Feinstein responds to conservative newspaper's charges

Dianne Feinstein has labeled a Washington Times report “inaccurate and unfair.” The newspaper suggests California’s senior senator introduced legislation that rewarded her husband financially. KPCC’s Washington Correspondent Kitty Felde reports.

Dianne Feinstein has labeled a Washington Times report “inaccurate and unfair.” The newspaper suggests California’s senior senator introduced legislation that rewarded her husband financially. KPCC’s Washington Correspondent Kitty Felde reports.

Kitty Felde: In early January, Senator Feinstein introduced a bill to send $25 billion to the Federal Deposit Insurance Corporation – the government agency that insures bank deposits. The money was to help slow the flood of foreclosures.

The Washington Times says two months earlier, the FDIC awarded a contract to the global real estate firm CB Richard Ellis. It’s chaired by Richard Blum – Feinstein’s husband. The FDIC wanted the firm to help it sell foreclosed properties it had acquired in bank takeovers.

The suggestion in the Washington Times article is that the money in Feinstein’s bill would enrich her husband. A Feinstein statement says she knew nothing about the FDIC’s contract with CB Richard Ellis until the newspaper made an inquiry.

She says the contract was awarded by competitive bid and without her knowledge. As it turned out – Feinstein’s bill to pump money into the FDIC was superseded by action taken by President Obama.

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