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GEPHARDT RECEIVED TWO UNSECURED LOANS FROM MCAULIFFE BANK
Drudge ^ | July 12, 2002 | Drudge

Posted on 07/12/2002 8:34:24 AM PDT by zook

Edited on 07/12/2002 9:33:55 AM PDT by Admin Moderator. [history]

MY LOAN WAS CLEANER THAN YOURS: GEPHARDT RECEIVED UNSECURE LOAN FROM MCAULIFFE BANK

A bank founded by DNC chairman Terry McAuliffe -- which federal regulators determined used unsafe and unsound banking practices -- awarded an 'unusual and unsecured' loan to Gephardt in the late 1980s... MORE... While Running The Federal City Bank, McAuliffe Also Served As Finance Director For Dick Gephardt's Failed Presidential Campaign...

XXXXX DRUDGE REPORT XXXXX FRIDAY JULY 12, 2002 12:28:37 ET XXXXX

MAN IN THE MIRROR: GEPHARDT RECEIVED UNSECURE LOAN FROM MCAULIFFE BANK

My Loan Was Cleaner Than Yours!

"It is hard to lead when you haven't done the things that you're asking others to do," Rep. Richard Gephardt of Missouri, the Democratic leader in the House of Representatives, said of President Bush's low-interest loans more than a decade ago from an oil company where he served as a director.

"It's time this CEO, President Bush, took responsibility for his actions as a private businessman and as President of the United States," Democratic National Committee Chairman Terry McAuliffe declared this week. ""President Bush likes to preach responsibility.... when it comes to his own records, the motto is: 'The buck stops over there.'"

Yet records show: A bank founded by DNC chairman Terry McAuliffe -- which federal regulators determined used unsafe and unsound banking practices -- awarded an "unusual and unsecured" loan to Gephardt in the late 1980s!

MORE

McAuliffe and several other Democratic Party stalwarts founded Federal City Bank, which drew many of its clients from its political connections.

While sitting on the bank's board, McAuliffe also served as finance director for Gephardt's failed presidential campaign.

During that time, Federal City made a $125,000 loan to the Gephardt Campaign.

McAuliffe contended that he abstained from voting on the loan.

The loans were "unusual and unsecured" and might have violated Federal election laws because it was unlikely they would have been made had it not been for the ties to the campaign of the two bank officers, it was reported at the time.

Defending the loans to Gephardt's campaign, McAuliffe said that another Washington bank had told the Federal City Bank that it would advance the money for the loan. He said his bank had a letter from the other bank that they had approved the loan. But, when asked for the document, neither McAuliffe nore the bank's senior loan officer would furnish the letter or disclose the name of the bank they said had initially pledged to make the loan.

An industry trade publication noted that Federal City lost $1.5 million in its first three years in business. In October 1991, federal regulators cited Federal City for unsafe and unsound banking practices and forced the bank to raise more capital or face being shut down.

"Everyday, more questions arise," McAuliffe said this week.

Of Bush.


TOPICS: Breaking News; Business/Economy; Crime/Corruption; Government; Politics/Elections
KEYWORDS: gephardt; hypocrite
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To: cactusSharp
And what was his quote yesterday? Something like "it's hard to show leadership when you've engaged in the practice you seek to outlaw".
21 posted on 07/12/2002 8:47:07 AM PDT by zook
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To: PhilDragoo
She wants to run in '04--too ugly for plastic surgery in '08.

Oh, now, surely, you don't think "she" was behind this, do you? Not "her." "She" wouldn't want to, uh, reduce the field of potential candidates for '04, now, would she? No, absolutely not. [Of course, if "they" demand "she" run to save the party, well, of course, being the good, patriotic, Democrat "she" is, why, yes, "she" will step forward to carry the torch. Oh how brave of "her" to do that, to step forward.]

Oh, FR obligatory BARF ALERT!
22 posted on 07/12/2002 8:47:55 AM PDT by TomGuy
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To: Mike K
OK, but why is it "fraudulent" to receive an unsecured loan?

Lots of people do it everyday...it's called having a credit line.

23 posted on 07/12/2002 8:48:16 AM PDT by Victor
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To: Grampa Dave
Interesting but did he pay them back. I have gotton unsecured loans and paid them back. Question is,,what was the market interest rate and what did he pay. And was it repaid. If it was competetive and he paid them back, I don't really care. But with all the stone throwing at GWB it is a bit of a tickle to read this. I think these guys are all terrified of the business stuff and want to deflect questions onto Bush and wanta put someone in jail pronto before things start coming to light. Convinced the whole damn congress and Senate are crooks here with few exceptions.
24 posted on 07/12/2002 8:48:18 AM PDT by cajungirl
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To: Grampa Dave
Will this be reported on the Big TreeThree tonight? I kinda doubt it. On Sunday watch Tim Russert avoid it as well
25 posted on 07/12/2002 8:48:22 AM PDT by shadeaud
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To: Frank_Discussion; zook; All
THIS CARTOON HAS TRICKY LITTLE DICKIE NAILED!


