The announcement was made at an unusual public hearing, USA Today reported. After hearing testimony from Waters' grandson, Mikael Moore, the committee said the evidence is insufficient "to prove violation by a clear standard which is necessary for formal sanctions."
The committee announced in 2010 it was investigating charges that Waters used her position to get a federal loan for a community bank in which her husband held stock.
A public hearing scheduled that November was canceled because of problems with the way committee staff handled evidence against Waters.
2014: The Year in Music [PHOTOS]