Brad Miller, Congressman, Compares Rep. Patrick McHenry, Republicans To Keating Five

WASHINGTON -- Rep. Brad Miller (D-N.C.) blasted congressional Republicans on Thursday, including fellow North Carolinian Rep. Patrick McHenry, comparing them to the notorious Keating Five, five senators disgraced for intervening to protect financial fraud felon Charles Keating from regulatory scrutiny in the 1980s.

Miller's consternation comes after the Nation obtained a letter sent by McHenry to the new Residential Mortgage-Backed Securities Working Group -- a panel tasked with investigating banking fraud associated with the 2008 Wall Street crash. Miller argued that McHenry and other Republicans are improperly interfering with regulation and criminal investigation of the financial industry.

"There's a pattern here," Miller said in a statement released to the Nation and HuffPost. "Congress has a proper oversight role even into criminal investigations, but there’s a point where oversight ends and interference begins. I really cannot see a difference between what congressional Republicans are doing now to hinder regulatory and even criminal investigations of the financial industry, obviously on behalf of the industry, and what the Keating Five did a generation ago.

"I suspect that what is different is not the conduct but the ethical standards in Congress, and even more disturbing, what the nation expects of Congress," Miller continued. "A generation ago regulators made a grave error in giving in to political intimidation. I hope the Department of Justice will not repeat that error."

Miller wrote his remarks in response to a letter the Nation exclusively obtained in which McHenry reportedly asked the the working group seven questions and emphasized that the House Oversight and Government Reform Committee has the authority to investigate "any matter" it chooses.

In his letter, McHenry asked the new Working Group how its work will differ from the Financial Fraud Enforcement Task Force created by Obama in 2009. "Please distinguish in detail how the work of the Residential Mortgage-Backed Securities Working Group will differ from the existing work of the Financial Fraud Enforcement Task Force," McHenry wrote, adding, "[H]ow will the Residential Mortgage-Backed Securities Working Group achieve different results?"

Many of the questions that McHenry asks of the working group are shared by foreclosure fraud watchdogs, regardless of affiliation. Since President Barack Obama announced the new task force in January to investigate the mortgage and banking industries following the 2008 crash, some liberal activists have called the effort a "sham." New York State Attorney General Eric Schneiderman, one of the group's co-chairs, has defended its activities.

Miller told the Nation that he believes he himself was passed over for a top post on that anti-fraud squad over Republican concerns that the financial industry would not approve of his appointment.

More than 1,000 financiers were jailed for fraud in the aftermath of the savings and loan crisis, including executives with political connections like Keating. No one from any of the major Wall Street firms involved with the much larger 2008 financial collapse has been charged with a crime.

UPDATE: April 27, 11:20 p.m. --

Ryan Minto, press secretary for Rep. Patrick McHenry, sent HuffPost a written response: "After the Department of Justice refuted the fictitious assertions of any sort of industry influence, Mr. Miller should be ashamed of himself for using the plight of struggling homeowners for his partisan political attacks," Minto wrote.

"As Congressman McHenry’s letter notes, even former SIGTARP [official] Neil Barofsky stated that he was 'puzzled' by the creation of the working group and referred to it as 'political rebranding of existing efforts.' The Department of Justice rightly labeled the letter for what it is -- standard oversight."

Ryan Grim contributed reporting.

Also on HuffPost:

Comments

[MaxHeadroom]

10:52 AM on 04/27/2012

Come on Brad...Run for Governor of NC!

We need your leadership and experience to get this state back on track to the 21st century express, and not the 19th century tired old Southern Rail Lines.

[Paula Sacramony]

10:51 AM on 04/27/2012

I'm from NC and have never figured out how this numb skull gets elected!!

[realsurfin]

10:30 AM on 04/27/2012

ETHICS? GOP? in the same sentence? How about a coverup and white wash... The GOP, and MITT ROMNEY are beholden to the Wall St Bankers... there is not going to be anything greater than a hand slap...

VOTE OUT THE GOP AND THEIR RICH SUPERPAC HANDLER THIS NOVEMBER.

[BPCentrisAmerican]

10:20 AM on 04/27/2012

Maybe this is why he wants to deregulate banks.

Rep. McHenry has also been called out by the Center for Responsive Politics' Capital Eye, who found evidence that McHenry had been taking money from Countrywide Financial, a company now involved in the subprime mortgage crisis. McHenry took $5,500 from Countrywide's PAC, and served in an investigation into CEO payout fraud, of which one of the target companies was Countrywide Financial itself.

[Wagnerman]

10:18 AM on 04/27/2012

McHenry, unfortunately, represents my home district. He is an embarrassment: a small, belligerent, uninformed, Napoleonic knuckle-dragger. He is the unfortunate product of post-9/11 paranoia and faux patriotism. He has done nothing - not one thing - to alleviate the economic devastation the offshore jobs programs he supported have wreaked up on his district. Factories are empty, people are out of work. It's pretty dismal. And all he can muster is his normal "Jesus wrapped in the flag" dance and interference in a program that could help people in his district where foreclosures are exploding. Public service is supposed to be about serving something larger that oneself. Unfortunately, it seems that everything is larger than Mr. McHenry.

