Sen. Inouye makes phone call, bank gets bailout money

July 2, 5:03 PMWatchdog Politics ExaminerMartha R Gore

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When the bank bailout money was being distributed, Sen. K. Inouye discovered that the bank he helped establish and in which he had invested most of his personal wealth was not on the list, it took a phone call or two to fill its coffers.

Prior to the calls, the Federal Insurance Deposit Insurance Corp had already decided that the bank, Central Pacific Financial, was an unlikely candidate for the program which was designed to help healthy banks.  Central Pacific Financial did not meet that criteria as its losses was depleting its capital reserves. Since the end of 2007, the bank has lost 70 percent of its value. In addition, the bank was already in trouble with the FDIC.  Regulators had raised concerns about the bank earlier in the year.

However two weeks after the inquiry from Inouye's office, Central Pacific announced that it would receive $135 million dollars.  Is it a coincidence that Inouye's held shares of the bank to the tune of somewhere between $300,000 and $750,000 in 2007?

What happened between the time it looked like the Central Pacific Financial would not qualify for bailout money and Inouye made phone calls makes one wonder just what role members of Congress have played in influencing the Treasury Department's decision in giving out the money.

This incident with Inouye and the Central Pacific Financial sounds  like that of Rep. Maxine Waters (D-Calif.) when special language was inserted in the bailout bill to benefit the bank in which her husband held shares.

To read the entire articles, go to:

http://www.washingtonpost.com/wp-dyn/content/article/2009/06/30/AR2009063004229_pf.html

http://www.google.com/hostednews/ap/article/ALeqM5j4ZA9TL-Yjw1X6c3KSmdjIJv-QwAD995USTO0

More articles about bank bailouts

http://www.examiner.com/examiner/x-2547-Watchdog-Politics-Examiner~y2009m3d13-Corruption-in-US-Congress-Rep-Maxine-Waters

http://www.examiner.com/examiner/x-2547-Watchdog-Politics-Examiner~y2009m2d23-Bank-bailout-digs-deeper-into-taxpayers-pockets

http://www.examiner.com/examiner/x-2547-Watchdog-Politics-Examiner~y2009m3d17-Congress-and-bank-bailout-blasted-by-Wells-Fargo-chairman

http://www.examiner.com/examiner/x-2547-Watchdog-Politics-Examiner~y2009m2d5-Bank-Bailout-Haste-make-waste

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