Where Did Hillary Get $5 Million?
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James Joyner | Sunday, February 10, 2008 |
Mark Hosenball and Michael Isikoff ask and answer an interesting question: “Where did Hillary Clinton get the money for her $5 million loan to her campaign?”
Clinton, unlike rival Barack Obama, has not released her tax returns. But disclosure forms that Clinton filed with the Senate provide some clues to her family finances. They show Bill Clinton has earned tens of millions of dollars in recent years giving speeches at rates of up to $450,000 apiece. During one week in 2006, the former president collected $1.7 million for talks in Europe and South Africa. (He also collected speaking fees from Citigroup, Goldman Sachs, the Mortgage Bankers Association and other big firms.) The documents are more circumspect about other Clinton financial interests, including his annual income as a “partner” in billionaire pal Ron Burkle’s businesses and from Vinod Gupta’s InfoUSA. Both payouts are listed as “over $1,000″—a description that is legally adequate but not very enlightening. Clinton spokespeople recently said the former president is preparing to sever his dealings with Burkle and Gupta “should Senator Clinton become the Democratic nominee,” in order to avoid any conflicts. But Gupta, whose firm has paid Bill at least $3.3 million since 2003, told NEWSWEEK that he is still paying fees to him; Burkle’s spokesman could not be reached for comment.
When the Clintons left the White House, they were drowning in legal bills. But by last year, they had sufficient cash flow to pay off the mortgage on their home in Washington, D.C. According to local property records, they took out a 30-year, $1.995 million mortgage in 2001 but paid it off in full last November. (The Clintons also own a home in Chappaqua, N.Y., but there is no record of a similar mortgage payoff.) Election-law experts say that it is legal for candidates to make unlimited loans—or outright donations—to their own campaigns, as long as they do not seek public campaign subsidies. Candidates can even charge their campaigns interest, as John Kerry did in 2004. But a Clinton campaign adviser, who asked not to be identified discussing internal matters, said that fund-raisers have been told that Hillary’s loan is interest-free. Wolfson wrote that the campaign had signed a promissory note for the loan and that Clinton could forgive the debt if she wishes, though the campaign adviser said “she expects to get paid back when this is over.”
Clearly, being ex-president is more lucrative than it used to be. Half a century ago, Congress instituted pensions for former president because Harry Truman was leaving office with no visible means of support aside from a small Army pension. Now, Clinton can make more for a single speech than he did any year he was president.
Via Glenn Reynolds
About the Author: James Joyner is the publisher of Outside the Beltway and the managing editor of the Atlantic Council. He's a former Army officer, Desert Storm vet, and college professor with a PhD in political science from The University of Alabama. He lives just outside the Beltway in Alexandria, Virginia.
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And Sam Clemens darned near bankrupted himself publishing Grant's memoirs so that the impoverished ex-President might have something to live on in his declining days (it turned out to be among the best-selling memoirs ever written).
Of course until Obama showed up, it was only those evil members of the vast right wing conspiracy who might have questioned is there any quid pro quo for all of this money.
When I first saw this post I thought it was about the new Batman movie.
I am looking forward to reading your article. However, even pulling up the page, I am struck by the horrible image of Senator Clinton you have chosen to present. I am an Obama supporter, in part because I am concerned about Senator Clinton's financing. However, this photo diverts attention from this important issue with unnecessary mean spiritedness.
Thanks for reading my letter.
Peace,
Laura
I fully understand your choice of picture, James. I've been collecting every unflattering picture of John McCain I can find (it isn't difficult).
I do question the premise of your post, though. Doesn't everybody who leaves political office these days make more money out of office than they did in? I mean, look at Trent Lott and Tom DeLay... just two examples. They are both making gobs more money now than ever could have will serving in Congress.
I wonder how much Bill Frist charges to give a speech?
From China
this photo diverts attention from this important issue with unnecessary mean spiritedness.
What're you talking about? It looks like every other picture of her. If she wants a flattering picture it's going to take a magician not a photographer.
Proof that having a large budget to waste on speakers is only a blessing to the speakers. Er, unless the people hiring the speakers get political postings later on...
Dick Morris was on Dennis Miller talking about similar issues last week. I haven't had time to research it, but he also talked about Bill Clinton receive $10M per year from the Emir of Dubai as some sort of "finder's fee" for a deal he helped put together.
I read that Mr. Rommney put millions and millions of his own money into his campaign. Mrs. Clinton is making a loan to her campaign? Doesn't that say something? It makes me believe she wants other people's money for her use while not willing to give up her own.
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