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Judicial Watch Files FOIA Lawsuit Against US Treasury, Did Barney Frank Overstep His Authority?

Tyler Durden's picture





 

Our activist friends over at Judicial Watch are just getting started. Recently, they filed a lawsuit against the US Treasury to "obtain records related to evaluation procedures used by the government to determine which financial institutions received funds from TARP. The focus of the inquiry is a potentially iniquitous $12 million cash injection provided to Boston-based OneUnited Bank, at the urging of Barney Frank.

The original FOIA had been filed on January 23, 2009, and here were the primary items of information sought:

Judicial Watch concludes:

As reported in the January 22, 2009, edition of the Wall Street Journal, the Treasury Department indicated it would only provide funds to healthy banks to jump-start lending. Not only was OneUnited Bank in massive financial turmoil, but it was also "under attack from its regulators for allegations of poor lending practices and executive-pay abuses, including owning a Porsche for its executives' use." Congressman Frank admitted he spoke to a "federal regulator" and Treasury granted the funds.

"TARP has created a whole new form of earmarking, where politicians lobby to receive mass cash infusions for special interests in their states. OneUnited Bank did not appear to be a suitable candidate for federal assistance until Barney Frank intervened and shook loose a $12 million TARP grant. The American people deserve to know if Congressman Frank's intervention improperly colored the decision to give precious tax dollars to his hometown bank," said Judicial Watch President Tom Fitton.

Zero Hedge welcomes this initiative to expose ever increasing and costly behind the scenes dealings, especially of a variety that should be made public under the auspices of the Freedom Of Information Act. The implications, such as the ensuing fallout if it is indeed demonstrated subsequent to the disclosure gleaned from this lawsuit that Barney Frank acted improperly, should hopefully be grounds for elimination of ongoing kickbacks arising from the abuse of taxpayer funding to prop the fringes of the Zombied financial system. As has been the case with Colonial, Guaranty and Corus, the perpetuation of the viability fallacy lasts only so long, and the final cost to the US taxpayer is not only much greater in the end, but carries the acute risk of impacting confidence in the financial system - the very thing that the FDIC and comparable organizations has been trying to foster since the crisis began.

hat tip hedging in

 


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Tue, 08/18/2009 - 11:08 | Link to Comment Harbourcity
Harbourcity's picture

Barney Frank is a professional politician and needs to go.  There should be limits on how long anyone can serve in any political position.  Does any even half believe Barney Frank cares about the US taxpayer and is not in bed with a half a dozen interest groups? 

Tue, 08/18/2009 - 11:16 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

in bed with a half a dozen interest groups

dude; LOL

Tue, 08/18/2009 - 11:48 | Link to Comment SV
SV's picture

Barney is like Teflon-Don... he's had all sorts of issues like hiring male prostitutes, then have them as aids (not like HIV), etc.  He'll get a hall pass for this too.  Viva Culture of Corruption!

Tue, 08/18/2009 - 11:50 | Link to Comment Harbourcity
Tue, 08/18/2009 - 12:13 | Link to Comment Project Mayhem
Project Mayhem's picture

He also sounds like Donald Duck.   This is reason enough to fire him imo

Tue, 08/18/2009 - 12:45 | Link to Comment VegasBD
VegasBD's picture

Single Term Term Limit. Elimates all career politicians and bring people from the community to DC. Doing whats right for the country would trump doing whats needed to get relected.

Tue, 08/18/2009 - 11:09 | Link to Comment mtremus
mtremus's picture

Confidence in this financial system.  You must be joking.  Look around, the system is crumbling right before our eyes.

Tue, 08/18/2009 - 11:13 | Link to Comment lizzy36
lizzy36's picture

Tyler,

"authroity"

Tue, 08/18/2009 - 11:13 | Link to Comment Sqworl
Sqworl's picture

What a waste of my taxpayer money.. As if, anything will come of this???  Dodd's VIP loot from Angelo...They don't eat their own..

