Bil Browning

Wachovia lends $8 mil to Republican party: Small businesses still can't get a loan

Filed By Bil Browning | October 13, 2008 1:00 PM | comments

Filed in: Living
Tags: bad mortgages, Citibank, financial crisis, Republican party, Wachovia, Wall Street, Wall Street bailout, Wells Fargo

I can admit that I don't know too much about the economy - after all, it's hard to worry about inter-bank credit when you're greedy-republicans.jpgbarely able to afford your own health insurance. I do know that I'm not happy in the least about bailing out Wall Street fat cats when I see a lot of my Indianapolis neighbors going "feral" as they lose their homes.

I'm even less happy with this news: Wachovia loaned the Republican party $8 million - at the same time they had to be rescued by the FDIC and sold to Wells Fargo.

WTF?

So let me see if I have this right.

  • Wachovia has a history of giving to the Republican party. The company's PAC gives 62% of their donations to Republican candidates.
  • The federal government steps in to save Wachovia. The bank gets sold to Citigroup by the FDIC, but at the last minute is bought by Wells Fargo.
  • George W. Bush, Republican, is in charge of the federal government.
  • While the average American can't get a car loan, Wachovia finds enough cash to give the Republicans an unsecured loan of $8 million to fund last minute campaign activities.
  • John McCain, Republican candidate for President, is best known for being a millionaire champion de-regulator of the financial industry.
  • Deregulation and industry insider greed caused the downfall of the economy and the need for the government to pump billions into the banking industry.
  • Who gets a good chunk of that change? Congressmen who voted in favor of the bailout, the de-regulators and industry insiders...

Yeah, maybe - just maybe - there's a reason why Americans are demanding change. I know I sure as hell can't stomach another four years of this shit.

What's pissed you off the most during this election cycle? What isolated incident makes your blood boil and definitely tips you into the Obama camp?

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Blockmeister | October 13, 2008 1:29 PM

I'm with you Bill. I don't understand some of what is going on, either. Not sure I want to completely understand all that's going on in fear of wanting to slit my wrists in disbelief.

I suppose this means the Republican Party is now financially, as well as politically and morally, bankrupt?

Michael Crawford Michael Crawford | October 13, 2008 2:17 PM

I saw this story too and could not believe how crazy it is. I guess Wachovia knows that they will get political payback from the GOP at what point or another.

Wachovia knew that Citibank or Wells Fargo would end up owning them anyway, and the loan probably will have their approval.

Anything necessary to get another pliable amoral dummy placed in the Oval Office, instead of someone with morals and scruples who can actually think for themselves. Obama's election must scare them - imagine, a President with a brain, who might tell the big bankers NO!

Considering it was McCain and his economic advisor, Phil Gramm, who helped to get most of the regulations removed or changed back in the late 90's and early in Bush's presidency so that banks could play fast and loose with other peoples money, it makes perfect sense. The bankers owe a lot to these two for 'services rendered'.

I have heard that McCain has the cahones to try and put the blame for the present mess on the democrats. He is supposedly running ads that say it was the democrats who caused the bank and credit meltdown we are currently going through by their spendthrift policies or something.

Melanie Davis | October 13, 2008 7:04 PM

I think you're reading way too much into this. Our Nation's future is at stake, let's not finger-point and bring up dubious parallels between what could be wholly unrelated processes.

Now be a nice boy, drink your kool aid, and don't ask questions.

Right, what are we saying, I mean it can't be anyone's fault that a budget surplus turned almost overnight into a massive shortfall which has now added up to ten trillion dollars, and counting. All so we could go show some uppity Arabs the old what for.

Perish the thought that someone could be responsible for such a thing happening.

Robert Ganshorn Robert Ganshorn | October 13, 2008 11:45 PM

To be precise we were in budget surplus for the second time in my life and for one year only, just like the last time, with Richard Nixon. Our government has continued to allow the debt bomb to grow. Local congressmen squeal when a pointless or obsolete military base is closed in their district. We continue to deploy troops all over the world, where they are not needed, in bases that are part of the legacy of WW II as we proudly sail our navy ships across the seven seas on pointless missions.

My hope for Obama is the hope that we rediscover sanity, retool our industry, revamp our education and restore the ability to dream.

Perish the thought that someone could be responsible for such a thing happening.

Now, remember what McCain told us... "Now is not the time to assign blame."

Not Wachovia! They were my favorite failed bank!

I know... a little about banking and the economy. Most of my information comes from reading the news (Reuters and listening to This American Life).

First: 8 million dollars to a bank like Wachovia is nothing. The analogy to your average person has something to do with pennies or pocket lint or somesuch not-very-valuable thing. (I'm not very clever with analogies) Divide 8 mil by the 700 Billion bailout to get a percentage.

Second: The Republican Party has good credit. No-comment on anything else but ability to repay loans. While your neighbor or a small business might be facing significant financial trouble, the Republican Party makes much more than 8 million every year and should have no trouble at all paying all of this back.

It is a little excessive to insinuate conspiracy for this particular incident. I seriously doubt any political motivation to this, a reasonably good business decision.

beachcomberT | October 18, 2008 11:03 PM

True, the amount is pocket change for Wachovia. Still, it would be nice to know what interest rate the RNCC is paying, and if any Republican poohbahs had to give personal guarantees to secure the loan.

Im from England and the fact that so much money is pored into these campaigns all the while they saying they going to make a change. The fact that American banks are the ones that fucked up the whole damn economy should be enough to see that this should not be happening.

Thank god this charade is almost over.

Oh one last thing if that old hick chump gets into power I wish you all good luck.

Like Kate Clinton said, the only thing left of my bank is the free pen.

Rev. Rick Elliott | October 19, 2008 3:06 PM

I went to U of N. Carolina when Wachovia was just a regional bank. They tried to attract lots of students, but messed them around with hidden fees and such. fortunately I banked at the other bank choice.
Several years ago I had an investment account with Prudential. I did quite well. However, Wachovia apparently bought t that firm. My nest egg dipped because she was getting bad information. They dumped my broker om some trumped up reason--probably because her first priority was her client's best interest, By the time I left Wachovia, my nest egg I'd saved was worth 1/3 of what it had been while Prudential was in charge.
I now have a Wachovia bank in walking distance of my home, but nothing except lots of hard cash could get me to bank there.