Did Barney Frank Help Push Bailout Cash to Home-State Bank?

The Wall Street Journal explores the often opaque capital-injection process.

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Fascinating story in today's Wall Street Journal exploring the potential political factors behind the government's decisions as to which banks should receive bailout cash:

The Treasury had said it would give money only to healthy banks, to jump-start lending. But OneUnited had seen most of its capital evaporate. Moreover, it was under attack from its regulators for allegations of poor lending practices and executive-pay abuses, including owning a Porsche for its executives' use.

Nonetheless, in December OneUnited got a $12 million injection from the Treasury's Troubled Asset Relief Program, or TARP. One apparent factor: the intercession of Rep. Barney Frank, the powerful head of the House Financial Services Committee.

You really should read the full article. But with $700 billion earmarked for bailout purposes (so far), get ready to see stories like this for years to come.


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