Maybe you see the problem here:
US Representative Barney Frank of Massachusetts urged Representative Maxine Waters of California to avoid any dealings with Boston-based OneUnited Bank because her husband owned stock in it. But the congresswoman didn’t heed his warnings, according to a House ethics report released yesterday, and now faces a possible trial before her colleagues over a conflict of interest with the bank.
The 79-page report by the Office of Congressional Ethics said Waters confided to Frank that bank officials came to her for help in 2008. But she felt conflicted because her husband, Sidney Williams, had served on the board of OneUnited from 2004-2008 and was a stockholder. It is against House rules to use one’s power as a member for personal financial gain.
Anyway, the bank in which Waters and her husband were involved had a rather strange interpretation of “community service”:
The case renewed attention on OneUnited, the nation’s largest minority-owned bank, which has been dogged by financial and governance troubles since the financial crisis erupted in the fall of 2008.
The bank lost $50 million on investments in Fannie Mae and Freddie Mac . . . and was sanctioned soon after by bank regulators, who charged that it had employed poor standards on loans and documentation. Regulators also chided the bank’s top executives for taking excessive pay and perks, including a $6.4 million beachfront mansion in Santa Monica the bank says it used to conduct business. . . .
In fact, the bank was making very few home loans in recent years, according to a Globe review. The handful of mortgages the bank did write were mainly to wealthy clients in tony locations, including the South End and Martha’s Vineyard, despite the bank’s stated mission to support Boston’s urban communities.
Of course, there’s nothing wrong with “wealthy clients in tony locations,” but isn’t it ironic that Waters — who militates constantly in the name of social justice to the poor — should get entangled in ethics charges over a bank that seems mainly to have been interested in helping the rich?