By Boston Herald Editorial Staff | Saturday, January 24, 2009 | http://www.bostonherald.com
Ah, the dirty little secret is out. That $700 billion TARP (Troubled Asset Relief Program) bill was in part simply a variation on congressional pork - except this time the recipients were banks with friends in high places.
One of those powerful friends was Rep. Barney Frank (D-Newton), chairman of the House Financial Services Committee. And one of the recipients of a $12 million infusion of federal cash was the troubled OneUnited Bank in Boston - a bank that had already been accused of “unsafe and unsound banking practices.” Its CEO, Kevin Cohee had also been criticized by regulators for “excessive” pay that included a Porsche.
Frank admits he included language in the TARP legislation specifically designed to bail out OneUnited. He also acknowledges contacting officials at the Treasury Department about the bank’s bailout application.
“I believe it would have been a very big mistake to put the only black bank (in Massachusetts) out of business,” Frank said. Besides, he insists, “It was a case of the federal government causing the problem.”
Causing the bad loans OneUnited made? Or would that go back to Fannie Mae and Freddie Mac, which Frank so staunchly defended earlier on?
Frank has never failed to amaze us with his ability to defend the indefensible and to staunchly uphold the double standard. It’s his special talent.
Article URL: http://www.bostonherald.com/news/opi...icleid=1147407