McCain Loan to his Campaign Raises Regulatory FEC Questions-Trouble?

[Ichingcarpenter]

WASHINGTON (AP) - The government's top campaign finance regulator says John McCain can't drop out of the primary election's public financing system until he answers questions about a loan he obtained to kickstart his once faltering presidential campaign.

Federal Election Commission Chairman David Mason, in a letter to McCain this week, said the all-but-certain Republican nominee needs to assure the commission that he did not use the promise of public money to help secure a $4 million line of credit he obtained in November.

McCain's lawyer, Trevor Potter, said Wednesday evening that McCain has withdrawn from the system and that the FEC can't stop him. Potter, who was FEC chairman in 1994, said the campaign did not encumber the public funds in any way.

"Well, it was done before in another campaign. ... We think it's perfectly legal. One of our advisers is a former chairman of the FEC, and we are confident that it was an appropriate thing to do," McCain told a news conference Thursday.

By accepting the public money, McCain would be limited to spending about $54 million for the primaries, a ceiling his campaign is near. That would significantly hinder his ability to finance his campaign between now and the Republican National Convention in September.

Complicating the dispute is the FEC's current lack of a quorum. The six-member commission has four vacancies and Senate Democrats and Republicans are at loggerheads over how to fill them.

In his letter, Mason told McCain he would need the votes of four commissioners to accept his withdrawal from the system.

"The commission will consider your request at such a time as it has a quorum," Mason wrote.

Without action by the Senate, McCain could be waiting indefinitely.

"We believe that Senator McCain had a clear legal right to withdraw from the primary matching fund system and he has done so," Potter said. "No FEC action was or is required for withdrawal."

Potter said McCain will continue with his campaign and not adhere to the public financing system's limits on spending. Without a full commission, Mason has little enforcement power. Likewise, without an FEC, McCain has no way to appeal Mason's conclusion.

At issue is the fine print in the loan agreement between McCain and Fidelity & Trust Bank. McCain secured the loan using his list of contributors, his promise to use that list to raise money to pay off the loan and by taking out a life insurance policy.>>>>>snip

http://www.wtopnews.com/?nid=213&sid=1349054

[Gman]

1. Is this another way the far right is going after McCain

like the lobbyist bimbo story?

[Ichingcarpenter]

2. I don't know if its right wing since the Commission is calling him on this

But it does effect end game money politics


"The dispute comes at an awkward time for McCain. While he has sought to bypass the public financing system for the primaries, he would like to participate in the system for the general election and he is attempting to hold Democrat Barack Obama to his offer to participate in the system too."

"If McCain were to face Obama in the general election under public financing rules, each would get about $85 million to spend between September and Election Day in November. McCain would be the clear beneficiary because Obama has become the most prolific fundraiser in presidential politics and likely would be able to amass much more than $85 million from his donors."

[Virginia Dare]

3. More chinks in the integrity armor..

looks like Huckleberry will be the last man standing.