Numerous of those in Washington DC are concerned about the ethics of VIP cash loans their staff has. These “VIP” or “sweetheart” loans were all made by Countrywide, which was lately purchased by Bank of The US. Senators might have legal troubles because of the VIP cash advances being given out.
Countrywide – a company to give out VIP loans
In documents lately released by Bank of America, it was revealed that Countrywide wrote a huge number of “sweetheart” loans. No credit check was done when giving out the low interest rate loans, and they were targeted towards Senate staff. Issa, who is a Republican senator, saying a “high concentration” of loans were given to DC staffers and explained it was unethical. Many believe that Countrywide was trying to get what they want out of Senators by writing these loans. The loans were made mostly in 2002 and 2003.
Ethics complaints over loans
Senator Issa decided to make it a duty to file complaints about ethics on these senators. . These two senators were told to “be more careful to stay away from the appearance of favoritism from Countrywide.” The scolding was all they got before being cleared. The most recent ethics complaint being made blames Senator Robert Bennett. Members of his staff received 12 “VIP loans” out of the 30 handed out.
Names of those who took loans
The Senate Committee on Oversight and Government Reform is doing the latest investigation on Countrywide VIP cheap loans. Bank of The US has to give the government all documents involving VIP loans that they have included anything that has “US Senate” written down as their employer. Thus far, Bank of The US has provided 37,000 documents related to Countrywide and their lending practices. If the names come out, then the upcoming election might be detrimental for some.
Issue discussed by Senator Burnett
The ethics complaint filed against Republican Senator Burnett was responded to by him as it doesn’t matter since he isn’t really running for re-election. In short, Senator Burnett said that he doesn’t make it a point to find out where his staffers do their banking. He didn’t ask his employees about any mortgages or quick unsecured loans they may have gotten.
