This Appears To Be Worthy of JAIL - RIGHT NOW

The Market Ticker ^ | October 27, 2010 | Karl Denninger

[crosstimbers]

This Appears To Be Worthy of JAIL - RIGHT NOW

You have to be kidding me...

Shortly after Labor Day, as polls continued to sink, the Democratic National Committee (DNC) realized it needed a cash infusion for the upcoming midterm elections. Its chairman, former Virginia Governor Tim Kaine, turned to the Bank of America to secure a $15 million revolving credit line. Then, in the middle of this month, the Democratic Congressional Campaign Committee (DCCC) got another loan from BofA for an additional $17 million.

Problem: Was the loan adequately collateralized - that is, truly "arms length"?

Worse: Two days before the loan was closed, the DNC apparently changed its privacy policy - it appears they may have effectively pledged their donor and contact lists without the consent of most of the people on them!

The DNC loan agreement as posted online by the Federal Election Commission (FEC) and signed by former Virginia Governor Tim Kaine (D) on September 16, 2010, says the loan collateral included: “All electronic mail (‘E-mail’) addresses and other contact lists, records and other Information (electronic or otherwise) relating to contributors, supporters and subscribers owned by any of the Borrowers.” The borrowers in this case were the DNC and the DNC Services Corporation.

The loan agreement further stipulates that if the Democrats defaulted, Bank of America would be entitled to “proceeds from any fundraising activity, refunds, reimbursements, or proceeds from the rental or sale of mailing, contact or subscription lists or Information (electronic or otherwise).”

WHAT?!

[cripplecreek]

Well isn’t that special.

[darth]

On odd days, Denninger walks on water.

Yes, it appears that B of A paid a big, fat bribe.

I find one issue where every Democrat and Republican agrees with me: We have evidence of over ONE TRILLION DOLLARS in fraud and where are the indictments?

This is one of the primary issues for the 2012 election. Clean up the white collar crime cesspool.

[p. henry]

Might I humbly suggest that all conservatives who have business relationships with Bank of America TERMINATE THOSE RELATIONSHIPS RIGHT NOW!

[True Grit]

Virginia Governor Tim Kaine,

Now there is a Major League "A".

[darkangel82]

A big league Clymer?

[True Grit]

A big league Clymer?

YES HE IS

[cripplecreek]

The loan agreement further stipulates that if the Democrats defaulted, Bank of America would be entitled to “proceeds from any fundraising activity, refunds, reimbursements, or proceeds from the rental or sale of mailing, contact or subscription lists or Information (electronic or otherwise).”

Wonder how democrat donors would feel knowing that money they donated to the democrats has been promised to BofA if the democrats fail to pay back the loan?

So typical of the democrats to stir up anger at the banks but promise money from those same angry people to the banks they're angry at.

[Noob1999]

Since most of the big money donors are a bunch of initials, most of them having a U. in their names, the list of donors will be relatively short.

However, the members of these U. donors might have to have a special dues assessment!

[KevinDavis]

Glad I left BoA...

[Keith in Iowa]

The loan agreement further stipulates that if the Democrats defaulted, Bank of America would be entitled to “proceeds from any fundraising activity, refunds, reimbursements, or proceeds from the rental or sale of mailing, contact or subscription lists or Information (electronic or otherwise).”

Cool. Bank of Amigo can sell the 'Rat donor list if they default...

[sauropod]

bflr