Loans Could Paint McCain Into Corner

[brooklynite]

Source: Washington Post

Sen. John McCain's campaign and a Bethesda bank strongly defended $4 million in loans yesterday, as Democrats questioned their legality and said that the way they were secured requires the Arizona Republican to abide by federal spending restrictions.

Trevor Potter, a former Federal Election Commission chairman who is McCain's lawyer, wrote in a letter to the nation's top election official yesterday that the loans were proper and that they should not prevent McCain from withdrawing from the presidential public financing system.

On Monday, the Democratic National Committee filed a complaint with the FEC arguing that the way the loans were structured -- by using the promise of federal matching funds as collateral -- requires McCain to remain in the system. McCain "secured a $4 million line of credit to keep his campaign afloat by using public financing as collateral. He should follow the law," said Howard Dean, the DNC chairman.

...snip...

Should the FEC or a federal court force him to remain within the system, he would have to abide by a $54 million spending cap until September, when the primary season ends. His campaign had spent $49 million as of Jan. 31, reports show.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2008/02/26/AR2008022603328.html

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ouch

[acmavm]

1. Senator Straight Talk might be Straight Jacketed. But his own

duplicity.

Couldn't happen to a more deserving asswipe.

[Winterblues]

2. Why should McCain even contest it, he is the nominee

He doesn't have to spend a single dime until after the convention as he has it locked up..