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Barney Frank helped controversial black-owned bank gain money
U.S. Rep. Barney Frank yesterday defended helping Boston's OneUnited Bank land $12 million in federal funding, despite regulatory complaints its executives were getting "excessive" pay and even a Porshe for its CEO.Frank, head of the powerful House Financial Services Committee, acknowledged that last fall he inserted into the government's $700 billion Troubled Assets Relief Program bill specific language to help OneUnited, New England's only black-owned bank. He also said he contacted someone at the Treasury Department about OneUnited's application for emergency TARP funds, though he insisted he never asked Treasury to bend any rules on behalf of OneUnited. "I believe it would have been a very big mistake to put the only black bank out of business," Frank said in an interview. OneUnited was financially reeling from the federal government's takeover of Fannie Mae and Freddie Mac, both of which had their shares wiped out by the government action. OneUnited owned substantial shares in the two mortgage giants, Frank said. "It was a case of the federal government causing the problem," he said. But OneUnited was also facing regulatory scrutiny last fall from other government agencies, which later slapped a cease-and-desist order on OneUnited due to "unsafe and unsound banking practices." Regulators also complained of "excessive" executive pay at OneUnited - including a Porsche for use by CEO Kevin Cohee. OneUnited has disputed charges it had practiced "unsafe and unsound" banking practics. Posted by: Fred 2009-01-24 |
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