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Dealings with Banks

According to a Washington Post article this weekend, U.S. Senators Conrad and Dodd were cleared by the Senate Select Committee on Ethics with respect to the senators' membership in Countrywide Financial's VIP mortgage program. The committee concluded that the senators were given special treatment, but that others were given similarly special treatment and that the senators did not benefit financially. But the committee criticized them for their lack of concern for the appearance of impropriety and for their apparent lack of curiosity concerning the VIP program.

Local governments do a lot of business with banks, and banks would logically want to give some officials special treatment. Officials who are in any position to influence which banks get local government business should refuse such special treatment, whether they would benefit financially or not, and should disclose their dealings with banks (including those that do not do business, but might seek to in the future), so that there is no question the relationship is above board.

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