John Ransom

If you thought nation’s financial services were battered under Barney Frank and Chris Dodd, wait until you see who’s batting cleanup for the Democrats in the House. 

Maxine Waters, the ranking Democrat on the Capital Markets and Government

Sponsored Enterprises Subcommittee of the House Financial Services Committee and who serves as the deputy whip for the Democrats in the House- and who will take over for Frank now that he is retiring - is embroiled in another scandal involving money and nepotism.

Waters apparently has paid family members close to $1 million from public or campaign funds since 2007, according to a recent report by Citizens for Responsibility and Ethics in Washington (CREW).

Waters, 74, is next in line of seniority on the House committee after Rep. Barney Frank retires this year. That means that if the Democrats capture back the House, Waters would exercise oversight authority over Fannie Mae, Freddie Mac, FHA, the Securities and Exchange Commission, the New York Stock Exchange and the NASDAQ, as well as all capital formation for new businesses… you know, just to name a few areas.        

Figures gathered by CREW show that Waters paid her daughter’s firm $351,512 in the election cycles 2008 and 2010 for campaign mailings and for fundraising.

Waters also hired her grandson, Mikael Moore, as chief of staff. “Between 2007 and 2010,” writes Crew “Mr. Moore made $491,975. His most recent annual salary was $132,410.”

Hurray for the 1%ers.  

Additionally, Waters has reimbursed herself and her husband for over $15,000 in various expenses, including hotel, office supplies and gasoline. Her campaign has also loaned $25,000 to a non-profit on which she is a board member and of which her daughter is president. CREW says that no payments have been made on the loan.

Waters is already being investigated for using undue influence to secure a $12 million TARP bailout for a bank in which her husband was a director and a shareholder.

John Ransom

John Ransom’s writings on politics and finance have appeared in the Los Angeles Business Journal, the Colorado Statesman, Pajamas Media and Registered Rep Magazine amongst others. Until 9/11, Ransom worked primarily in finance as an investment executive for NYSE member firm Raymond James and Associates, JW Charles and as a new business development executive at Mutual Service Corporation. He lives in San Diego. You can follow him on twitter @bamransom.

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