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Troubled Waters

Her ethics troubles, in wake of Charlie Rangel’s, put new focus on the Congressional Black Caucus’s way of doing business.

Rep. Maxine Waters who may be facing a formal House of Representatives ethics trial over her activities on behalf of a bank, is just the most recent member of the Congressional Black Caucus to face such an investigation. Currently New York Rep. Charles Rangel is facing an ethics trial, following in the footsteps of ethically challenged Louisiana Rep. William Jefferson. Waters, the long-time Southern California representative, is, according to House sources, facing charges that she provided special access to OneUnited Bank, a Massachusetts based bank that is similar in its history to the notorious ShoreBank in Chicago.

House officials say the Waters investigation is focused on Waters’ activities in 2008, when House sources say she had communications with Treasury officials involved in determining whether OneUnited would receive $50 million in funds from the Troubled Asset Relief Program (TARP). Waters also serves on the House Financial Services Committee. Those communications are mostly phone calls, say sources, she had with her husband, Sidney Williams, a former board member of OneUnited and a current holder of at least $250,000 in bank stock, as well as with current OneUnited officials and with Treasury officials overseeing bailout program. OneUnited had lost millions in 2008 from holdings it had in Fannie Mae and Freddie Mac financial instruments; in the end, OneUnited received $12 million in TARP funds.

Waters has strenuously denied any wrongdoing in the case, and said her contacts — including setting up a meeting with Treasury officials on behalf of the National Bankers Association, a group of African-American banks and a longtime supporter of Waters and the Congressional Black Caucus — were in keeping with her longstanding assistance to community-based financial institutions. In that meeting with TARP officials, according to House sources, a OneUnited official with ties to the bankers’ association asked for TARP funds for OneUnited.

Waters’ troubles are also expected to lead to a greater focus on the group at the center of the Rangel-Waters scandals: the Congressional Black Caucus (CBC), made up of 42 members of Congress, but a caucus unlike just about any other on Capitol Hill.

“You want to know why caucus members like Jefferson and Rangel and Waters are in trouble?” asks a former Democrat staffer on the Ways and Means Committee. “It’s because they are so used to hitting up corporations and business associations for dollars for the CBC that they really don’t see a difference for what they do on their own. Rangel almost certainly saw no difference between hitting up companies for his own job-training program in New York and what he would do to steer money to the CBC.”

The staffer pointed out that the National Bankers Association, which Waters claimed asked for the meeting that is now at the center of her potential troubles, has been an active supporter of the CBC in the past.

Unlike many other caucuses on the Hill, which are in many cases informal associations of House members focused on specific issues, the Congressional Black Caucus is a financial powerhouse, with a 501(c)(3) foundation under its control, and a $4 million townhouse headquarters in downtown Washington, far from the prying eyes of Capitol Hill reporters. That townhouse’s mortgage was paid for in 2008 by a fundraising program that tapped dozens of U.S. corporations — including AT&T, General Motors, and Coca-Cola — for tens of thousands of dollars. Coca-Cola in the past has also underwritten the organization’s annual prayer breakfast.

Because the Congressional Black Caucus steers all those corporate dollars through its nonprofit, charitable educational foundation, it is not beholden to federal campaign finance rules. And that foundation has pulled in millions — more than $50 million, in fact, between 2004 and 2008.

In the past, the CBC has liked to portray itself as the “conscience of the Congress,” but in recent years, that conscience has been flexible depending on the issue and how much a corporation or trade association was willing to pay. “You may not be able to buy the whole caucus, but for a given issue or bill, all you really need are few of those members to support you,” says a current House Republican leadership aide. “Some of the negative talk is just jealousy that others caucuses can’t pull off this kind of fundraising, but much of it comes out of knowing that there is a quid pro quo going on there, and there isn’t much any of us can do about it.”

Even the CBC appears aware that its activities may be skirting around ethics rules. In May, the CBC sought to curtail the ethics procedures its own Democrat leadership put in place. Twenty members of the CBC signed onto a resolution that would roll back the powers of the independent Office of Congressional Ethics, which is overseen by a panel of private citizens. The OCE is empowered to initiate and investigate possible ethics violations, but cannot prosecute ethics cases. The OCE hands its findings and recommendations over to the House Committee on Standards of Official Conduct, which is comprised of congressional members and can conduct investigations, has subpoena power, and recommends penalties for lawmakers found in violation of House ethics rules. The OCE can also pass along its findings to other federal agencies should it deem it appropriate.

