Congresswoman Maxine Waters (D-Calif.) on Friday was cleared of charges accusing her of using her political clout to reroute a $12 million federal bailout to a bank where her husband owns stock. House Ethics Committee members said Friday at a hearing their investigation found no violation by Waters, a senior member of the House Financial Services Committee.
With those pesky charges out of the way, Rep. Waters can now become the panel’s senior Democrat next year, or the chairwoman, if Democrats win control of the House. You know what this means, right? It means she will take over Rep. Barney “what housing bubble?” Franks’s spot once he retires.
The ethics panel did, however, come down on someone over the Waters’ accusation: the congresswoman’s chief of staff and grandson, Mikael Moore. The panel found he took actions in Congress in an attempt to help the bank and violated House standards of conduct. Moore likely will receive a letter admonishing him for his conduct but will not face more severe punishment, such as a reprimand, by the full House.
Yes. In response to taking actions that were in violation of House standards, Rep. Waters’ grandson will receive a strongly-worded letter.
Virginia Republican Rep. Bob Goodlatte, acting chairman of the panel specifically for the Waters case, announced the tentative findings at the hearing but noted the committee had not issued a final report.
Goodlatte said the committee was convinced that when Waters asked for a meeting at the Treasury Department to discuss financial help for minority banks, she believed she did so on behalf of all minority banks — not just OneUnited, where her husband owns stock. Goodlatte said the committee agreed with Waters’ assertion.
The acting chairman said that when Waters realized OneUnited was in serious trouble, she told then-chairman of the House Financial Services Committee, Rep. Barney Frank (D-Mass.) to handle any further matters in the case.
Goodlatte said, however, that Moore continued efforts in Congress to get committee help for OneUnited, even sending the committee staff an email saying, “OneUnited is in trouble.”
Moore defended his actions, saying he violated no House rules. He insisted his actions were not aimed at helping one bank.
Goodlatte said at the hearing the committee agreed with an outside counsel in the case, Billy Martin, that Waters should not be charged “because there is not sufficient evidence in the record to prove violations by a clear and convincing standard, which is necessary before formal sanctions are recommended in the House of Representatives.”
But when speaking of Moore, Goodlate said, “It is abundantly clear that Rep. Waters told Mr. Moore that he should not specifically assist OneUnited.” Goodlatte said there were “substantial issues of credibility” involving Moore.
The key issue in the case was whether Waters requested the meeting at the Treasury Department to assist an association of troubled minority-owned banks — as she contended — or whether she was trying to get a bailout for OneUnited, the bank where her husband is an investor.
She contended she had nothing to do with the government’s eventual decision to give OneUnited a $12 million bailout, and U.S. officials involved in the decision backed her up on that point. Ethics committee members ultimately agreed.
Waters had been under investigation since 2009, starting with the independent Office of Congressional Ethics. The case later shifted to the Ethics Committee, where it has caused much dissension.
The two committee lawyers who originally worked on the case were suspended by the panel’s former Democratic chairman, who accused them of meeting with committee Republicans while excluding Democrats.
In February, all five Republicans on the committee and the panel’s ranking Democrat withdrew from the case to avoid any questions about impartiality. In July, the committee named Martin, a Washington attorney, as outside counsel to investigate Waters’ conduct.
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The Associated Press contributed to this report. Front page photo courtesy the AP. This story has been updated.