Maxine Waters Ethics Trial Canceled

Rep. Maxine Waters, D-Calif., during her news conference on Capitol Hill in Washington, Friday, Aug. 13, 2010, to discuss the House ethics committee investigation.

/ AP Photo/Pablo Martinez Monsivais

Updated 5:29 p.m. Eastern Time

One day after it recommended censure for veteran Democrat Charles Rangel of New York, the bipartisan House ethics committee has canceled the Nov. 29th trial for California Democratic Rep. Maxine Waters.

The committee said new material has come to light that has prompted a decision to send the Waters case back to the initial subcommittee that first looked into it, according to CBS Radio News Capitol Hill Correspondent Bob Fuss. That four-member subcommittee will now reexamine the evidence against Waters.

Waters has been accused of improperly attempting to steer federal bailout money to a bank in which her husband had a financial interest. The lawmaker, who has a high-ranking spot on the House Financial Services Committee, has denied all wrongdoing.

In 2008, Waters organized a meeting between Treasury officials and executives from OneUnited Bank, where her husband was once a board member and had significant investments. The bank received $12 million from the federal government's Troubled Asset Relief Program.

Waters has defended her request for the meeting as part of her efforts to advocate on behalf of minority-owned businesses.

Following the news, Waters put out a statement suggesting that the "weak case" against her is unraveling. 

"I am disappointed that the Committee is once again postponing my hearing and showing a complete disregard for due process and fairness," she said. "For over a year, I have cooperated with the investigation and I have consistently asked for a public hearing on this matter. I remain eager to present my case and demonstrate to my constituents and all Americans that I have not violated any House rules."

"The Committee's decision to cancel the hearing and put it off indefinitely demonstrates that the Committee does not have a strong case and would not be able to prove any violation has occurred," she added.

The ethics committee charged Waters with three violations in August, including that she failed to "behave at all times in a manner that shall reflect creditably on the House."

As CBS News Investigative Correspondent Sharyl Attkisson noted last month, other members of Congress have taken actions comparable to those Waters and Rangel were charged for but did not face charges.

"The Committee is suggesting it needs more time to review newly discovered evidence that it claims may be material to its case," Waters said in her statement today. "In fact, the Committee has had this new document since October 29th, and it does not provide any new significant information. In fact, the document shows that my office was working to ensure that Emergency Economic Stabilization Act assisted small and minority institutions. The document does not reflect any action on behalf of any specific company. Although the Committee continues to insist that the small bank language was drafted to benefit only one institution, the facts do not support that assertion; in fact, the documentary record directly contradicts it."

"The credibility of the House is reflected not only by Members accused of improper action, but also is reflected by the Members who sit in judgment," she added. "The public expects those who judge to hold themselves to their rules. Today, the Committee has brought discredit upon itself and this institution by denying me, and more importantly my constituents, the right to set the record straight."

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Brian Montopoli is senior political reporter for CBSNews.com. You can read more of his posts here. Follow Hotsheet on Facebook and Twitter.

[shylohjacobs]

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[vbnon]

Why wasn't the same attention paid to this?

1.CPB got TARP money after Inouye call | Pacific Business News
Jun 30, 2009 ... CPB got TARP money after Inouye call ... While at least 33 senators own shares in banks that got federal aid, a review of financial ...
www.bizjournals.com/pacific/stories/2009/06/.../daily27.html - Cached - Similar


1. Hawaiian Bank Scandal Ripple Effect to Mainland
Sep 18, 2000 ... Senator Inouye's most valuable asset is $500000 worth of CPB stock. CPB is the Hawaii affiliate of Sumitomo Bank of Japan. ...
www.greaterthings.com/News/Clinton.../Riadi.../ripple.htm - Cached - Similar

..

[edmundsingleton]

There is such a thing as 'appearance of impropriety'...

[dibbs977]

Seems like the Republican Dirty Trick Machine has paid millions (they have it) to go after and lynch the blacks in Washington. If Democrats had more money to do the research or used more of our tax money, I'm sure they could find some dirt on some white Republicans---but then Democrats do not have a wealthy consortium of businessmen secretly backing their every move.

[SoCal_Gridlock]

What? You really have no clue, do you? It's all about ethics violations. It IS NOT about race.

[nuttyworld]

She angrily yelled that the Housing Committee did not need any oversight - when John McCain tried to get a bill passed to give oversight to the committee. We all know what later happened to the housing market

[m0u5y]

Come on guys. Grow up. This isn't a political issue, it's human nature. Sadly people are selfish regardless of their political party and in this case they were in a position of power which allowed them to influence funds that should have gone somewhere else. Should she be punished? Of course. You can't blame it on her political party because otherwise all Republicans should be judged as racist. Do I believe all Republicans are racist? No. Do I think all Democrats are angels? Of course not. Very few people, sadly, would use their positions to help those in need instead of being selfish. How many of us would give away everything they had to help feed American children and get them the health care they need? Not many. I don't even know if I would have the courage to go that far, though I do what I can. What's the point of labeling ourselves Democrats and Republicans when in the end we're all the same? I know several liberal Republicans and conservative Democrats. Friendly competition is great as it helps bring society closer to the right answers for prosperity, but all out hatred for your brothers and sisters is only destructive and will hurt yourself as well as others. Punish those who acted selfishly and stop bringing politics into it.

[M_Mcf_M]

'...people are selfish...' duh. That doesn't make it right, and someone who is in a position of power, legislative power, is abusing that power when it comes to something like this. Waters and Pelosi go way back. She's getting protected. Somebody do the homework. Ditto bradkt's comments.

[bradkt1]

I have always had my doubts about the ethics case against Maxine Waters. Just about anyone in California knows that she has not had the reputation of being fast and loose in the area of ethics and many people that I know were very surprised when the news of this first broke. The allegations against her were never of the same type that were against Charles Rangel. It always sounded to me like her grandson ran off half-cocked and steered that meeting with regulators to a subject that Mrs. Waters had never been briefed on in the first place. Yes, the appointment of her grandson as her Chief of Staff smacked of nepotism (although he was qualified for the job), but that was not what she was charged with...because most of Congress is guilty of that.

[payasyougo]

"In 2008, Waters organized a meeting between Treasury officials and executives from OneUnited Bank, where her husband was once a board member and had significant investments. The bank received $12 million from the federal government's Troubled Asset Relief Program."
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And the list goes on.....

[joeshuren]

Rep. Waters is a member of the House Committee on the Judiciary, Subcommittee on Crime, Terrorism, and Homeland Security. Sept. 28, 1998, she wrote to Fidel Castro, referring to the position of the Congressional Black Caucus with respect to a resolution she voted for, House Concurrent Resolution 254 which called on the Government of Cuba to extradite to the United States domestic terrorist Joanne Chesimard. She urged Mr Castro to respect the right of Ms Chesimard to remain in Cuba with political asylum. Ms Waters oversees the FBI, which offers a reward of $1 million for the return of Ms Chesimard to prosecution for shooting on May 2, 1973 New Jersey State Troopers James Harper and Werner Foerster and killing Foerster and then escaping from prison. Rep. Waters should be removed from the judiciary committee and from the House in disgrace.

[gthog]

sounds like they are spacing it out because they are too chicken to go after two black crooks so close together