A House ethics subcommittee has completed its investigation into allegations of wrongdoing by Rep. Maxine Waters (D-Calif.), and could announce its next steps before lawmakers leave town for the August recess Friday, according to sources familiar with the process.

The committee is in discussions with Waters about the case, in which investigators looked at whether she broke House rules by improperly intervening with federal officials on behalf of a local bank, OneUnited Bank, that her husband owned stock in and once sat on the board of directors. It’s not clear yet what would be contained in a Statement of Alleged Violations if the investigative subcommittee determines she acted improperly.

Waters has denied any wrongdoing, saying she had no influence over Bush administration officials and that she appropriately advocated on behalf of minority-owned banks.

Waters is the second prominent African-American under the ethics microscope this week. The “trial” of Rep. Charles Rangel (D-N.Y.), a founder of the Congressional Black Caucus, is scheduled to begin Thursday afternoon.

It is extremely rare for a lawmaker to fight ethics committee charges in front of an adjudicative subcommittee, which makes recommendations for punishment to the full House.

But, Waters could also follow that route if she is not able to reach an agreement with the ethics committee and it chooses to release a Statement of Alleged Violations against her.

The committee could also admonish her not to repeat her actions — a move that would not bring a House action, as is required for more serious sanctions such a reprimand, censure or expulsion.

The committee could also announce it is dismissing the case, which was forwarded by the independent Office of Congressional Ethics. But sources familiar with the ethics case say that’s not likely.

A fwd article: -jt