My Advocacy On Behalf of Minority and Community Banks

I have been an outspoken advocate for minority communities and businesses in California and nationally for decades. Recent press reports have raised questions about my advocacy on behalf of minority banks. Ultimately, however, these articles only revealed one thing: I am indeed an advocate for minority banks.

Despite my public and consistent advocacy, news reports suggest that somehow I have acted improperly.

Let me set the record straight:

The National Bankers Association (NBA), the leading trade organization which represents the interests of America's minority-owned banks, requested a meeting with Treasury Department officials last year as the financial crisis was unfolding, jeopardizing the health of banks large and small. It is important to clarify that this meeting was requested and scheduled on behalf of the NBA, not on behalf of OneUnited Bank as press reports suggest. The letter from NBA to Treasury indicates the intent of the meeting and the dire concern expressed by the association on behalf of its members. The NBA contacted Treasury directly just as other trade associations did, to request a meeting so that its members could discuss their concerns regarding the situations facing minority banks. I followed up on the association's request by asking Treasury Secretary Paulson to schedule such a meeting, as did other members of Congress. Secretary Paulson recognized that the NBA's concerns about the future of minority banks were valid and arranged for a meeting in early September.

I did not attend the meeting, and thus did not participate in the conversation. Press reports of the meeting focus on concerns expressed on behalf of a single bank. However, NBA's follow-up letter to Treasury, reiterates the organization's concerns about the fiscal health of its members generally (2).

The press reports also perpetuate a misconception about the way in which funds from the Troubled Asset Relief Program (TARP) are distributed to banks requesting assistance. The Executive Branch administers TARP funds, not Congress. In particular, the Treasury Department and the Federal Deposit Insurance Corporation (FDIC) decide which financial institutions should receive funds. As reported, Treasury officials admit that the decision to distribute TARP funds to OneUnited Bank were based on the merits of the banks request, not based on anything said at the September meeting and not based on political influence. (Although both my supporters and detractors often refer to me as influential, the truth is that I had no influence on what Bush Administration officials in the Treasury Department or other departments did.)

My husband Ambassador Sidney Williams, who has represented the United States as an Ambassador and has been a respected and active member of the Los Angeles community for many years, was asked to sit on the board of OneUnited Bank. This bank services our community and was the successor to the bank of which we had been customers at for many years. He accepted the position and did not accept any director's compensation for his work on behalf of the bank and the community it serves.

Despite suggestions to the contrary, I have fully disclosed all of my financial interests in official filings. These filings included the stock my husband purchased upon joining OneUnited's board (it is required under Massachusetts law, where OneUnited is headquartered, that individuals hold stock in a bank before joining its board). Furthermore, Ambassador Williams is proud to be invested in a minority owned community bank that was given an "outstanding" lending rating from its regulator for its lending activity in underserved communities in Los Angeles, where traditional banks have refused to lend. I even took additional steps beyond what is required of Members of Congress when I voluntarily and publicly disclosed my husband's relationship with OneUnited during an October 30, 2007 Financial Services Committee hearing entitled "Preserving and Expanding Minority Banks." Both the Federal Deposit Insurance Corporation and the Office of Thrift Supervision were present at this hearing.

The federal government has a legal obligation to support minority banks, as explicitly stated in the Financial Institutions Reform Recovery and Enforcement Act (FIRREA). In particular, Section 308 of FIRREA insists that the federal government take an active role in the preservation of the number and nature of minority banks. I have previously worked to ensure that the government is held accountable in this regard, and I will continue efforts to promote the interests of minority banks. As recently as the 110th Congress, I exhibited my commitment through my participation in official Oversight hearings on minority banks, as well as the initiation of a Government Accountability Office (GAO) study on the effectiveness of mandated government assistance to minority banks.

In addition to this focus on banks, I authored three separate provisions, two of which became law, to insure small, women and minority owned businesses could fully participate in federal contracting opportunities. Unfortunately, most Federal agencies have ignored minority participation laws and failed to make reasonable attempts to assist small, minority and women-owned banks and businesses as required by law.

I maintain that my advocacy on behalf of small, women, minority and community banks is appropriate. I will continue to bank and do business with minority depository institutions and work on behalf of my constituents, and the institutions that serve them.

