The American Spectator : A Grandmother on Trial

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A Grandmother on Trial

By Ross Kaminsky on 8.11.10 @ 6:08AM

Maxine Waters' most vulnerable spot could be her undoing.

Ultra-leftist Congresswoman Maxine Waters (D-CA) faces three ethics charges (see official Ethics Committee document here) related to her attempt to get federal bailout money directed to a bank, OneUnited, in which her husband, Sidney Williams, was an investor. The value of Williams' ownership had dropped from over $350,000 at the end of June, 2008, to $175,000 in September, 2008, after the government put Fannie Mae and Freddie Mac into "conservatorship" (because OneUnited had substantial investments in FNM and FRE-backed securities.) Williams had also been a member of the bank's Board of Directors.

In September, 2008, Rep. Waters contacted former Secretary of the Treasury Henry Paulson to arrange a meeting which she apparently believed could help smooth the path toward OneUnited receiving cash from the government to compensate for the FNM and FRE losses. At one point, bank executives asked for $50 million.

Waters also contacted Barney Frank, Chairman of the House Financial Services Commitee, who told her to stay out of it. Waters said she would stay out of it, but proceeded to have her Chief of Staff continue to try to influence the process, both by contacting Treasury and contacting Barney Frank's staff.

In fact, Waters' Chief of Staff -- and grandson -- Mikael Moore, drafted potential legislation designed to get bailout money directed to OneUnited and sent the draft to OneUnited management.

A OneUnited Vice President exchanged e-mail with Mr. Moore about a "back-up strategy in case Treasury does not grant the specific relief" the bank wanted.

It appears that legislative language from Waters made its way into TARP legislation in the form of guiding Treasury to give assistance to financial institutions which met a particular set of characteristics which appear to have been satisfied only by OneUnited. (This is, of course, in addition to other institutions which the Treasury would be aiding based on other standards.)

In December, 2008, OneUnited received over $12 million in TARP money.

According to the key finding of fact by the Ethics Committee's investigation, "If OneUnited had not received this funding, [Waters'] husband's financial interest in OneUnited would have been worthless. Thus, the preservation of the value of [Waters'] husband's investment in OneUnited personally benefitted [Waters]."

The charges against Waters include:

• Violating House Rule XXII, which says, "A Member…shall behave at all times in a manner that shall reflect creditably on the HOUSE."

• Violating House Rule XXIII, which says, "A Member…shall adhere to the spirit and the letter of the Rules of the House and to the rules of duly constituted committees thereof," and "A Member may not receive compensation and may not permit compensation to accrue to the beneficial interest of such individual from any source, the receipt of which would occur by virtue of influence improperly exerted from the position of such individual in Congress."

• Violating the Code of Ethics for Government Service, which says that "any person in Government service should… never discriminate unfairly by the dispensing of special favors or privileges to anyone, whether for remuneration or not; and never accept for himself or his family, favors or benefits under circumstances which might be construed by reasonable persons as influencing the performance of his governmental duties."

In effect, Waters' charges stem from her "failure to instruct her Chief of Staff to refrain from assisting OneUnited after (Waters) realized that she 'should not be involved.'"

Waters filed a motion to dismiss the charges against her which the Investigative Subcommittee of the Ethics Committee (officially the Committee on Standards of Official Conduct) dismissed in July.

In a statement on her website last week, Waters said she has not violated any House rules and "will not be forced to admit to something I did not do." She also said that "the record will clearly show that in advocating on behalf of minority banks neither my office nor I benefited in any way, engaged in improper action or influenced anyone."

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About the Author

Ross Kaminsky is a self-employed trader and investor and is a senior fellow of the Heartland Institute. He blogs at Rossputin.com and is the host of The Ross Kaminsky Show on Denver's NewsRadio 850 KOA at 11 AM on most Sundays.

Letter to the Editor View all comments (28) | Leave a comment

Bill| 8.11.10 @ 8:03AM

Let the draining of the swamp began. Any way it happens is benefit. But in November let this great country pull the drain plug and get rid of all the sitting members who violate the constitution of this great country. May God Bless America.

