July 1, 2009 7:35 AM

Hawaii Dem Linked to Questionable Bank Bailout

By
Daniel Carty
Topics
Economy
(AP Photo/Yuri Gripas)
A struggling Hawaii bank received a $135 million federal bailout last fall two weeks after staff from the office of Sen. Daniel K. Inouye, a big investor in the bank, called federal regulators about the aid application, according to a report in ProPublica Tuesday.

Bank regulators had designated Central Pacific Financial as a marginal candidate to receive federal assistance, according to documents cited in the report. But soon after the phone call from Inouye's office, the Treasury directed millions of dollars to bolster the bank's capital reserves.

Inouye, D-Hawaii, owns shares in the bank that totaled between $350,000 and $700,000 at the end of 2007, according to the report. That amounts to roughly two-thirds of the senator's personal wealth.

Since 2007, the bank's stock has lost 79 percent of its value.

While it's not unique for a senator to have a stake in a local bank, it was unusual for Inouye's office to contact regulators about the bank's application, the report states.

Inouye acknowledged in a statement that an aide did contact the Federal Deposit Insurance Corporation about Central Pacific's application, but denied trying to influence any decision. He didn't mention whether the aide contacted regulators at his request.

Such involvement wouldn't violate Senate rules, the report cites experts as saying.

The FDIC and Treasury said the decision to bail out the bank was not related to the communication with Inouye's office, according to the report.

The story was worked on jointly by ProPublica and the Washington Post. It appeared in the Post Wednesday.

Add a Comment
by endurorob July 1, 2009 11:56 AM EDT
So the bank gets the bailout after a call from the senetors staff and athe FDIC said the call had nothing to do with it. B.S.
Reply to this comment
by endurorob July 1, 2009 11:55 AM EDT
woeisme1 July 1, 2009 7:44 AM PDT
Just shut up and quit whinning like a spoiled little brat! I personally love it that the republicans taxes are raised. GOOD!


That is an excellent liberal rebuttal. Don't discuss the issue at hand just atack those you disagree with.
Reply to this comment
by platteman July 1, 2009 10:37 AM EDT
Gollie Sargent, who would have guessed that!!! A dem getting favors for something they own, never, that would be conflict of interest. I remember Queen Nancy saying we will have the most ethical congress ever, Really, looks like we got another person streaching the truth.
Read My Lips, No New Taxes, no one under $250,000 will pay a dime more in taxes, REally, doesn't look that way now.
Reply to this comment
by woeisme1 July 1, 2009 10:44 AM EDT
Just shut up and quit whinning like a spoiled little brat! I personally love it that the republicans taxes are raised. GOOD!
by Joe_NY_15 July 1, 2009 11:28 AM EDT
Read my lips, no new taxes for anyone making under 250,000.....Remember that line ?? these libs are getting played like a fiddle and they don't have a clue....they actually bought that line, that a liberal democrat was going to cut taxes....AH HAHA AHAHAHAHAHHAHAAHA LMAO !!! boy, were they fooled
by creeper00 July 1, 2009 9:57 AM EDT
"The FDIC and Treasury said the decision to bail out the bank was not related to the communication with Inouye's office, according to the report."

Yeah. Right. And tomorrow the sun will rise in the west.
Reply to this comment
by parrots7 July 1, 2009 9:21 AM EDT
Such involvement wouldn't violate Senate rules, the report cites experts as saying.

The FDIC and Treasury said the decision to bail out the bank was not related to the communication with Inouye's office, according to the report.



Why is this anything at all ???? CBS ???
Reply to this comment
by jackp32 July 1, 2009 9:21 AM EDT
That Inouye is a long time crook who has escaped censure and ethics violations for many years including sexual harrassment allegations that were covered up several years ago. He must think that he can get away with anything he does. Time for the voters of Hawaii to get off the beach and go vote this guy out of office.
Reply to this comment
by woeisme1 July 1, 2009 10:40 AM EDT
He did nothing wrong. Why should you speak against him? Because your a republican? I figured. You guys never have anything to say good about anyone who is not like you. You're all racists. That's what I know.
by jschmidt27 July 1, 2009 9:00 AM EDT
Frank and Waters did exactly the same thing- but no questions are raised there?
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