Frank Goes to Bat for Lender, and It Gets an Infusion

Troubled OneUnited Bank in Boston didn’t look much like a candidate for aid from the Treasury Department’s bank bailout fund last fall.

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.

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(Damian Paletta and David Enrich, “Political Interference Seen in Bank Bailout Decisions: Barney Frank Goes to Bat for Lender, and It Gets an Infusion,” The Wall Street Journal, 1/27/09)