You are, if you're a taxpayer. Wachovia, the bank recently bailed out by the government to the tune of $312 billion, just gave the National Republican Congressional Campaign Committee an $8 million loan. It's not unusual for big campaign committees to take out loans at the end of the cycle for one last burst of resources, but it is unusual for the NRCC, which fell victim to one of the biggest campaign-finance fraud scandals ever just last year, to be given a loan by a bank that isn't giving loans to anyone. And it doesn't make it look any better when you learn that Wachovia's leadership tilts heavily toward the GOP. This investigation at Facing South tells the whole tale.
Also, to put this number in perspective and explain the NRCC's serious need for cash, check out this recent New York Times analysis of congressional races making reference to the loan:
The National Republican Congressional Committee has spent well under $1 million on advertisements in House districts, compared with more than $16 million invested in advertising by the House Democrats' campaign committee. And it can only afford to spend in defense of select Republican seats. On Wednesday, the Capitol Hill newspaper Roll Call first reported that the Republican campaign group was borrowing $8 million to buy more advertising in the closing weeks, and to avoid being heavily outspent.
On the other hand, a quick check with a Democratic operative suggests that the DCCC wouldn't have had trouble getting a loan if it wanted one; neither the DCCC nor the NRCC has ever defaulted on a loan. And thinking further, given the state of the economy and the "credit rating" of these committees, it might not be the worst investment to put a little money toward politicians -- they're the only people injecting any capital into the market these days, right? But though it's technically legal, it's a glorious example of Washington influence buying at it's finest.
-- Tim Fernholz