Comments

[SpookyOps73]

It's about more than the ablity to dance around the issues. It's about credibilty, accountability, and transparency. A new day has dawned that requires any elected official that elevates their self importance to an altitude unatainable by most on Main Street to also elevate their integrity and morality to the same height. Those officials unable to maintain or reach this threshold of accountability must now step aside. When did you sell your stock in Oneunitedbank Ms. Congresswoman? When did your husband sell ALL of his stock in the same bank? More importantly, when the stocks were purchased did you and your husband ask for or in any way receive "special treatment" or considerations with respect to the price of the stock.
This is not about playing the race card or me, and it must not be for you. You have played that card wth impunity and expertise throughout your career. Just know, that mantra no longer has any music for Main Street to dance to. Answer the questions and provide the supporting evidence. Anything less is will be regarded as duplicity potentially bordering on fraud.

[MrsFonebone]

Why are you pleading your case here, instead of rebutting the "press" who you allege misrepresented you?

As a law abiding citizen., I'm tired of politician after politician having to do some fancy footwork to defend questionable decisions when they come to light.

Are there no senators and reps left who don't confuse their own self interests with those of the electorate?

[tmaxPA]

As far as I can tell, there were no questionable decisions involved in this matter, just very questionable accusations.

[Intelligentia]

My dear esteemed Congress woman, I knew you would not lay back and let the "shamed and shameless" fabricate stories to smear your good name. They picked on the wrong one! You did not come and start apologizing like some Black leaders do for no reason, other than to massage the ego of racist Whites who still beleive Blacks must explain everything Blacks do to the racists. Good Americans of all races know your record. The story was all about distraction from those who actually raped our economy. They are so ashamed of the names and faces being paraded on television, internet and courthouses. So, they had to try to put a Black face to the fraud they have committed. It did not work. We are awake and I am extremely happy Congresswoman Waters hit them back, hard! You can never defeat the truth with lies and fabrications! Never!

[IrisBittencourt]

As an African-American representative, can you fight for "blacks" sometimes, instead of "minorities'? Are blacks so ashamed of themselves and their past that they cannot support black causes? The few black elected officials have to represent blacks and everybody else? Why are blacks, who are on the lowest rung of the latter, trying to help other people that are ahead of them? It seems counterintuitive and a waste of time. It is time for black leaders to stop feeling ashamed of what they are: black leaders. We need all of you to fight for BLACK PEOPLE (and not Latinos, Asians, white women, hunchbacks, elves, fairies and ghosts). No one else fights for blacks, so let's banish the term MINORITY from our vocabulary: it is a waste of time and resources. With blacks' help and pimping off the black struggle, other so-called "minorities" have left blacks in the dust (look, for example, at the EEO-1 data over the last 30 years in law firms -- Asians, Hispanics and white women have significantly outpaced blacks). This reflects a failure of black leadership. How can Shirley Chisholm honestly state (and let herself be used by white women) that she has suffered more discrimination as a woman than as a black? Black people need to hold their leaders accountable. Stop trying to represent people who do not even like black people and get busy righting the black ship, which has run aground and in danger of capsizing.

[Intelligentia]

You could not have said it better with respect to fighting for Blacks, FIRST! If people knew how sex became a protected class, you will laugh and be ashamed/angry of what White racists have to to Black people in this country. It was a joke by an Alabama senator who, during the debate for the Civil Rights Act of 1964, said something like, heck, since we are protecting Blacks and everyone, we might as well put "sex" in the civil rights bill." Boom, sex was added, and White women have been milking it for all it is worth. White woman took the lion share of Affirmative action, yet when affirmative action is being condemned, they put the Black face on it, and you don't see any White woman coming to fight for Blacks on that front. The White men will hire their daughters, wives, sisters, neices, and claim diversity, while Blacks are yet to be considered. The mantra is: any other socalled minority will do, but Blacks. Blacks should fight for Blacks first and foremost, because, when it comes down to it, the other so-called minorities will side with Whites, not necessarily because they hate Blacks, but self-preservation, as Whites hold and control most of the economic power that can affect those other so-called minorities.

