank in the state owned by African-Americans. He was quoted as saying “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.” 

This came as a result of the attorney for OneUnited Bank complaining to Frank and Rep. Maxine Waters that the action by the Treasury Department had hurt the bank. Naturally, their poor lending practices didn’t hurt the bank, only getting caught at it did. Further, it just so happens that up until last spring, Rep. Waters husband Sidney Williams was a OneUnited Director. No conflict there right?

I really can stop writing here because of course you have to know what next happened right?

Yes, folks that is correct! on December 19, OneUnited received $12 million dollars from the US. Treasury. Regulatory officials sight them for poor lending practices and then less than two months later they reward them by infusing millions of dollars so they can continue on with their poor practices. It all makes sense, right? Or does it smell of favoritism with a little racism added in mixed with conflict of interest?

This whole TARP fund things is bogus, the money is being given out in ways that will not even begin to help us consumers or make a dent in this economic crisis we are in. We have Representatives like Barney Frank using the financial crisis as an excuse to shore up a politically favored bank in his district and not using it as a stimulus.

Now they want to pass through another $800 Billion? Good Grief!

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Published in: on January 26, 2009 at 4:49 pm  Leave a Comment  
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