Senator From NJ Urged Fed to Aid Home State Bank

[The Northerner]

Source: Associated Press

Sen. Robert Menendez wrote to Federal Reserve Chairman Ben Bernanke last summer seeking help for a home state bank operated by campaign contributors, specifically asking for approval of an acquisition that would have rescued the institution.

Requests on behalf of constituents — even political donors — are not unusual. But such inquiries typically urge government agencies to expedite an action, not to act in a certain way. What made Menendez' letter stand out was that it pressed the Fed to take measures to avoid putting the bank — First BankAmericano — in receivership.

"I write to ask the Federal Reserve to grant the attached application," the letter says. Two paragraphs later, it adds: "I urge you to support the proposed acquisition..."

The existence of the letter was first reported on Tuesday by the Wall Street Journal.

Menendez spokesman Afshin Mohamadi says the language in the letter was an unintentional error and that making a specific request for action was a mistake.

Read more: http://abcnews.go.com/Business/wireStory?id=9790501