House Stretches in Maxine Waters' Probe

by John M. Curtis
(310) 204-8700

Copyright August 12, 2010
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            Charging Rep. Maxine Waters (D-Los Angeles) unspecified ethical breaches, the House Ethics committee overreached the facts, accusing the 19-term Congresswoman of egregious conflicts of interest.  Waters was accused to influencing the Toxic Assets Relief Program to bailout black-owned insolvent bank OneUnited where her husband, Sidney Williams, a former NFL player and ambassador to the Bahamas, held $500,000 in bank stock.  House Ethics Committee charged Waters with trying to peddle influence to former George W. Bush Treasury Secretary Hank Paulson, managing the $670 billion Tarp bailout funds.  Waters was accused of applying undue influence to secure Tarp

              Funds for a minority bank in which her husband held a substantial financial stake.  While Waters denies the charges, the record shows that the 71-year-old congresswoman only tried to get funds for OneUnited Bank. Those familiar with the House Ethic’s Committee say “the discussion centered on a single bank—OneUnited,” the same institution Waters’ husband was invested.  “You don’t use your chits for nothing.  You call when there’s an important issue,” said Waters to the House panel, referring to calling in the favor.  Waters apparently told an unidentified congressman that she knew she should say no or “stay out of it,” leaving OneUnited even more vulnerable.  “Stay out of it,” said an unnamed congressman told Waters, instructing her to not get involved.  According to the Ethics Committee, Massachusetts–based OneUnited received $12 million in Tarp bailout funds shortly after the meeting.  House investigators know that many minority-owned banks applied for Tarp bailout funds.  Waters rejects the panel’s charge, refusing to plea bargain or negotiate lesser charges.

            Calling the charges against Waters a “substantial reason” for filing charges, the burden of proof falls squarely on the Office of Congressional Ethics.  Waters knows that the panel mush show proof “beyond a reasonable doubt,” to prevail with censure, sanctions or possible impeachment proceedings.  “I have not violated any House rules,” said Waters in a prepared statement.  “Therefore, I simply will not be forced to admit to something I did not do and instead have chose to respond to charges made by the House Committtee on Standards of Official Conduct in public hearing,” notifying the committee that she intends to fight.  Based today on the ethics committee’s published reports, the case looks most circumstantial.  Neither Walters nor former Treasury Secretary Hank Paulson attended any meeting, applying any kind of pressure or influence to the decision to grant Tarp funds.

            Waters unspecified charges followed by only a few weeks 13 ethics violations against her colleague, 80-year-old, 20-term congressman Charles Rangel (D-Bronx), former head of the powerful tax-writing House Ways and Means Committee.  While Rangel’s problems stem largely from unreported income on residential real estate, Waters fall into a more murky territory.  “In sum, the case against me has no merit,” said Waters.  “No benefit, no improper action, no failure to disclose, or act improper in any way,” refuting the basis of the complaint.  Waters admitted to only “advocating on behalf of minority banks,” not applying pressure to the Tarp committee to receive special favors or preferential treatment because her husband, Sidney Williams, held $500,000 in OneUnited company stock.  Unless the House panel proves Waters’ influenced the Tarp committee, the charges will get tossed.

            Since charged by the House panel, Waters hasn’t lost too much credibility to her constituents.  “If it wasn’t’ for her, I couldn’t even be in school,” said Carol Jones, 51, after finishing her day’s classes at the Maxine Waters Education & Career Center, a tribute to how much clout Waters has done in her South Central Los Angeles district.  Considered among the most liberal members of Congress and the Congressional Black Caucus, Waters fought fiercely for President Barack Obama’s health care reform bill.  She strongly supports the president’s financial reform and seeks to end the wars in Afghanistan and Iraq at the earliest possible time.  Right wing media and certain GOP congressman could barely contain themselves following the charges.  They know that ethics charges, not convictions, against Rangel and Waters helps their chances heading into the midterm elections.

            Motivated by election year politics, the House Ethics Committee got ahead of itself charging Waters with influencing the Tarp bailout panel to pony up $12 million for Massachusetts-based BankUnited.  Whether or not her husband held stock in a failing bank can’t be regarded as the primary motive for issuing the bailout.  Numerous small and large banks received Tarp bailout funds.  Calling for her ouster as Chair of the House Subcommittee on Housing and Community Opportunity leaps way beyond the facts showing only that Waters requested help for a minority-owned business.  Before the House Ethics Committee wastes more time and money, they should consider approaching Waters for a face-saving way out.  She would probably agree that her husband’s holdings in BankUnited created an appearance of conflict-of-interest.  Anything beyond that doesn’t hold much water.

About the Author    

John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.

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