To date, the OCE has launched investigations of more than a dozen members of the Congressional Black Caucus, including Rangel. The CBC was also investigated for its annual members-trip to the Caribbean, which is paid for by the CBC Foundation. The CBC’s resolution sought to change the operations of the OCE, barring it from initiating its own investigations and requiring a sworn complaint by a citizen claiming first-hand knowledge of the alleged violation, barring referrals to the House Ethics office within 60 days of an election, and the sealing of all findings by the OCE from public view.

“If people want to know what Democrats are really nervous about if they lose the House, they just have to look at the OCE and what it’s doing,” says the House GOP leadership aide. “We’re going to take our hits, too, but there is a lot more dirt over on the other side of the aisle to be dug up in the coming years. I think Democrats believe the OCE is going to be far more empowered under our control than theirs.”

Letter to the Editor View all comments (60) |

Bil| 8.2.10 @ 7:06AM

Nancy may not drain the swamp but we the voters will start the drain this November and the Novembers to come.
Time for the people to take back their country.

vtwin| 8.2.10 @ 9:01AM

“Maxine Waters…Charles Rangel…William Jefferson.” No tea-bagger race baiting going on here. Move along, now.

Eric Cartman| 8.2.10 @ 9:15AM

vtwin seem to understand this teabagging thing pretty well, doesn't he/she (you just KNOW he's the fat tranny in the purple mini on the Gay Pride Float, don't ya?) Sounds like a professional to me. Wonder if he's a hamster abuser as well?

Stephanie| 8.2.10 @ 6:27PM

OUCH Eric! That was nasty!

chuck| 8.2.10 @ 9:27AM

Okay, so if you're black and corrupt, that's alright.

Maddox| 8.2.10 @ 9:44AM

The only color involved in this investigation is the "green" being stolen from U.S. taxpayers by the Democrat Party.
We should re-name them "The Money-Baggers."

JmsA| 8.2.10 @ 9:52AM

vtwin,

Playing the race card again, are we? That's all you've got. Just plain pitiful.

JmsA| 8.2.10 @ 10:00AM

wtwin,

Have you learn yet that the "Actuarial Publications" published by the government regarding Medicare and Social Security projections are arrived at through actuarial analysis, that is, statistics?

Tim*| 8.2.10 @ 10:37AM

Harley Dork attempts to Play The Race Card once again.

Zzzzzzzzzzz !

WhiteBikerTrash| 8.2.10 @ 10:53AM

Well, V-Twin, how's the Honda running? To communicate effectively there must be a Mutual understanding of the language used, so please describe your term "Tea-Bagger" and how it refers to the article. Now this article describes behavior of a group of people that define themselves as an exclusive race. whom may I ask is being racist in this action? Is it that you have a problem with their self identification or that you have no problem with their behavior? Ether way it seems that you're the "Tea-Bagger".

rainmaker1145| 8.2.10 @ 12:01PM

The possibility that the Congressional Black Caucus could be a corruption doesn't enter into this at all - has to be racism as everyone knows black people can't be corrupt.

JmsA| 8.2.10 @ 2:26PM

By the way, vtwin, there are also white politicians, such as Senator Ensign of Nevada, being investigated by the ethics committee. I guess that's an inconvenient truth, to borrow a phrase.

Bruce Berger| 8.2.10 @ 3:18PM

Vtwin is a coward.

drudge ette obama| 8.2.10 @ 7:15AM

I was unaware of the OCE and its private citizen status. I like it, but I imagine Maxine does not.

Isn't Maxine Waters the person who thought we had landed on the planet Mars?

The OCE is about to face the same storm that characterizes death penalty convictions as racist. It doesn't matter that you may have murdered an entire family in cold blood; rather, the race of the criminal is the real issue.

CB| 8.2.10 @ 8:04AM

...no, that was the illustrious rep. from my very own Houston, Ms. Sheila Jackson Lee, who made the Mars reference. She is a real piece of work....

SC Mike| 8.2.10 @ 7:25AM

The CBC will throw up the racism diversion to drag things out a bit, but this cast of characters, long-accustomed to using racial preferences to promote their economic interests, is overdue for a close examination, exposure, and taste of justice.

Let the sunshine in…

NavyBrat | 8.2.10 @ 8:24AM

Mike. They already have thrown up the race card:

http://www.politico.com/news/s.....40533.html

And I agree, this group of Castro loving, Israel hating commies is LONG overdue for a thorough airing out. Waters, Rangel, Jackson-Lee, & Mr. "Guam Might Tip Over" Hank Johnson are all an embarassment to the People's House. The travesty is that the same rubes that voted these schmucks in & KEPT them in will just vote for another jackass that will keep the gravy train of gub-ment goodies rolling through their districts. And the saga will continue.