[PROGRESSISGOOD]

10:09 AM on 04/27/2012

Of course the Republican party is going to do everything possible to protect the profits of the Banksters over the American people just like they did in the 1980's. However, this is history and learning LESSONS FROM HISTORY IS ONLY FOR SNOBS.

[bamtex]

10:51 AM on 04/27/2012

I mean, California schools don't even TEACH history... how can they learn? ;)

[BPCentrisAmerican]

03:12 PM on 04/27/2012

To bad that's another right wing lie, who tells you this crap?

[appeallawy]

10:07 AM on 04/27/2012

The Banking industry (along with what President Eisenhower termed "the military/industrial complex) have long-since concluded their purpose of the American Government. One need not look far: Jon Corzine's not arrested; Timothy Geithner's still in office; Eric Holder has his thumbs further and further and the is loan money at zero percent with credit card interest at 17.99. Dinosaur industries roam the land propped up by tax dollars in a "capitalist" country and the RepTbags push for guns over butter. The Government doesn't protect the corrupt-it is the corrupt.

[BPCentrisAmerican]

10:03 AM on 04/27/2012

Commented Apr 27, 2012 at 09:38:54 in Politics
“They planned it on very day Obama took office, sounds like a conspiracy to commit treason against the American people to me. Seriously when dose dirty politics turn into conspiracy to commit treason, where's the line.”
Share it
Permalink
contrariandy on Apr 27, 2012 at 09:57:09
“in general, for conspiracy to commit treason against the American people, the line would go around the neck and up a tree”

I guess that made sense to you.

[John Roman]

09:55 AM on 04/27/2012

McHenry and Romney - two peas in a pod. Money is their god, nothing else.

[contrariandy]

09:49 AM on 04/27/2012

Little Fart McHenry may be the shortest man in Congress, but he sure doesn't come up short as a Corrupt, Cowardly, Cry-Baby Con-servative.

[Shankster]

10:04 AM on 04/27/2012

NC has more dems in prison than any other state.

[MaxHeadroom]

10:56 AM on 04/27/2012

Proof?

None probably: Just another nickel gamer comment.

The unfortunate thing is we also have a Yankee Bronx transplant Tea Bag/Republican witch in office here as well called Foxx. She is a as bright as a 5 watt bulb, but knows how to fool the local NC rubes that keep her in office with her totally fake "Southern Mystique" charm.

[BPCentrisAmerican]

10:07 AM on 04/27/2012

He reminds me of Grover without the beard, are all these chubby little pansies related, or were they grown in same lab from the same DNA.

[Freedomaphile]

09:45 AM on 04/27/2012

I guess comparing them to the "Keating Five" gets him press, but I doubt that much of anyone really remembers the "keating Five" or that scandel or the banking crisis of the 80s.

[PROGRESSISGOOD]

10:11 AM on 04/27/2012

None of the Republicans will claim to remember that fiasco where the Banksters ripped off their customers and the American Tax Payers in 2009 let alone in 1982.

[BPCentrisAmerican]

10:13 AM on 04/27/2012

So I guess Republicans never play the media, what's is the the West, Issa, Buchmann and Boehner crowed doing, they insult there colleagues and the President day in and out. Republicans don't even the respect the institution they are in control of, they attack Congress and government like there idle by-standers watching from a far, oh wait they are idle by-standers watching from a far, the Koch brother's golf course.

[ray newman]

09:36 AM on 04/27/2012

Lil Patrick the Amendment 1 hypocrite !! The guy is as gay as a three dollar bill and is for a state amendment to discriminate against gays, It's amazing, Asheville NC Mayor Ms Terry Bellamy has to unseat this twerp in November !!

[MaxHeadroom]

11:01 AM on 04/27/2012

I second that one! These "back to the future" extremists have to go, and we need to get NC back on track to the future as the South's most promising state for education, innovation, and jobs coupled with the sentiment of fairness for all.

You can't turn back the clock to the 1800's South here in NC anymore.

[jtorri]

09:31 AM on 04/27/2012

Come on now. This fellow's a darn snappy dresser and looks sharp. I'm guessing he is representing the haberdashery industry and I approve of that. Who doesn't enjoy a pleasant cotillion? What's the problem?

[Rex Devious]

09:26 AM on 04/27/2012

Why would that bother them?

John McCain was *in* the Keating Five, and they nominated him for President last time.

[NHGranite]

09:19 AM on 04/27/2012

Arrest them. Put them in jail. Let them defend themselves from jail. That's what we do to criminals, but not for the people that toppled the world economies. And the top 1% made money off our misery and are richer than ever.