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OneUnited Highlighted in CNN Article on US Bailouts of Unsafe Banks
POSTED ON BY Ken Tumin
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:
The CNN article described some of the FDIC orders against OneUnited:
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.
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.
Nail those b*stards to the wall and leave 'em to dry up and shrivel to nothing.
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.
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.
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.