This is a situation where the traditional “…Wait. WHAT?” seems a bit… understated: “Obama For America took out a $15 million loan from Bank of America last month, according to the campaign’s October monthly FEC report. The loan was incurred on September 4 and is due November 14, eight days after the election. OFA received an interest rate of 2.5% plus the current Libor rate.”
Now, I could say a lot of things about this. I could say that it is passing strange for a campaign to borrow walking-around money when it’s supposedly a fundraising mega-machine (the Government Accountability Institute is a little concerned about that, actually). I could say that it’s remarkably awkward that Bank of America apparently has a much cozier relationship with Obama for America than the latter’s faux-populist message might imply. I could even say that Warren Buffett may have found a fairly clever way to dump fifteen million into the Obama campaign without having to answer to those pesky finance laws that Obama once supported, until they all got in the way. But I won’t.
Instead I’ll say: I really hope that Bank of America has some good collateral on that loan, because they ain’t seeing that money paid back any time soon.
Moe Lane (crosspost)
I wonder if it could be related to this:
http://abcnews.go.com/blogs/politics/2011/10/durbin-to-bank-of-america-customers-get-the-heck-out-of-that-bank/
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I opted out of BoA about the same time, although certainly not on Durbin’s advice! (I wouldn’t carry an umbrella if Durbin said it was likely to rain…)
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Mew
I can see the childish spin now…
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Obama For America: Hey, at least we took out a loan from Bank of AMERICA. Mitt Romney does all his banking at Wells “Jobs Fargo.” But also banks are giving out loans again! Isn’t that great news in itself? Anybody?
BoA donating $15 million? Honestly, I’m surprised that more banks haven’t donated in this way to Obama. On that note, I’m surprised that ABC/NBC/CBS even charges the Obama campaign for advertising.
Did BoA take bailout money?
Aruges wins the whole day. No other comment in any other thread can come close to it.
There comes a point in a losing campaign where money becomes virtually worthless because no matter how much you spend it’s not going to move the needle, and I think we’ve reached that point.
Not only did they take bail out money, but they are lending the money out at 2.5% plus Libor, or what the bank pays. Me you and Mr. Magoo could not get a deal like that. We have to pay prime plus.
Seriously, I thought only banks got the LIBOR rate…