Maxine Waters

Letters Bolster Waters' Claim On Bank Conflict

Zachary Roth | March 13, 2009, 5:08PM

Rep. Maxine Waters is stepping up her campaign to show she took no inappropriate action on behalf of OneUnited bank.

Waters' office has released to TPM two letters sent by the National Bankers Association (NBA), a trade group for minority-owned banks, to the Treasury Department, in reference to a September 2008 meeting Waters had helped set up between NBA and Treasury. The letters appear to back Waters' contention that the meeting, at which OneUnited's CEO reportedly asked explicitly for bailout money, was not set up exclusively to help OneUnited, but rather on behalf of minority-ownded banks more broadly.

That doesn't contradict anything the New York Times reported, it's worth noting. But it does appear to bolster Waters' claim, made in a statement she put out earlier today, that she wasn't looking out for OneUnited's interests above those of other minority-owned banks. Waters has long been an advocate in Congress for minority-owned banks.

Waters also released a 2007 document showing that she disclosed her ties to OneUnited -- her husband had previously served on the board, and owned stock -- before questioning witnesses at a House hearing on minority-owned banks.

It seems clear that Waters should have disclosed those ties again when she set up the 200 meeting. But it also appears that that meeting, which Waters has said she didn't attend, was arranged on behalf of minority banks broadly, not as a way to benefit OneUnited.

Given the general level of greed and hypocrisy we've seen in regard to the bailout, this looks at this point like a minor misstep.

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Topics: Bailout, Financial Crisis, Maxine Waters, Treasury Department

Maxine Waters

Waters: I Didn't Take Improper Action For Bank

Zachary Roth | March 13, 2009, 2:15PM

Yesterday we noted a report by the New York Times about Rep. Maxine Waters' ties to OneUnited, a bank that got bailout money after Waters set up a meeting between Treasury Department officials and the heads of minority-owned banks, including OneUnited's CEO.

Now Waters is pushing back.

In a statement on her website, Waters asserts that the stories "revealed one thing: I am indeed an advocate for minority banks. Despite my public and consistent advocacy, news reports suggest that somehow I have acted improperly."

The full statement follows after the jump...

Read more »

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Topics: Bailout, Financial Crisis, Maxine Waters, Treasury Department

Maxine Waters

Report: Waters Set Up Treasury Meeting For Bank She Had Ties To

Zachary Roth | March 12, 2009, 5:56PM

This doesn't look good....

The New York Times reports that last September, Rep. Maxine Waters (D-CA) set up a meeting with Treasury Department bank regulators for several minority-owned banks, including OneUnited, one of the nation's largest black-owned banks. At the meeting, OneUnited's CEO, Kevin Cohee, bluntly asked the officials for $50 million in bailout money.

But what Waters didn't disclose was that her husband, Stanley Williams, had served on the bank's board of directors until early 2008, and has owned at least $250,000 in stock in the bank. Treasury learned that fact only later.

One official told the Times:

"It angers me. You got to know you have to be careful when you are dealing with people who you have personal relations with.

In the end, OneUnited didn't get that $50 million, but it did get $12 million in TARP funds, becoming the first minority owned bank to cash in through the program.

This is hardly the first allegation against OneUnited. Adds the Times:

[I]t had been harshly criticized by regulators in 2007 for failing to give a sufficient number of loans to lower income residents in Miami, while favoring wealthier customers there.

And:

[T]he F.D.I.C. sanctioned the institution in October 2008 for "unsafe or unsound banking practices," including excessive compensation for Mr. Cohee. The bank had provided him with a 2008 Porsche SUV and maintained his $6.4 million beachfront compound in Santa Monica. Calif., with views of the Pacific and a spa and pool.

For his part, Cohee suggested to the Times that race is at the heart of the issue. "This is where the race issue comes in," he said.

The Wall Street Journal detailed some of the ties between Waters, who sits on the House Financial Services committee, and OneUnited, in a report (sub. req.) published earlier today.

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Topics: Bailout, Financial Crisis, Maxine Waters, Treasury Department