Government Integrity Project

CBC Chair Payne Rips Johnson's ‘Unethical Behavior’ But What About His Own?

Submitted by Peter Flaherty on Wed, 09/01/2010 - 14:08

Donald Payne photo Rep. Donald Payne (D-NJ), Chairman of the Congressional Black Caucus (CBC), issued a statement yesterday in response to the controversy swirling around the awarding of 23 scholarships by Rep. Eddie Bernice Johnson (D-TX) to relatives and associates. The statement read, in part:

Neither the Foundation nor the CBC will allow unethical behavior in the awarding of scholarships or any programs that are designed to benefit the community.

Also:

I will not allow the absence of integrity to invade the Foundation nor the scholarship program…

Payne had nothing to say about his participation in a 2008 Caribbean junket that he knew was funded by big companies like Citigroup in violation of House Rules.

Rep. Johnson Gave 23 Scholarships to Relatives and Associates

Submitted by Alana Goodman on Tue, 08/31/2010 - 17:57

Eddie Bernice Johnson photo Congressional Black Caucus member Rep. Eddie Bernice Johnson (D-TX) has admitted to steering 23 scholarships worth over $25,000 to two grandchildren, two great nephews and the children of a top aide over the past four years.

The scholarships came from a non-profit affiliate of the CBC called the Congressional Black Caucus Foundation, which Rep. Johnson sat on the board of from 2005 to 2008. The Texas congresswoman’s family members and aides’ children were considered ineligible for the scholarships under the foundation’s anti-nepotism rules.

Did Green ShoreBank Escape Bankruptcy?

Submitted by Paul Chesser on Fri, 08/27/2010 - 16:49

Shorebank logo It's been a week since the Federal Deposit Insurance Corporation swept away ShoreBank's bad assets (cost: $367.7 million), changed its name to Urban Partnership Bank, and left it largely in the hands of the same people (and investors) who ran it before. Since then there have been several articles that called the process and new arrangement "unusual." I guess institutions loved by two presidents call for special treatment.

Senator Murkowski Behind in Republican Primary; Voters Reject GOP Corruption?

Submitted by Peter Flaherty on Wed, 08/25/2010 - 10:21

Murkowski photo Alaska Senator Lisa Murkowski appears to be slightly behind Joe Miller, her primary challenger. AP reports that 16,000 absentee ballots were cast and will not be counted until August 31, so the winner may not be known for some time.

NLPC has been a critic of Murkowski and her relationship with associates of corrupt Alaska Republicans like the late Ted Stevens. On July 26, 2007 Murkowski announced that she would sell back an undeveloped piece of land that she purchased in 2006, one day after NLPC filed a Complaint with the Senate Ethics Committee alleging a “sweetheart deal.”

Political Pressure Saved ShoreBank Management

Submitted by Paul Chesser on Tue, 08/24/2010 - 18:55

Geithner photo Among other things, it looks like the Chicago lobbying to save ShoreBank paid off. Earlier this month I discovered a letter sent by Windy City power player and big Democrat donor Lester McKeever, Jr., to Treasury Secretary Timothy Geithner, which urged his intervention. "It is my hope," McKeever wrote, "and one shared by others who care deeply about its most vulnerable communities, that the ShoreBank recapitalization plan with investment coming from the U.S. Treasury will enable it to continue servicing its customers and fulfilling its mission."

Morgenthau Owned Nabors Stock When He Introduced Rangel to CEO Isenberg

Submitted by Peter Flaherty on Tue, 08/24/2010 - 18:38

Morgenthau Rangel photo David Kocieniewski reports in the New York Times that former Manhattan District Attorney Robert Morgenthau (at right with Rangel) owned stock in Nabors Industries at the time he introduced the company’s CEO Eugene Isenberg to Rep. Charles Rangel (D-NY). Isenberg made a $1 million pledge to the so-called Charles B. Rangel Center for Public Service at the City College of New York (CCNY) while Rangel helped preserve a tax break for Nabors worth hundreds of millions.

The Times cites information from my pointed questioning of Isenberg at the Nabors 2009 annual meeting. From the Times:

Rangel Fires Back at Obama; Attacks President’s Youth

Submitted by Peter Flaherty on Tue, 08/24/2010 - 12:01

Rangel Obama sign Rep. Charles Rangel (D-NY) has again responded to President Obama’s recommendation that he “should end his career with dignity.” Michael Barbaro reported yesterday in the New York Times:

At a tense and sometimes fiery candidates’ forum Monday night, Mr. Rangel shot back that it was not his dignity the president should be worried about.

“Frankly, he has not been around long enough to determine what my dignity is,” Mr. Rangel said of the 49-year-old Mr. Obama. “For the next two years, I will be more likely to protect his dignity.”

Sen. Dodd Took Up to Six VIP Countrywide Loans, Says Oversight Committee

Submitted by Alana Goodman on Tue, 08/24/2010 - 09:27

Dodd photo Sen. Christopher Dodd (D-CT) received up to six sweetheart home loans from Countrywide Financial, even though he has only publicly admitted to accepting two special deals, The Wall Street Journal reported on Friday.

The revelations were brought to light by the House Committee on Oversight and Government Reform, raising questions about a previous Senate ethics committee investigation into Dodd’s dealings with Countrywide that just disclosed information about two of the loans.

FDIC Seizes ShoreBank; Installs Management in New Bank

Submitted by Paul Chesser on Mon, 08/23/2010 - 17:12

Shorebank logo On Friday the Federal Deposit Insurance Corporation momentarily took over politically-connected ShoreBank, just long enough to relieve it of some of its woes and then turn it back over to the same people to continue its same failed mission. According to a press release, the FDIC Deposit Insurance Fund will take a $367.7 million hit in the transaction.

Rep. Maxine Waters Says Ethics Office is 'Sloppy'

Submitted by Peter Flaherty on Fri, 08/20/2010 - 14:38

Rep. Maxine Waters (D-CA), charged with violating House ethics rules, said today on ABC’s Good Morning America that the Office of Congressional Ethics (OCE) is "not very tight, they don't do very good work, rather sloppy work."