House Financial Services Committee Member Files for Bankruptcy
- Posted on February 3, 2011 at 8:18pm by
Meredith Jessup
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Question: Why does a member of Congress, who can’t keep his own balance sheet out of the red, get a seat on the House Financial Services Committee?
The AP reports:
An eight-term Texas congressman who serves on the House Financial Services Committee has filed for personal bankruptcy and is blaming his family meat company for his problems.
According to federal bankruptcy court documents, Democratic Rep. Ruben Hinojosa has $2.9 million in liabilities, though he also has nearly $1.5 million in assets.
Most of the money Hinojosa owes — $2.6 million — is a claim by Wells Fargo Bank. The congressman says that is due to a loan he personally guaranteed for the H&H Meat Products Co., which went bankrupt.
The Financial Services panel has jurisdiction over legislation affecting banks. House aides and outside experts say the House has no rules forbidding a lawmaker who owes large sums to a bank from serving on that committee.
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Comments (41)
historypaper
Posted on February 4, 2011 at 2:32pmDemocratic Rep. Ruben Hinojosa lost his ass but is protecting yours?
Report Post »sjohn70037
Posted on February 4, 2011 at 2:00pmThese lowlifes get their hands on the Federal Treasury and spend it like its their own. I assure you that loan was dirty.
We have a piece-of-crap democratic congresswoman Eddie Bernice Johnson doing the same thing. These thieves deserve to be stripped of office and thrown in prison.
Report Post »RodT82721
Posted on February 4, 2011 at 12:09pmMaybe the Congressman was figuring on getting in on some of the lunch business for schools, that the Education Dept. is always increasing. They are providing 3 meals a day for the “children” now. They have to buy their meat somewhere, so why not from on of their own?
Report Post »That Nov. Election might have screwed up his plans to make a buck. It’s a lot harder to become anointed when in the minority.
Redistributor
Posted on February 4, 2011 at 11:23amFurthermore, Wells Fargo will need to make up the loss by charging more/higher fees to its customers. This will make his constituents vote for him again for sure…another 9th term I bet.
Report Post »Redistributor
Posted on February 4, 2011 at 11:21amSeems to be a conflict of interst but either way I dont give a rats ass about Wells Fargo or any other bank even though this guy is playing the system.
Report Post »Maglight
Posted on February 4, 2011 at 11:13amThis is like a big 450 pound land monster working as a personal traininer at a gym.
Report Post »temple62
Posted on February 4, 2011 at 10:56amAs a voting taxpayer and registered Republican I cannot find the words to truly express my utter disappointment and disgust for the current administration and congress. Both have failed the taxpayers and continue to fail. They do not deserve to be re-elected. Nor do they all deserve the “pay raises they voted for themselves”! In most job the “boss” gives employees an annual review of job performance which determines those who receive raises, salaries to be frozen, salaries to be cut by a percentage or termination to those who have not accomplished their promised goals. Here, we the people are the bosses and the administration and congress are our employees. And yet these career politicians select and approve their own raises without taxpayer approval? I am tired to the buzz word acronyms and incessant talk from both parties. I would like to see suitcases in all of their hands after the next election. Question: What part of curb the spending didn’t you hear?
Report Post »auburntaylors96
Posted on February 4, 2011 at 9:45amwhat a shock….a democrat who can’t handle money responsibly. who’da thunk.
Report Post »hud
Posted on February 4, 2011 at 10:17amMakes perfect sense to me.
Report Post »Jim in Houston
Posted on February 4, 2011 at 9:16amWhy doesn’t he ask the FED to print him some more money? This hilarious, a democRat who can’t manage money, who woulda think it?
Report Post »cece959
Posted on February 4, 2011 at 9:15amAnd we wonder how our once great nation has gone to hell in a handbasket? We are the idiots. We keep electing the same stupid, idiotic people and expect to get a different government.
Report Post »hempstead1944
Posted on February 4, 2011 at 9:14amApparently too dumb to steal enough to stay out of bankruptcy court ? Pretty pathetic ……
Report Post »jagr1850
Posted on February 4, 2011 at 8:19amthe way i read this the congressman was only going to pay back the loan if the business made money. he is taking the easy way out. this calls for an investigation ………..
Report Post »shellmen
Posted on February 4, 2011 at 6:21amCongress will not do a thing on this subject. You do understand that the guy YOU voted for is crook also.
Report Post »roguetea
Posted on February 4, 2011 at 5:08amrogue, Texans Empty Account
Report Post »Rules are rules, or-ahh, the lack of rules is the lack of rules. However, common sense ought to be sufficient rule to put this guy on the legislative sideline. But then we are talking Congress and the left side at that. A Texas meat packing house going bust over a 2.6 million loan sounds like a Ma and Pa operation. I mean, they always do it bigger in Texas, don’t they? This is one Democrat that obviously never learned how to bring home the bacon, after 16 years. This is one Democrat that obviously never learned how to cash in on a political favor, or make funds disappear into slush, or play the shell game. This is one, long term politician that seems to be unpopular. They wont even buy his steaks at home. So, I guess he is not a progressive… just the typical left leaner stacking up too much debt and lacking all business sense, wait, maybe he is a progressive. You got to speculate, or at least I do, is the meat house just a front to hide expenses, like campaigning, or paying of an election board? Might a pile of stench rise out of the defunct packing house? Also, a Congressman with sizable dept sounds like a vote that is up for sale. Texas, you can do better.
tea party, Own 11, ROGUE ON
justice
Posted on February 4, 2011 at 3:38amI think making a hefty check of 175,000.00 can re-pay his debt. Get a second or third job like the rest of tired Americans have to do to keep a float and feed their families. Coward.