JmsA| 8.2.10 @ 9:55AM

NavyBrat,

You're absolutely right. These hypocrite members of the CBC, are all Castro lovers, though the latter's dungeons are overflowing with black political dissidents.

Melvin| 8.2.10 @ 7:39AM

Political Corruption is about the most bipartisan issue that both Democrats and Republicans don't seem to have a problem with.

justasimplepatriot| 8.2.10 @ 7:55AM

Where does the Congressional White Caucus meet?

Clinton nee Publius| 8.2.10 @ 12:02PM

At Klan rallies in back of the SEIU local office.

Nobama| 8.2.10 @ 12:41PM

Haha. Liberals and their Plantation Politics.

The Bishop| 8.2.10 @ 8:05AM

I'm totally bumfuzzled at the attempt to tarnish the unblemished record of this beautiful representative of the oppressed. She's Miss March in the 2010 Hotties of Congress calendar. It would be disturbing indeed if she had to miss out on this year's swimsuit competition because of these allegations.

Stephanie| 8.2.10 @ 8:20AM

RACCCCISSSSTTTTT!!!!!!!!!!!!!!!!!!!
Can't you hear the screams already?

JmsA| 8.2.10 @ 9:57AM

Stephanie,

Yeah, loud and clear, by vtwin near the very top of the comments section.

skedaddle| 8.2.10 @ 8:20AM

I think we need to desegregate the congressional caucuses. It's not FAIR that the CBC has a $4 million townhouse while some majority-white caucuses have to meet in less swanky digs. Let the forced bussing begin.

Doctor Right| 8.2.10 @ 8:23AM

Obama is proving to be the "post-racial" President, but not in the way he had intended.

The ascendancy of Obama to the Oval Office has proven that for all intents and purposes, we are a "post-racial" society. In fact, we are probably the most successful multi-racial society that has ever existed. Oh sure...The Europeans love to drone on and on about how sophisticated and tolerant they are...when they're not killing Jews, that is...But I defy anyone to name one (1) prominent black politician from the U.K., or France, or wherever.

In any event, Obama's election has had an adverse impact on the "grievance industry". In short, many Americans, myself included, are sick of the listening to all the crap about what a racist society we are, and how minorities are constantly persecuted, and blah-blah-blah-blah-blah.

We're sick of it, we're not listening anymore, and what's even worse for the grievance industry is that we no longer feel compelled to hide our thoughts anymore, political correctness be damned.

Whether it's the battle against illegal immigration, the Shirley Sherrod episode (and she IS a racist), calling the NAACP racist (and they are), or going after crooked politicains who happen to be black (like Rangel and Maxine Waters), we're not afraid anymore, and we're not backing down.

If the left wants to call us "racists" (and we now know from the "Journolist" affair that that IS their plan, no matter the circumstances), then go ahead, you socialist piss-ants! Do it!

But you'd better be ready for the counter-punch, because it is surely coming.

So hats off to Obama for removing (partially) the stain of political correctness from our society. Now we whites no longer have to feel guilty because our great-great-great-great-great-great grandfather once bought a shirt made from cotton picked in plantations in the deep south in 1805.

'Bout dang time.

Mel Torme| 8.2.10 @ 11:44AM

Agreed, Dr., except in regard to the following:

"But you'd better be ready for the counter-punch, because it is surely coming. "

I don't think being called names is really a punch to begin with. I go back to my Kindergarten days, when I first heard the saying "sticks and stones may break my bones, but words will never hurt me." It's a damn shame that most conservative politicians were out sick that day when they could have been informed of this. Herr Eric Holder was inadvertantly correct when he called Americans cowards in regards to race.

I just don't know why people can't brush off the insults. Just ignore these people until they come up with their real punches. Then, it's time for the counterpunch.

thediva| 8.2.10 @ 1:47PM

I find it very interesting that some white folks are up in arms because they are being shown just how racist SOME people in this country can be.

You've had 18 months of "hearing about it" and you are ready to revolt. 18 MONTHS. And yet her it is 2010 and I was called a n*gger (in anger) the other day by an 40 year old white man.
Yes things has eased up on us, but that's because the focus is on mexicans.

It's really easy to get sick of the "blah blah blah" when you've only had to deal with it for 18 MONTHS. Heck look how long it took to get the Womens suffrage moment going and further still woman's lib. Come talk to me in 40-100 years.

jeffW| 8.2.10 @ 3:12PM

So you also agree with Vtwin that these charges are based on race? Yes , there are racist out there but what ever happend to judging somone on their actions? Liberals don't like that because then they have no argument to stand behind so they scream racist at every opportunity. You only show your lack of intellectual honesty by doing so and the "Race" card is losing its power. Some of us don't care if you call us racist anymore as it has become a weak argument. Present me some facts as to how they have been unfairly accused and leave off the race baiting.

