January 8, 2006 /

Another Reason Delay Stepped Down

Another scandal is emerging in Washington which was spearheaded by Tom Delay. This one is another blatant abuse of power by the former Majority Leader: WASHINGTON — In a case that echoes the Jack Abramoff influence-peddling scandal, two Northern California Republican congressmen used their official positions to try to stop a federal investigation of a […]

Another scandal is emerging in Washington which was spearheaded by Tom Delay.
This one is another blatant abuse of power by the former Majority Leader:

WASHINGTON — In a case that echoes the Jack Abramoff influence-peddling
scandal, two Northern California Republican congressmen used their official
positions to try to stop a federal investigation of a wealthy Texas
businessman who provided them with political contributions.

Reps. John T. Doolittle and Richard W. Pombo joined forces with former
House Majority Leader Tom DeLay of Texas to oppose an investigation by
federal banking regulators into the affairs of Houston millionaire Charles
Hurwitz, documents recently obtained by The Times show. The Federal Deposit
Insurance Corp. was seeking $300 million from Hurwitz for his role in the
collapse of a Texas savings and loan that cost taxpayers $1.6 billion.

The investigation was ultimately dropped.

The effort to help Hurwitz began in 1999 when DeLay wrote a letter to the
chairman of the FDIC denouncing the investigation of Hurwitz as a “form of
harassment and deceit on the part of government employees.” When the FDIC
persisted, Doolittle and Pombo — both considered proteges of DeLay — used
their power as members of the House Resources Committee to subpoena the
agency’s confidential records on the case, including details of the evidence
FDIC investigators had compiled on Hurwitz.

Then, in 2001, the two congressmen inserted many of the sensitive
documents into the Congressional Record, making them public and accessible
to Hurwitz’s lawyers, a move that FDIC officials said damaged the
government’s ability to pursue the banker.

The FDIC’s chief spokesman characterized what Doolittle and Pombo did as
“a seamy abuse of the legislative process.” But soon afterward, in 2002, the
FDIC dropped its case against Hurwitz, who had owned a controlling interest
in the United Savings Assn. of Texas. United Savings’ failure was one of the
worst of the S&L debacles in the 1980s.

Article continues

here
.

This is absolutely ridiculous and shows the extents to which some dirty
politicians will go to save their rich buddies.

 

More IntoxiNation

Comments