Report Post »Northern
Posted on February 4, 2011 at 3:02amGot lots of free money for his folks. Especially after Owebama took over. No wonder America is almost bankrupt.
http://hinojosa.house.gov/services/federal-grants.shtml
Report Post »FreedomFighter2006
Posted on February 4, 2011 at 11:10amAmerica isn’t almost bankrupt… it is.
Report Post »Northern
Posted on February 4, 2011 at 3:01amA minor player in things I would think but just out of curiosity I looked into him a bit and he sure was good at grabbing the ‘free’ money – you should add it up and see the great gains they made in his district because he was a Dem and they were in control of everything ….. Never convince me his vote was not for sale
http://hinojosa.house.gov/services/federal-grants.shtml
Report Post »beekeeper
Posted on February 4, 2011 at 2:23amFrom the article:
“Most of the money Hinojosa owes — $2.6 million — is a claim by Wells Fargo Bank. The congressman says that is due to a loan he personally guaranteed for the H&H Meat Products Co., which went bankrupt.”
Wait, this it too good – he didn’t realize he was on the hook for the debt if the company defaulted? Does he understand that’s what it means to guarantee a loan, you know, like the Federal Government is fond of doing, like, with student loans, home mortgages, small business loans, etc…
Report Post »the_ancient
Posted on February 4, 2011 at 2:13amWith out knowing the full back story as to what happened to the Business and the reason it went bankrupt the comments and assumptions where are just well pointless.
If the guy did not have a “D” after his name I bet there would not even be a story about it here.
Report Post »beekeeper
Posted on February 4, 2011 at 2:26amHe guaranteed $2.6 M in debt when he only had $1.5 M in assets – how did he plan to cover the loss? And, does he apply this apparent “magic beans” logic to the government finances?
That is the interesting question, not the little “D” after his name.
Nice try.
Report Post »the_ancient
Posted on February 4, 2011 at 4:20amI am sure the “plan” was to grow the business and repay the loan.
You do understand that it is common to have 400% or more LTV right?
Commercial loans are not like your home mortgage.
Report Post »txpedrn
Posted on February 4, 2011 at 1:37amI bet he voted for the healthcare bill!
Report Post »lobster
Posted on February 4, 2011 at 1:30amWells Fargo had no problem taking Wachovia to the cleaners for 7 cents on the dollar. They have a license to steal so why not let them, Mr. Obama….
Report Post »DaytonConserve
Posted on February 4, 2011 at 1:01amWhat are the House rules regarding retention of his seat following the discharge of his debt to that bank through personal bankruptcy.
Report Post »EP46
Posted on February 4, 2011 at 5:17amIt will be the same as old Charlie Rangel writing the tax laws and not paying taxes…he will keep his seat and his money.
Report Post »chfields62
Posted on February 4, 2011 at 2:40pmHow is this any different than Tim Geithner running the IRS and not paying taxes or teh POS er POTUS running the country without ever having a real job??? Welcome to Obamaland
Report Post »cheezwhiz
Posted on February 4, 2011 at 1:00amSo when will Obama pay Wells Fargo the money its owed ?
Report Post »He really needs those latino votes, to punish their enemies you know and its already 2011
ohru12
Posted on February 4, 2011 at 12:57amDo you want to bet this demrat gets out of this scott free. Somebody smart would have never signed a personal note on a company with financial problems and taken it down before this happened.
Report Post »cheezwhiz
Posted on February 4, 2011 at 1:04amHe signed guarantee for his own family , he laundered the loan ..the business was a front.
Report Post »I’m guessing he got loan under the minority quota too.
Nevertheless , he’s not paying it back
AndMercy4All
Posted on February 4, 2011 at 12:55amLooks like Rep. Hinojosa (D-Tx) may need to dip into a little of that Federal Reserve quantitative easing magic for himself. I’m sure he can get in line for QE2, 3, 4, or wherever this is going …
Report Post »FoundersRedPill
Posted on February 4, 2011 at 1:26amHe still has an income, I think it fitting for the judge to have him pay back the loan (plus interest) at his income tax percentage plust 15.3% of his paycheck. That what we are all paying for the debt he voting on us.
Report Post »Creestof
Posted on February 4, 2011 at 7:27amwell…maybe he is honest. For myself, I see most of those politicians taking bribes for favors and manipulating things behind the scenes to make millions. Either he is honest…or…he just sucks at being a thief.
Report Post »Sheepdog911
Posted on February 4, 2011 at 8:52amI this POS were a Republican, his name would have had (R-TX) after it, which is a universal press standard, unless the reference make liberals look bad.
Report Post »taskmaster78
Posted on February 4, 2011 at 11:16amWelcome to Washington! It is obviously the lenders fault. Poor poor man.
Report Post »patriot4all
Posted on February 4, 2011 at 3:40pmHis buyers..um..comrades…um bribers..oops….Obama or someone will bail/buy him out. Watch and see.
Report Post »C.ChristieJ.Bolton2012
Posted on February 5, 2011 at 12:15am“House has no rules forbidding a lawmaker who owes large sums to a bank from serving on that committee.”
Report Post »Well the House should make some rules regarding it. ‘Never let a crisis go to waste’ – so use this crisis as the catalyst for change.