Conservative Bob| 8.2.10 @ 4:34PM

The "race industry" has been screaming for most of my life.

It hasn't been 18 months it has been decades.

I suspect that the individual who called you names lost the argument well before he retreated to that tactic.

The NAACP dreamed up the whole Tea party racist thing to try to gain some attention and become more relevant while scoring points on a group they disagree with. Look at the discussions of their leaders a number of times over the past several of years, worrying about the present generation not sufficiently concerned with the ‘struggle’ and taking for granted the gains that have been achieved.

Not sure who is to blame specifically, individual race baiters like Sharpton or Jackson or the democrats in general who seek to paint anyone who disagrees with a particular position as a racist but the fact is frequent overuse and baseless character assassination have cheapened the term to the point of meaningless.

While someone who discriminates based on race or ethnicity is indeed a deeply flawed individual being called a racist hardly has meaning any longer.

Mel Torme| 8.2.10 @ 6:07PM

I've been called nigga, also, thediva. The thing is, I am a white guy, but I still didn't like being called a nigga. I don't appreciate being called a honky or cracker either (actually cracker doesn't bother me as much as a-hole), but, as I stated up above, it's just words.

Don't take it so hard. Sometimes people will call you names because they are pissed at you and just want to make you mad. I have been there myself, thediva, on both sides. It's be better if you could take it like a man and move on, instead of feeling like a victim.

Remember those lessons from Kindergarten, people.

Dman| 8.2.10 @ 7:50PM

Yeah? And I was called a "cracker" by a black man a few years back. Am I entitled to condemn ALL of you blacks in the next 40-100 years for this sins of this one black racist jerk? I'm so tired of these anti-Tea Party rim jobbers (since they're into gay sexual invective)....

Timothy L. Pennell| 8.2.10 @ 8:25AM

What a surprise. Another Chocolate Politician who's a CROOK. As the saying goes: You can take the Black Crook Politician out of the Ghetto.....
You know the rest.
Maybe THIS is why the BLACK CAUCUS was trying to get the Ethics Committee to EASE UP?
Ya think.
SIC SEMPER TYRANNUS!

Louis Jenkins| 8.2.10 @ 8:25AM

Maxine Water's brillance is about as deft as a crow bar. But she knows how to play the game. Yes, she'll throw the racist card into the mix, and hope that bamboozles the ethics committee a bit. Then she'll scream she didn't know that her compatriots were doing anything wrong, and of course, she can blame it on the accountants. Bottom line- a hand slap at best. That's what the Ethics Committee does.

Louis Jenkins| 8.2.10 @ 8:42AM

Just to prove the relationship from this AM's Drudge Report:

At one point earlier this year, all eight lawmakers under formal investigation by the House ethics committee, including Rangel and Waters, were black Democrats. All those investigations originated with the OCE, which can make recommendations — but take no final actions — on such cases.

Read more: http://www.politico.com/news/s.....z0vS4h6M5w

Ret. Marine| 8.3.10 @ 4:25PM

Wrong, the bottom line is we may well seee her off to the gates of hell where she truely belongs.

NavyBrat | 8.2.10 @ 8:31AM

All of these revelations about the misdeeds of the CBC reminds me of one of my favorite Stevie Ray Vaughan songs of all time, "Wall of Denial."

"The wall of denial
is fall'n down."

"Yeah its fall'n so hard,
down to the ground."

Besides having one of the best guitar parts of any song Stevie ever did, the lyrics are wholly appropriate in today's politics.

Doctor Right| 8.2.10 @ 8:40AM

It's high-time we had a Congressional Euro-American Caucus with 501-C3 and the ability to extort money from corporations, too...Don't ya' think?

SC Mike| 8.2.10 @ 9:16AM

Doc -
It's time to shrink the government and end the extortion by all.

Maxwell| 8.2.10 @ 9:51AM

SC Mike

I'd love to see a presidential canadate from our side come along and say, I'll cut the size of the federal government by 50%, flat tax so everyone pays something (no more 40% pay mothing AND get a rebate) and lastly cut back on all of the entitlements not to mention the new Obama health care. Lastly, a way to get industry to relocate back here with a tax rate that is lower than what it is now.

But what do I know, I'm just a grunt.

chuck| 8.2.10 @ 11:45AM

Substitute the FairTax for the flat tax and you got a winner.

