Several Washington D.C. lawmakers are caught up in an ethics investigation over VIP cash loans given to their staffs. Bank of The US bought all of these "Sweetheart" or "VIP" loans that Countrywide made. All of these VIP cash advances are likely going to give senators a hard time legally. Resource for this article - Senate Ethics Committee investigates VIP loans by Personal Money Store.

Countrywide creates VIP loans

Many "sweetheart" loans were given out by Countrywide, according to Bank of The United States documents. These low interest rate, no credit check loan products appear to have been targeted to senators' staffs. Issa, who is a Republican senator, saying a "high concentration" of loans were given to DC staffers and explained it was unethical. The theory is that Countrywide wrote these extra cash loans in hopes of influencing Senator's staff members and also the Senators. 2002 and 2003 were the years the loans had made.

Loans being complained as bad ethics

Various senators had ethics complaints by Senator Issa filed about them. Last year, Senator Dodd and Senator Conrad were both "scolded" by the Ethics Committee. They were told they had to "be more careful to stay away from the appearance of favoritism from Countrywide." Despite the scolding, both senators were cleared of actual rules violations. Senator Robert Bennett has been tattled on in the ethics complaint filed most recently. Twelve of the 30 named "VIP loans" went to members of his staff.

Names of everyone who got a VIP loan

The investigation on Countrywide VIP cheap loans is being done by an Oversight and Government Reform committee from the Senate. Any documents Bank of The US has from VIP loans that have "US Senate" written down for their employment must be handed over to the government right away for the investigation. Thus far, Bank of The US has provided 37,000 documents related to Countrywide and their lending practices. Numerous will have troubles with the November election if names are actually given out and reported.

Issue discussed by Senator Burnett

Republican Senator Burnett, who is not running for re-election, has responded in detail to the ethics complaint filed against him. In short, Senator Burnett said that he doesn't make it a point to discover out where his staffers do their banking. He didn't ask his employees about any mortgages or unsecured loans they may have gotten.