GEPHARDT RECEIVED TWO UNSECURED LOANS FROM MCAULIFFE BANK

Drudge ^ | July 12, 2002 | Drudge

[zook]

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.

[RAT Patrol]

This could be fun, a scandal war.

[hchutch]

SOMEBODY leaked something.

This just put the Dems in the "everybody does it" category. Lovely! Lovely! No more traction for the Dems!

[Snardius]

PSST, They ALL do it

I have always been curious about how, on a congressman's salary, someone can retire wealthy after 30-40 years in "public" service.

[VRWC_minion]

If the loan was repaid and if any bank would have made it there is nothing here folks. Except maybe a tit for tat.

[billhilly]

Maybe someone remembers the house on the Outer Banks of North Carolina owned by Gephardt a few years ago. I believe he sold it after it was discovered that he hd some kind of sweetheart deal on it.

[Sub-Driver]

oh goody........

[mombonn]

I heard a discussion of this somewhere either earlier today, or last night. One comment made regarding the transaction is that it would violate federal election laws.

We can always hope. I'd LOVE to see terry mcawful and dickie nailed.

[fivetoes]

I think it is way past time for a 'SCORCHED EARTH POLICY' on all politicians. This nation was founded on priniciples of morality. One of the founders said something along the lines that this form of government could not work unless its leaders were people of principle and fine moral character.

What we see coming to roost is years of moral neglect and decay. We, as a nation deserve these politicians becaue we went to sleep and did not rise up and stamp out the corruption. Now when it has spilled over to the private sector and is blatant we all want to jump on a bandwagon.

We either seek and destroy corruption at every level and demand that our leaders have moral fortitude or we will only visit this again and again and again.

[Victor]

"....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....."

OK, that explains it. Thanks. In other words, this was a "gift" (translation-"bribe") that he never reported or talked about.

[eureka!]

I think we will start to see the field narrowing.

OTH, this may just be some very good opposition research. Time will tell...

[Billthedrill]

Can't be true - only the wascally Wepublicans are capable of fraudulent business arrangements...right, Hillary?

[hchutch]

All this does is take that card out of their hands. Mutually Assured Political Destruction. This is going to keep the Dems from politicizing this much more, and the media will focus on something else...

Like the Winona Ryder shoplifting trial (UGH!). Anyone here on FreeRepublic want to take up wargames instead?

[Howlin]

It sure does.

[The Vast Right Wing]

Well, they have a good salary and if they save and invest wisely they can retire with a few million. However, for the most part they all get lots and lots of perq's. I am trying to buy a new house. In the development where I want to buy they are reserving the best lot for a "VIP" which I have learned is the son of a local politician. I doubt they guy will get the house for any less than you or I, but because it is the best lot it will have a much higher resale value. This is just a simple example, but it must go on all the time. The reality is in this world, who you know is very important. Everyone plays "you scratch my back and I'll scratch yours" it is human nature. The difference is in who you meet and get to become friends with. For politicians it is more often than not wealthy people that are looking for influence. It has been this way since time immemorial and will always be this way.

[Alberta's Child]

Gephart was never a serious presidential candidate to begin with. If you want to run for the White House, you sure don't do it while you're a member of the House of Representatives. A governor is far more likely to become President than a Congressman.

[Oldeconomybuyer]

More from Yahoo Search:

"McAuliffe wasn't wealthy, but he realized that the connections he had made from fundraising could help him get that way. So in 1987, McAuliffe, who had registered with Congress as a lobbyist while in law school, opened a lobbying firm, McAuliffe, Kelly & Raffaeli. That year, he also became chairman of Federal City National Bank, a small savings and loan on Capitol Hill. In 1988, Federal City accepted millions of dollars in deposits from the Gephardt campaign and loaned the campaign several million dollars more.

McAuliffe's double-dipping raised eyebrows. He appeared to be using his Gephardt connections to direct deposits to a bank that he helped run, a clear conflict of interest. McAuliffe insisted that he had recused himself from bank discussions regarding the transactions. Three years later, federal regulators accused the bank of unsound business practices, and it almost collapsed before merging with another S&L. Thus began a pattern in McAuliffe's conduct of business: During the next decade, his private business often benefited from his political ties, but no one could prove that he'd broken any laws. And because he was not an elected official, no one paid his business dealings much attention."

LINK

[aristeides]

Hmmm, Bonior is leaving the House. If Gephardt is forced out of the leadership, does that mean Nancy Pelosi takes over the Dems in the House?

[Grampa Dave]

Thanks!

I borrow these great pictures when they are posted here and other sites. Sometimes, friends who know my sense of humor when it comes to rats, email me the pictures.

Then, I email the html codes to me with an appropriate title. When something like this comes up, I often have an appropriate picture for the situation.

When my old computer died of old age and over Freeper Use in May, I lost a lot of oldies but goodies. So, I'm in the process of adding to my picture/cartoon Freeper Garden.

Conservatives love humor, and humor devastates the left wingers when it is reality humor about them.

[Blood of Tyrants]

Ho hum. He is a liberal and will be completely ignored by the very same press trying to screw Bush and Cheney.