WRTolkas| 8.11.10 @ 8:07AM

Wait and see - Nothing will come of Waters' or Rangel's ethics charges. As soon as the race card is played in Washington, all sins are forgiven. It's "whiteys fault," don't you know.

Remember November

"When you meet the Almighty, only truth will do." George Washington

ggoblue| 8.11.10 @ 8:38AM

i agree 100%

and i would rather they stayed right where they are. its better to deal with tainted leftists than the just as left replacements....

SouthernGirl| 8.11.10 @ 11:17AM

You are absolutely right, WRTolkas! When you're guilty as he-l, cast the shadow on your accusers as quickly as possible, and race is the best card for the shadow casting if you're an african-american in the corrupt Nation's Capital.
In this life or in eternity, we will all be faced with the truth and the light! No shadows, just naked truth!

WRTolkas| 8.11.10 @ 11:40AM

Dear SouthernGirl,

Your comment on the Waters' and Rangel's ethics charges reminded me of a quote from the Kingfish in the old Amos & Andy television show. The Kingfish was accused of larceny - his famous quote: " I resents the allegation, and I resents the alligator."

A distant mirror of what we are witnessing today in congress. Forty years ago on TV it was hilarious. Today in the halls of government it is just sickening.

Have a good week.

Louis Jenkins| 8.11.10 @ 8:35AM

And all of this doesn't help Waters one bit. The only thing that can help her is the race card, and she will play it one way or another. Too bad a WASP can't do the same although there are plenty of those in the mix too. Time to drain the swamp? These people have made the dam higher and better, the swamp just gets deeper, and the infestation of slimy creatures gets worse.

Ross Kaminsky| 8.11.10 @ 8:46AM

Given the make-up of Waters' district, she'll probably try to play this as if she's the victim. If she's found guilty, she might have to give up her subcommittee chairmanship but I don't think it hurts her chances of winning reelection in any way.

coal carrier| 8.11.10 @ 9:47AM

Ladies and gentlemen be careful, don’t be too critical. You could be labeled racists.

Eric Cartman| 8.11.10 @ 10:07AM

Hey, I heard Snoop Dogg has weighed in on the Waters controversy. Can't wait until I hear what he has to say!

RacerJim| 8.11.10 @ 10:25AM

Maxine Waters will indeed play the race card, and the victim card as well, in an attempt to obfuscate the facts/truth.

She should be booted out of office and have her government pension and healthcare plan revoked.

I've been called "RacistJim" on other message boards. Sticks and stones may break my bones but words [names] will never hurt me.

Ray| 8.11.10 @ 10:29AM

"[N[either my office nor I benefited in any way.'

Your married to the man who benefited from your office's involvement, aren't you? Well, if your husband benefited, then YOU also benefited! Marriage is a "two way street," remember?

James| 8.11.10 @ 10:42AM

What all the crackas are missing is that they are playing to their constituents, they could give a damn about middle America or white America. In the black community this is the stuff that African-American legends made of. It's the reverse universe the more counts , the more money they steal, and the more defiant they are the better, your just helping them.

Redstateboy| 8.11.10 @ 10:43AM

This is the best analysis I've read on this Story of Maxine (Freddie & Fannie are fine) Waters. She and Rangel are the Rats that are going to sink the Slave Party in November - there-by saving the Union.

Ross Kaminsky| 8.11.10 @ 1:31PM

Thanks for the compliment, Redstateboy.

Redstateboy| 8.11.10 @ 10:46AM

Marion Barry, Ray Nagin got re-elected... Rangel and Waters will be the same... it's indicative of what's going on in the Black Community. As LBJ was quoted to say about a Latin American dictator: "He may be a bastard... but he's Our bastard."

kate| 8.11.10 @ 11:01AM

This is just one more example of how no one in Washington understands Leadership. In the military, you are responsible as a leader for anything your subordinates do or fail to do. Its ingrained on your sense of duty that supervision is inherent in the job. "The buck stops here" really means something. Not just a saying to redirect fault onto a previous commander, oops, I mean Administration.
Wake up Waters. It was your fault. You did not mail the letter yourself (just as I'm sure Rangel didn't type the requests for funds himself) but your office, and your name, was behind it. This culture of 'not my fault' has got to stop.