26 posted on 07/12/2002 8:49:05 AM PDT by Grampa Dave
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To: zook
Well, so much for all of the business scandal's as a political weapon. (PSST, They ALL do it).
27 posted on 07/12/2002 8:49:12 AM PDT by The Vast Right Wing
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To: eureka!
Looks like somebody decided that little Dickie is not going to run for president...

Someone associated with Clintonista McAuliffe?

28 posted on 07/12/2002 8:49:23 AM PDT by aristeides
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To: TomGuy
Save the Party?

You mean SAVE THE WORLD!

29 posted on 07/12/2002 8:49:45 AM PDT by Falcon4.0
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To: zook
Drudge added this:

"A bank founded by DNC chairman Terry McAuliffe -- which federal regulators determined used unsafe and unsound banking practices -- awarded an 'unusual and unsecured' loan to Gephardt in the late 1980s... MORE..."

30 posted on 07/12/2002 8:50:00 AM PDT by Constitution Day
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To: Grampa Dave
Good one!
31 posted on 07/12/2002 8:50:32 AM PDT by Fred Mertz
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To: zook
From Yahoo Search:

In 1987, McAuliffe became finance chief for Rep. Richard Gephardt's presidential primary campaign, and, shortly before, he had served on the board of the Federal City National Bank, which loaned the Gephardt campaign a total of $1.4 million. While he worked for the Missouri Democrat, his business and political ties came under scrutiny when it appeared that some of the loans were unsecured, a charge later denied by McAuliffe and Federal City. McAuliffe told reporters at the time that he had abstained from voting on the approval of the loans.

LINK

32 posted on 07/12/2002 8:51:15 AM PDT by Oldeconomybuyer
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To: aristeides
I wonder how much money the loans were for.
33 posted on 07/12/2002 8:51:21 AM PDT by Fred Mertz
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To: zook
And just yesterday little dicky was running his mouth how President Bush was a hypocrite at trying to solve the financial crises in America. So what’s up little Dicky? Are you starting to shrivel?
34 posted on 07/12/2002 8:51:38 AM PDT by demlosers
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To: Victor
Can anyone fill me in on what this means?

It means that ALL politicians are scum and none of them belong in OUR house or OUR senate.

35 posted on 07/12/2002 8:52:05 AM PDT by unixfox
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To: shadeaud
You posted, "Will this be reported on the Big TreeThree tonight? I kinda doubt it. On Sunday watch Tim Russert avoid it as well!"

Which is one of the prime reasons, that I stopped watching the DNC evening Mantra spin cycle posing as evening news on CNNCBSNBCABC IN 1992. I haven't missed their nightly lies and omission of real news at all.

36 posted on 07/12/2002 8:52:11 AM PDT by Grampa Dave
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To: Grampa Dave
Great pic gramps, where do you get all your great pics!?
37 posted on 07/12/2002 8:53:24 AM PDT by Black Agnes
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To: mountaineer
How else to pay for his mansion in North Carolina, er, wherever he lives now (it sure as heck isn't St. Louis)?

I recall hearing that Dickie has a very nice beach house near Duck, NC.

Seems like he played it both ways when he bought it. Told the bank it would be a managed 'investment' property and told the IRS it was a second home and took the deduction.

I can't recall the details or how it washed out, but it must have been before '94, cause he got a pass from the ethics committee.

38 posted on 07/12/2002 8:53:53 AM PDT by TC Rider
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To: zook
Where's The Rest?I Can Hardly Wait!!!
39 posted on 07/12/2002 8:54:03 AM PDT by bandleader
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To: Victor
Basically, Joe Punchclock can't just walk into a bank and borrow, say, $30,000 without some home equity or securities to back it up. If you do get such a loan, the rates are going to be quite high. If a politician gets an unsecured loan at an interest rate lower than most people would have to pay, that can be considered a gift and they would have to report it.

Clinton got such a loan to pay for that place in Westchester Co., but since he was getting out of politics he could argue that his buddies in Hollywood, etc. were going to pay him big speaking fees. The closest example this has is to Rep. Jim Moran, who is currently in ethics trouble for getting recieving such a loan.

Until we know the circumstances of the loan, we don't know what this means. At the very least this will mean one less politico going on about Harken/Halliburton. Terry Mac is pretty much damaged goods at this point from his Global Crossing chicanery. If this looks particularly bad Gephardt could be out of the leadership.

40 posted on 07/12/2002 8:54:38 AM PDT by Cu Roi
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