DNC owes millions to union-owned bank

debbie-wasserman-schultzDemocratic National Committee Chairwoman Debbie Wasserman Schultz is running her organization much like President Obama is running the country — in the red.

Before the November election, the union-owned Amalgamated Bank of New York wrote two loans to the DNC totaling $15 million. That’s the lion’s share of the group’s $21 million-plus debt, though it has just $4,292,138 in cash on hand, according to The Washington Free Beacon.

The Service Employees International Union, a long-time Democratic Party supporter, is a majority shareholder in Amalgamated Bank of New York, which, according to an Aug. 10 announcement, serves as the DNC’s primary bank of record.

The Democratic Party’s financial woes began when it vowed to make the 2012 Democratic National Convention an all-volunteer event with no corporate sponsors.

That effort was hailed by the Huffington Post, which wrote, “Democrats altered the balance of power at their convention,” and “Obama banned all contributions from corporations and lobbyists and capped individual donations at $100,000. Unions, meanwhile, were still welcome to kick in generously.”

When the money wasn’t forthcoming, the DNC reneged on its no-corporate-sponsor promise, but by then, it was too late.

In October, while the DNC was taking out loans with its buddies at the union-owned bank to cover the convention shortfall, the Republican National Committee was flush with $83 million in cash on hand.

The Obama administration apparently learned a lesson from all this. It actively sought corporate donors for the 2013 inauguration ceremonies — most notably from AT&T and Microsoft.

On Friday, U.S. News and World Report said Republicans, with no debt and close to $5 million in available cash, are gearing up for the next go-around. Republicans learned long ago that hope is fine, but it doesn’t pay the bills.

 

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About Michael Dorstewitz

Mike has been with BizPac Review almost from the beginning. Follow him on Twitter at @MikeBPR.

  • Patriot1742

    And they are going to ask the bank to take .10 on a dollar because they cannot pay it back – RIGHT.

  • Rex

    Democrats don't care about debt. Spend, spend, spend !!!!