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OneUnited Highlighted in CNN Article on US Bailouts of Unsafe Banks

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OneUnited Bank
This CNN article reviews the issue of the Treasury giving out TARP funds to unhealthy banks. Many consider it bad policy to be helping these unhealthy banks while ignoring the safe-and-sound banks. OneUnited Bank was specifically mentioned:
Consider the case of OneUnited, a small Boston bank that was recently the subject of a federal enforcement action that questioned the bank's safety and soundness -- and was also the recipient of a $12 million TARP bailout.

The CNN article described some of the FDIC orders against OneUnited:
The FDIC ordered OneUnited to "sell all bank-owned automobiles," and to require that executives reimburse the company for any vehicles that had been purchased. The Boston Business Journal reported in November that the bank owns a 2008 Porsche sport-utility vehicle that is registered at the address of OneUnited CEO Kevin Cohee.
...
The FDIC also ordered the bank to stop paying for a beachfront house in Santa Monica that, according to the Boston Business Journal, was purchased for more than $6 million in early 2007 by a group that included Cohee and his wife Teri Williams, the bank's president.

In November I reported on the Cease and Desist Order that the FDIC issued against OneUnited. OneUnited has long been offering a high yield online savings account (see post), but in the two years since I started reporting on OneUnited, it has not built a reputation of a well-run internet bank. Many readers have reported problems with the bank's online application, the online banking and with their customer service. OneUnited's policy of crediting interest quarterly is another issue.
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Comments
5 comments.
Comment #1 by gaelicwench (anonymous) posted on
gaelicwench
Unfrickin'-believable! You know, if bit by bit, little by little, the news media manages to garner enough sh*t on these frauds, perhaps then, something will be done about the action that is needed to be taken against them. One can hope.

Nail those b*stards to the wall and leave 'em to dry up and shrivel to nothing.

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Comment #2 by Anonymous posted on
Anonymous
Just one more outrage for which we are indebted to Bush and Paulson. Thank God both of these goons soon will be "outta there". It is a good thing.

The bad news is that a spineless Obama and his new people might turn out to be even worse than Bush, if such a thing be possible. Sure hope I'm wrong about this. We need good leadership and we need it now.

1
Comment #3 by gaelicwench (anonymous) posted on
gaelicwench
Aren't you putting the cart before the horse? I find nothing spineless about Obama. The guy has guts to take on the crap Bush is leaving in his wake. The fact that he's already meeting with his people to fix this economic debacle before his inauguration speaks volumes.

The unfortunate thing is that he's going to hang onto Paulson. Big, big mistake. He needs to go! He's a former CEO from Lehman's is it? or perhaps one of the other big failed financial institutions.
Ironic.

I'm not gonna get into politics here. My concern is that those who received the TARP millions tell Congress what it is they're doing with the money. Hopefully, when Obama moves into the WH, he'll have Congress put the big banks' feet to the fire about where those millions went.

1
Comment #4 by Anonymous posted on
Anonymous
gaelicwench,

right on, amen! Paulson used to work for Goldman Sachs. You are right that its not about politics, it is about getting out of this mess.

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Comment #5 by Anonymous posted on
Anonymous
I always wondered about these banks that catered to low income residents and minorities. This sounds like a reverse case of Robin Hood where instead of taking from the rich to give to the poor, these bank officers are taking from the poor and giving it to themselves. That makes them no different than all of those investment banking CEOs.

1