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July 1, 2009 7:35 AM

Hawaii Dem Linked to Questionable Bank Bailout

(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.

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Tags:
daniel k. inouye ,
hawaii ,
democrat ,
central pacific financial ,
bailout ,
treasury ,
fdic
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