Wachovia while currently seeking public bailout just extended $8M loan to the NRCC

[Robbien]

From ProgressiveSouth's diary at dKos
http://www.dailykos.com/storyonly/2008/10/9/144138/991/200/625265

Wachovia Corp., a once-thriving financial giant now teetering on the brink of collapse, confirmed today that it was extending an $8 million loan to the cash-strapped National Republican Congressional Committee for last-minute activites to support GOP House candidates.

Wachovia's decision to lend money to the NRCC -- itself reeling from a damaging financial scandal earlier this year -- is sure to draw charges of favoritism, as Wachovia denies credit and freezes assets for thousands of other customers.

Allegations of favoritism are especially delicate for Wachovia, given the company's disproportionate support of Republican campaigns and organizations.

What's more, Wachovia's loan to the NRCC comes as Wachovia awaits the outcome of precarious buyout negotations which have relied on federal backing -- inviting questions over the political activities of companies whose survival depend on public support.

Wachovia's economic tailspin this year also caused them to drastically cut back on making loans. By July 2008, Wachovia branches were turning down most loan requests that came across their desk, as The New York Times reported

. . .

Wachovia's dramatic fall -- and uncertainty around the Citi buyout -- has forced it to further slash access to capital and credit. In a widely-publicized move, Wachovia announced days later that it was freezing the short-term accounts of nearly 1,000 colleges who invested in the Commonfund -- generating panic at campuses nation-wide

. . .

Making matters worse, Wachovia's situation has grown even more precarious over the last week, as the FDIC-engineered buyout by Citi fell apart amid a storm of lawsuits after rival Wells Fargo made a counter-offer for Wachovia's takeover.

BAILING OUT THE NRCC

It was in this context that yesterday, in a little-noticed item in Roll Call (and noted by Chris Bowers at OpenLeft), that the National Republican Congressional Committee had obtained an $8 million loan from Wachovia to help out House Republican candidates in the final weeks of the 2008 elections

much more . . .

So while we are watching our 401Ks turn into 101Ks and Wachovia is turning to the Feds to pay for their luxury cruises, Wachovia is giving GOPers $8M to fight Dems. This $8M will probably be part of the package asked to be reimbursed by a taxpayer bailout.

[Supersedeas]

1. Liddy Dole has friends in Charlotte...LIDDY DOLE has friends in Charlotte...Liddy Dole--hmm, what

committee does she sit on??

And wasn't she the chair of the Congressional Republican Re-election Committee...

Liddy Dole...you have some 'splaining to do.

[Horse with no Name]

2. Proof right there.

It will be ignored.

[Robbien]

4. This $8M loan part of the fraud deal that the NRCC treasurer stole from NRCC?

There was an $8M Wachovia loan outstanding which the crooked treasurer said was paid in full. But was it?
http://www.redoklahoma.org/?p=351

During the embezzlement investigation it was discovered Wachovia misstated the NRCC's financial position in monthly reports

http://allinone.blogstream.com/v1/pid/297053.html

So now, with no money in hand, Wachovia extended a $8M loan to the NRCC. Extended or renewed to cover up fraud?

[dchill]

8. Wow.

"Are you with Wachovia?" is a question a lot of people will soon be asked...

[Robbien]

9. That was presented as just conjecture

(thus the question mark)

But it sure seems funny to me that a $8M Wachovia loan figure keeps popping up whenever there is RNCC funny business going on.

[dchill]

10. I recognize the conjecture...

But for 8 years, it's often been where anything has had to start. Then there's that smell, of course.

[JDPriestly]

3. I e-mailed my representatives in Congress on this.

People are losing jobs because their companies cannot get loans for operating expenses. This is ridiculous. I want Congress to make sure this loan is paid back.

Is this loan pay-back or quid pro quo for political favors? That is a huge question under the circumstances. Also, what collateral was used to obtain this loan? If it was the word of members of the investment class, we need to ask whether their word is backed by assets considering the fall in the stock market today. That hit a lot of folks in the investor class very hard. No doubt about that.

[dchill]

5. Kick for real "Developing..."

This really could (and should) be huge. Especially, "This $8M will probably be part of the package asked to be reimbursed by a taxpayer bailout."

[dchill]

6. Just my opinion, but you might need a snappier...

title. Something like "Wachovia SCANDAL: Developing...". Just sayin'. :)

[Solly Mack]

7. K&R

fuck it all

[trof]

11. I just...I just...aw crap. On to the Greatest, anyway.

[Triana]

12. Well - my money is coming OUT of there - bye Wack -ovah-ya! BASTARDS! n/t

[progressoid]

13. What...The...Fuck...

I know someone with a Wachovia account that will be pissed about that!!

[dchill]

14. Updated at dkos: Citi is pulling out...

http://www.dailykos.com/story/2008/10/9/144138/991

Citigroup said late Thursday that it will not try to block a merger between Wachovia and Wells Fargo, but that it would continue to seek billions of dollars in damages after the Charlotte-based bank spurned a $2.2 billion deal proffered by Citigroup at the government’s behest.

That means the FDCI-brokered deal that had the feds assuming a huge chunk of potential losses is off the table. But as noted below, it's important to remember that Wachovia is only alive now because of the promise of FDIC backing -- i.e., U.S. taxpayers may not end up footing the bill, but they made the loan to the NRCC possible.

[Robbien]

16. Citi is asking $60 billion in damages

how they worked that figure out is beyond me. How the taxpayers don't end up footing the bill if these damages are paid is beyond me also.

[Raine]

15. Aaaaaaarrrrrrrrggggggghhhhhh I got to get my money

out of there! I didn't put it in there it was foisted on me because they took over my original bank......I'm so PISSED!!!!! :argh: :mad: :nuke: