Waters faces ethics trial over bank funds

WASHINGTON - Rep. Maxine Waters (D-Calif.) will face a trial for her role in steering federal funds to a bank to which she is personally connected, the House ethics committee announced yesterday, setting the stage for a September that will be dominated by news of House Democrats' legal travails.

With an initial investigatory subcommittee having completed its work, the ethics panel said it had created an adjudicatory subcommittee to "determine whether any counts in the Statement of Alleged Violation [against Waters] have been proved by clear and convincing evidence and to make findings of fact."

People familiar with the case told The Associated Press that Waters is accused of violating: (1.) a rule that House members may not exert improper influence that results in a personal benefit; (2.) the government employees ethics code, which prohibits granting or accepting special favors for the employee or family members that could be viewed as influencing official actions; and (3.) a rule that member conduct must reflect creditably on the House.

A similar subcommittee began its trial last week of Rep. Charles Rangel (D-Harlem).

The ethics panel did not specify when it would hold its first public hearing in the Waters case. Waters is being investigated for her role in arranging meetings between Treasury Department officials and representatives of minority-owned banks.

Waters' office issued a statement yesterday denying any wrongdoing.