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.

[The South Texan]

This is just like all the Enron orgasm back in January when the Rats and the media were after the President. I told my wife the other day that all of this stuff about the President and Harken and him being buddies with "Big Business" will start dying down when the Rats have been discovered doing stuff more unethical that made what the President did look like a parking ticket. Rememeber linking Bush with Enron rapidly died back in January when it was discovered by this site,Drudge,Newsmax, etc. that the Rats going back to Clinton where more in bed with Enron than Bush ever was. Wait till more stuff comes out on the Rats and it will be fun to watch them squirm!

[helper]

You know it was only to pay for his mother's prescriptions.

[Brian Allen]

It means that he missed mentioning that the RICO Don McCauliffeleone was Herr Gephardt's campaign manager at the time the "loans" were effected, so the loans; in that they involved the misappropriation of bank/depositors funds; were also fraudulent .

[Poohbah]

I've got Phase Line Smash set up on my gaming table at home. 1st Infantry Division is about to step into attack. Jayhawks!

[Howlin]

This could be fun, a scandal war.

ROFLMAO........you're right....at the very least, it will be entertaining!

[Alberta's Child]

Clinton did not get an unsecured loan to pay for that house -- Terry McAuliffe co-signed the loan.

It's worth noting, BTW, that McAuliffe agreed to do this after two other Clintonistas (chief of staff Erskine Bowles and treasury secretary Robert Rubin) refused to do so. Rumor has it that at least one of these two was very concerned that Clinton would be unable to repay this loan due to a long unscheduled vacation in a Federal prison.

[Jim Noble]

lock 'em up!

[crusher999]

Just wait....

He'll get out of this by claiming that he needed to take out the loans in order to pay for him mother's prescriptions.

[hchutch]

No Harpoon3 for the PC?

[StriperSniper]

I'm waiting for a staffer to come and yank him off the stage!
(That would have been a dangerous line if it had been billy boy ;-)

[#3Fan]

and Gephardt is on TV right now bitching of social security privitazation...what a lieing maggot

That's Sosh Security, as Dickie says.

[Snardius]

It has been this way since time immemorial and will always be this way.

That alone doesn't make it right...

[Poohbah]

Nope. I can't afford that much PC at the moment.

Phase Line Smash is a good board game.

[The Vast Right Wing]

Correct, we hope and expect to see our leaders in government behave a little more responsibly.

[newfreep]

I wonder if the Hildebeast is leaking this info to eliminate another 2004 rival.

[Howlin]

[summer]

Wow. What a shock.

[VRWC_minion]

I am curious. Did he borrow enough to purchase a 43,000 Lexus or only enough to get a muffler ?

[#3Fan]

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.

Most of my friends are blue collar conservative NASCAR fans types. So where am I in this game?

Darn. Oh well, life is short anyway. :^)

[Grampa Dave]

When will conservatives ever believe anything that Little Tricky Dicky says?

WHEN