From the Wall street Journal online (by way of Yahoo! finance):
“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 andexecutive-pay abuses, including owning a Porsche for its executives’ use.”
Representative Barney Frank (Democrat, Massachusetts) has apparently been interfering with TARP decisions. According to this article, “Troubled OneUnited Bank in Boston” received $12 million in TARP funds due to the actions of Frank.
“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”
The sickening part of all this is that Barney Frank is making the rounds on news programs accusing the Bush administration of failing to provide proper oversight of the TARP funds! It’s bad enough that members of congress get a pass on their actions and the ultimate results of those actions, but it’s absolutely disgraceful to point the finger of blame and play politics with something as serious as we’ve been told the TARP bailout is.
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