Clinton nee Publius | 8.2.10 @ 12:03PM

Sounds nice. Won't work, but sounds nice.

Maddox| 8.2.10 @ 9:38AM

Now that oughta get some attention!
That is a HUGE group and could certainly sway opinion.

Len| 8.2.10 @ 10:02AM

We already have something like this, only it works in reverse.

antidote| 8.2.10 @ 10:07PM

You must be kidding. Are you really that idiotic? The country has been run for last 150 years by Euro-American caucus, and they have extorted plenty from corporations is those years. They wrote the book on corruption. Corruption is rampant in Congress and has been for years. Most have represented corporations and their interests, not the people. Don't try a make this a partisan or a race problem, it is the only area where congress is truly, completely, totally bipartisan and color blind!

Joe D.| 8.2.10 @ 9:42AM

Please have them continue. And why don't you start looking at the heads as well. There is plenty of dirt in Pelosi & Reid's backyard. They talk about cutting off the head and the rest will fall.

George True| 8.2.10 @ 11:13AM

I have always been offended to my core that something like the Congressional Black Caucus is even allowed to exist. If I were king of America, I would tell each and every one of its members that they were elected to represent the interests of ALL of the citizens in their district, not just the black ones. As such, congressmsn forming an interest and lobbying group based on race is unconstitutional, flies in the face of everything this country was founded on, and will no longer be permitted. Well, I can dream, can't I?

Wayne| 8.3.10 @ 11:23PM

I agree. I'm a Canadian and just can't fathom the fact that so few people question the very existence of CBC in this day and age.

Bill from WV| 8.2.10 @ 1:46PM

What I find interesting is you NEVER,NEVER hear these people plead their innoccence, just bitch because they are indivted because they are black. Indictments kn ow no color and if they were innoccent ,pleasd innocent don't yell" I'm black you should let me go!
Don't do the crime if you don't want the time!
Black,white green ,yellow ,brown,muslim. christian,atheist. If your dirty you need to go to jail, be disbarred and banned from ever holding public office!

dw| 8.2.10 @ 2:21PM

Now it is dems calling dems racist or marxist calling fellow marxist racist, to be more accurate.
Doesn't affirmative action dictate that no black official can be charged with any ethical or criminal violations? Doing so automatically implies racially motivated behavior.

jstwndring| 8.2.10 @ 3:43PM

Umm...The inmates are running the asylum. These are pretend trials to make it look like the Dims are cracking down on corruption, and yet, nothing will come of any of them. Talk about culture of corruption. The DemocRat party has a lock on it. Look at Pelosi. She shouldn't even be able to hold public office since she was found guilty of bribing her collegues to get her to the then, House Minority leadership position. Her penalty? A paultry $20,000 fine! Ridiculous! She is wealthy beyond imagination, and she pays what would be to the rest of us, a 10-cent fine, AND she got to keep her office! WTF?! I would love to see her go down in flames some day, but, she represents you idiots in California, so, it's not likely to ever happen. Can we forceably remove California from the union? Also, can we find a way to physically remove it from our continent and set it adrift at sea? Please???????

coal carrier| 8.2.10 @ 5:30PM

Yeah. Let's sell it back to Mexico and use the money to build a new fence.

scythe| 8.3.10 @ 6:17AM

Being black certainly has its advantages. Perfecting the shakedown to an art form and using it over and over again for decades with impunity seems to have given the members a sense of power and immunity in all areas of their lives. That's the thing with racial politics. It allows the privileged to get away with as much as they can and even when caught red handed compels them to think all they have to do is continue to play the race card for another get-out-of jail-free moment. There SHOULD NOT BE A CONGRESSIONAL BLACK CAUCUS. THAT IS THE GENESIS OF THE PROBLEM. In this day and age, racial groupings (clubs) in Congress should be forbidden. If a White Congressional Caucus would be found offensive, a black one should be also. Same principle.

rdman| 8.3.10 @ 2:03PM

When the Bush Administration in 2003-04 warned Freddie and Fannie 17 times that their numbers were outside standard accounting practices, both Chris Dodd, friend of Angelo and Barney Frank claimed that Freddie and Fannie were rock solid and the Bush administration was just trying to cause trouble.

And who told the Bush administration to butt out?… Messrs. Raines & Johnson, Congressmen Dodd and Frank were doing a wonderful job… well, no other then the Esteemed and Honorable Marxist MAXINE WATERS from Los Angeles, California who has accomplished virtually nothing for her Watts constituents... except for her own family's bank account.

VOTE these shameless, despicible crooks out of OUR government!!

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