Redstateboy| 8.11.10 @ 11:37AM

Bravo Kate!!

dac| 8.11.10 @ 11:53AM

Two words for you all: Marion Barry, aka, Washington DC's "Mayor for Life." He's on video, smoking crack in a hotel room with a hooker, and he's re-elected with wider margins every time he runs for public office. There is no public office in DC for which he would not be, overwhelmingly, elected.
The same will occur here with Rangel and Waters. Being a powerful thief, "sticking it" to whitey and "the Man," is the highest honor that an American black "leader" can achieve. It doesn't matter that now, "the Man" is also black, and his policies are busily destroying Americans of all colors, but disproportionately lower-income minorities. As long as the Barrys, Waters, and Rangels of the country can peacock to their hopeless constituents, who have been relentlessly taught that whitey owes them a living, nothing--nothing--they do will adversely affect their electability in their safe districts.
James has it exactly right.

james wilson| 8.11.10 @ 11:55AM

This is only a problem for the Democrat Party. There is no instance of a corrupt black politician being removed by his voters, quite the opposite. The Party will be forced to wear their boils in places where they are not so easily hidden, a permanent reminder of where all their roads lead.

Qwilly| 8.11.10 @ 12:35PM

If a reporter really wants to find corruption from this woman, they should do an investigation of the
Maxine Waters Job and Training center in south
central Los Angeles. In thirty years of government largest very few if anybody where trained, and none ever got a job. I did notice there
where plenty of gang members around just incase.

Oldefarte| 8.11.10 @ 1:44PM

These political situations [Waters, Powell, Rangel, Jefferson,etc] involving black politicians are all the same, with the corrupt actors involved always proclaiming their innocense and shouting RACISM, DISENFRANCHISMENT, DISCRIMINATION, GNETRIFICATION, or whatever. In their mind, they are owed these benefits [illegal activities] BECAUSE OF SLAVERY, and the applicable laws should not apply to their indiscretions. They see no RIGHT or WRONG [moral] issues involved, since non-African-Americans OWE IT TO THEM SINCE OUR FOREFATHERS ENSLAVED THEIRS!!!!

ntx_man| 8.11.10 @ 4:25PM

Amen Oldfarte, Rangle-Waters think they're due reparations and as such should be allowed interpret the law to their benefit. Ahhh.... don't the teats of government taste so good??!

ncatty| 8.11.10 @ 4:27PM

I have always trusted Maxine Waters because I knew she could be bought.

Believer| 8.11.10 @ 4:57PM

If you have any hopes for a November replacement for Waters you can for get it, The people in her district are not only dumb as rocks but probably havent even heard of the trouble she's in. They dont listen or read the News, just Hip Hop, Rap, and Situation comedy.

Cow Rie| 8.12.10 @ 12:25AM

WHAT? You people are succumbing to the "you'se a racsist" charge? Yawwwn. Pah-leeze.

It is time to pile in on Maxine the Ignorant Marxist.

Find a Progressive/Liberal Today. Target them. Go after them. Mock them. Prosecute them.

Marc Jeric| 8.12.10 @ 12:25AM

Not to worry - the Democrat majority will exonerate both of them; they will be re-elected by 95% majorities. NAACP together with the Black Caucus will acuse the accusers of racism. Just wait for "Reverends" Jackson, Sharpton, and Wright to claim "RACISM!"

Cincinnatius| 8.12.10 @ 9:43PM

You what the ironic part of Rangel and Water's ethics problem are? They actually believe that they are innocent! The corruption in Washington and congress is so prevalent that they do not think that they have done anything wrong. Rangel and apparently Waters are going to fight the charges against them, even though it is abundantly clear that they are guilty, is proof that the attitude of congress persons is that they are ABOVE the law and thus not accountable for any violations of which they are guilty. Both of these race baiters believe that they are "special" and thus not required to answer any of these charges. This is good for America, because the American people will start to realize that these people consider themselves above the American people.