[Intelligentia]

Correction, it was a Senator from Virginia, not Alabama (same thing in principle and ideology though)

[Intelligentia]

For those interested on how we ended up with 'sex" in Title VII, see the links below, to see that Blacks have always been on their own. When it comes down to it, White women will protect their own interest. Although there are many stories about how it happened, the ones below are sufficient to shed the light on the matter:

http://www.jofreeman.com/lawandpolicy/titlevii.htm

http://www.h-net.org/~women/threads/disc-titlevii.html

[Gabblog]

Right On!!! "If the glove doesn't fit, you gotta acquit". Barney had her back...
The WSJ reported the following "...The Treasury had said it would give money only to healthy banks, to jump-start lending. But OneUnited had seen most of its capital evaporate. Moreover, it was under attack from its regulators for allegations of poor lending practices and executive-pay abuses, including owning a Porsche for its executives' use. Nonetheless, in December OneUnited got a $12 million injection from the Treasury's Troubled Asset Relief Program, or TARP. One apparent factor: the intercession of Rep. Barney Frank, the powerful head of the House Financial Services Committee.­" Mr. Frank, by his own account, wrote into the TARP bill a provision specifically aimed at helping this particular home-state bank. And later, he acknowledges, he spoke to regulators urging that OneUnited be considered for a cash injection.­" Since Frank admits interceding in the unhealthy home bank's need this story may not need further review by the media however, the conflicts of interest should be explored, i.e., does he own any stock in the bank, does his significant other work there, does he know anyone that works there or has family that is employed there...Wh­at about loans to Frank or anyone he knows?

[Sioen]

Thank you, Maxine -- and fight like hell!

[jade7243]

Go Maxine! Give 'em hell!

[ritz]

Maxine, you've always been on the right side of the issue. I know that good people can fall, we're all human, but your explanation sounds valid, and I trust your word. I actually didn't watch or listen to any news today because I didn't want to hear the talking heads going on and on.

There are people who will try to take you down, but I sense you are a fighter. Fight on.

[Dukedraven]

Ms. Waters, I'm a liberal Democrat and to me, this doesn't smell right. If I were a congressman, I would have abstained from the bailout vote--as important as it was--if I had a significant financial stake in one of the banks. It boggles my mind that politicians know these stories will get out, but they continue to make the same mistakes over and over again. Why, madam, did you vote?

[NCYvonne]

Possibly because she thought it was the right vote to cast??? Consider that novel idea.

[SamKnause]

I read the article Maxine. I didn't believe a word of it. Someone always has to be putting someone else down and making up lies. You go Girl.

[Intelligentia]

They think that lies can make them kings and queens. In the end, it catches up with them, like they have been exposed in this economic crisis. They can't fake it anymore. All our so-called experts are nothing but frauds and con-artists. So, they want to drag someone like Congresswoman Waters to their level. It won't work.

[Pablo175]

Maxine for Treasury Secretary!!!!!!!!!!

[heckofamess]

advocate or not, lets take some personal responsibility and just recuse yourself from the entire process. you know ,"transparency and change". Even more serious, im baffled why someone on the House Financial Services Committee would'nt do some simple due diligence on OneUnited and realize that its not help (via a $50m infusion) from the government that is needed but a entire new mgmt and Board. The company is a complete mess......­......if the hole is deep, dont dig deeper.

[LeftWingX10]

Maxine, just curious who wrote this piece for you? . . and don't you have a real job, we pay you to do?

[jorge4u]

What are you trying to say or imply? Why are you curious?

[Barbi520]

Maxine, you are articulate and a wonderful advocate for your community and for middle class and poor Americans all over the country. As a white middle class person, I have always admired you and the hard work you do. Keep up the fight.

Once again, you have laid bare the lies of the ultra right wing whackos who are just out to destroy anyone who is not like them.

I really and truly appreciate all the hard work you have done. More Democrats should have your tenacity and fight. It seems like a lot of the women democrats are bigger fighters than the men. Nancy Pelosi, Hillary Clinton, Boxer and Feinstein. Keep up the good fight.

[plaidsportcoat]

we love you Maxine Waters! Keep on keepin on