Several Washington D.C. lawmakers are caught up in an ethics investigation over VIP cash loans given to their staffs. Bank of The United States bought all of these “Sweetheart” or “VIP” loans that Countrywide made. Senators might have legal issues because of the VIP cash advances being given out.
Countrywide creates VIP loans
Bank of America documents show that Countrywide decided they would give “sweetheart” loans out to people. These low interest rate, no credit check loan products appear to have been targeted to senators’ staffs. Issa, who’s a Republican senator, saying a “high concentration” of loans were given to DC staffers and explained it was unethical. Many feel these loans were written because Countrywide wanted some influence within the white house with some senators. Of course, we haven’t caught this till now when the loans were made years ago in 2002 and 2003.
Ethics complaints over loans
Senator Issa filed the ethics complaints against a number of senators. Last year, Senator Dodd and Senator Conrad were both “scolded” by the Ethics Committee. They were told they had to “be more careful to keep away from the appearance of favoritism from Countrywide.” Both senators were cleared after this scolding. Senator Robert Bennett has been tattled on in the ethics complaint filed most recently. Twelve of the 30 named “VIP loans” went to members of his staff.
Names of those who took loans
The investigation on Countrywide VIP cheap loans is being done by an Oversight and Government Reform committee from the Senate. Bank of The US has to give the government all documents involving VIP loans that they have incorporated anything that has “US Senate” written down as their employer. 37,000 documents were provided by Bank of America already that talk about Countrywide and anything that was received from them. Many will have problems with the November election if names are really given out and reported.
Senator Burnett speaks on the issue
In detail, Republican Senator Burnett, retiring, spoke about the ethics complaint filed against him. In short, Senator Burnett said that he doesn’t make it a point to discover out where his staffers do their banking. He didn’t ask his employees about any mortgages or quick unsecured loans they may have gotten.
