I Have a Dumb Question

[Gruenemann]

I'm asking this in all sincerity knowing that Senator Clinton is a shrewd businessperson. Is she earning interest on the $5,000,000 dollar loan she made to her campaign?

[DJ13]

1. Yes

Its standard practice to charge your own campaign interest for a loan you made to it.

It shouldnt be, but it is.

[RUMMYisFROSTED]

2. Probably not.

But as soon as she got $30 million in donations the loan became moot.

Unless she overspends again.

[Gruenemann]

3. So it was a short-term loan that's already been paid back? n/t

[RUMMYisFROSTED]

6. I don't know.

I've never had $5 million to loan myself.

Sorry.

[meow mix]

4. unless im not remembering correctly.. she made about $70,000

off the 5 million loan.

i think thats what it was..

[Exilednight]

5. Yes, she is making a profit and charging interest. It's a low interest rate, but none the less ....

she will profit.

[latinolatteliberal]

7. Yes, at a rate of 1.26%

http://query.nictusa.com/cgi-bin/dcdev/forms/C00431569/324192/sc/ALL

[Kurt_and_Hunter]

8. Interest is a legal requirement. (Otherwise the skipped interest would be a gift)

Conforming to election law is only considered a scandal here on DU.

Sad.

[Exilednight]

9. It's not. Romney charged his campaign 0% interest, and it's perfectly legal.

[Kurt_and_Hunter]

11. Hmmm... maybe you're right, but I'd bet there's some formal reason for the interest

[onenote]

13. I've seen his loans described that way, but haven't seen his FEC report.

I've looked for it but haven't found it. I'd be interested to see if the description of the loan as "interest free" is in fact accurate.

[Exilednight]

15. He'll have to disclose them eventually, but if it were illegal, or against the rules.....

other candidates would have been all over him for campaign infractions.

[onenote]

16. My point is that while they may have been described as interest free in the press

Whether they are or not actually completely interest free is something that can only be determined by looking at the FEC report which I haven't been able to dig up (searching the FEC site is a pain in the butt).

[The_Casual_Observer]

10. I'd say.

[onenote]

12. My understanding is that (a) she is owed interest at a below market rate

and (b) that the loan had not been repaid as of the last FEC report (although that may have changed by now).

There is nothing wrong with interest being charged on the loan. While other candidates have characterized their loans as "interest-free" I'm not sure that is in fact accurate.

While I'm backing Obama (but will support whomever is the nominee), I have defended and will continue to defend HRC's loan to the campaign. It was perfectly appropriate and strategically sound. My fellow Obama supporters who have tried to make something of it are simply being silly (an affliction suffered by the more enthusiastic supporters of both HRC and Obama).

One factoid that does concern me a bit about HRC's campaign v. Obama's is that public records indicate that administrative costs make up about 51% of HRC's expenditures and only 41% of Obamas. ANd 34 percent of Obama's expenses are on media buys, while HRC only is spending about 26 percent on media. I think its better for campaigns to spend more on media and less on "administration" Both spend about the same on other campaign expenses. And Obama spends around 9 percent on fundraising while HRC only spends around 5 plus on fundraising. Its a plus that HRC gets as much bang for the buck from her fundraising effort; on the other hand, again, I'd rather see her spend a bit more on fundraising and a bit less on administrative costs.

[TexanDem]

14. that loan was paid back within days. Donations covered it.

As soon as her followers realized she needed money, they came to the rescue. It was only like over the weekend or something that the campaign had use of her personal funds.

[onenote]

17. I don't think that is correct.

More than enough money was raised to repay the loan. But that doesn't mean that it was necessarily repaid immediately.

[TexanDem]

18. yes, I remember it from hearing it discussed on news talk shows

I can find with google about the loan - it was on Feb 6. But I can't find an article about it getting paid. But I do remember hearing Hillary herself admitting that she had made the loan and adding that she had already been paid back. It was within a very short period of time. Sorry I can't find a link.