[Cu Roi]

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.

[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.

[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?

[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.

[InvisibleChurch]

1. thanks for the question

2. thanks for the answer