Tue, 08/18/2009 - 11:15 | Link to Comment Sardonicus
Sardonicus's picture

yore spel chekkar is brokun

Tue, 08/18/2009 - 11:21 | Link to Comment MinnesotaNice
MinnesotaNice's picture

lol... but it must be hard to get all of these postings up in a timely manner so they are relevant to the issues at hand...  so we can cut him some slack

Tue, 08/18/2009 - 11:22 | Link to Comment Anonymous
Tue, 08/18/2009 - 11:32 | Link to Comment Anonymous
Tue, 08/18/2009 - 11:42 | Link to Comment MinnesotaNice
MinnesotaNice's picture

From 1970 to 2007 the terms earmarking, special interests, and 'in bed with ...' perhaps adequately described the situation.  But I think we have moved to a full-fledged oligarchy where our politicians have truly been captured by large companies... and the politicians are at the weaker end of the power gradient between the two.  The bravado and verbosity that we see in congressional hearings typify this... and demonstrate the lack of actual power our politicians have at this point against the large corporations... they are fearful of the large corporations can financially wield against them, esp. during re-election. 

Tue, 08/18/2009 - 12:31 | Link to Comment Howard_Beale
Howard_Beale's picture

And in 1960, we had Eisenhower's exit speech--warning of the military-industrial complex-- taking us back yet another decade. Just remember this quote from Senator Mark Pryor of Arkansas in 2008 who believes the scientific community is divided on the issue of evolution: "You don't have to pass an IQ test to be a senator". He hangs out on C street.

Tue, 08/18/2009 - 12:58 | Link to Comment MinnesotaNice
MinnesotaNice's picture

And what is it with this "C Street"... I think the public is starting to associate Christian fundamentalist politican with strange sex scandal.  You read about "The Family" and "C Street" on Wiki... and it looks even more pervasive and concerning... and odd.

Tue, 08/18/2009 - 16:14 | Link to Comment iphone (not verified)
Tue, 08/18/2009 - 16:51 | Link to Comment dnarby
dnarby's picture

NED spam

Tue, 08/18/2009 - 11:44 | Link to Comment D.O.D.
D.O.D.'s picture

I think we should move back to the old way of paying politicians, they don't get paid until their term ends, and after a review.. It just makes more sense...

Tue, 08/18/2009 - 16:51 | Link to Comment dnarby
dnarby's picture

DAMN fine idea.

Tue, 08/18/2009 - 11:44 | Link to Comment Anonymous
Tue, 08/18/2009 - 11:49 | Link to Comment Anonymous
Tue, 08/18/2009 - 12:10 | Link to Comment Anonymous
Tue, 08/18/2009 - 12:26 | Link to Comment Anonymous
Tue, 08/18/2009 - 12:26 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

A $12 million TARP grant??  A grant does not need to be paid back.  Now I really feel victimized.

Tue, 08/18/2009 - 12:42 | Link to Comment ewmayer
ewmayer's picture

Wongtime Congwessman (and Chaiw of the House Financiaw Sewvices Committee) Bawney Fwank impwicated in yet anothew awweged confwict of intewest? How compwetely appawwing and inappwopwiate fow a pewson in such a powewfuw position.

Tue, 08/18/2009 - 12:45 | Link to Comment Milton
Milton's picture

Waste of time.

Where's the $185 Billion that went to AIG?

Tue, 08/18/2009 - 13:36 | Link to Comment Anonymous
Tue, 08/18/2009 - 20:23 | Link to Comment Ich bin ein whatever
Ich bin ein whatever's picture

I have about as much respect for Barney Frank as I do for Steve "I must be an economist because I play one on TV) LIESman.

How in the hell does this human waste of space keep getting elected year after year?  Did he drug the water of the people in the state of Massachusetts, so they would keep electing his sorry ass?

Please!

Tue, 08/18/2009 - 20:32 | Link to Comment Ich bin ein whatever
Ich bin ein whatever's picture

I have to respond to my own post.

In case I offended anyone from Massachusetts, I am from the state of Connecticut, which I call the state of confusion.

Only a confused electorate would keep sending Chris Dodd's equally sorry ass back to Washington again and again and again and again....

I think there's something in the water here too.

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