Blogs For Victory

Another Democrat getting preferential treatment on a loan:

Senator Kent Conrad said he was given preferential treatment on a mortgage from Countrywide Financial Corp. and will write a $10,500 check to charity.

“It appears Countrywide waived one point on my mortgage,” Conrad, a North Dakota Democrat, said in a statement today in Washington. “Although I did not ask for or know that I was receiving a discount, and even though I was offered a competitive loan from another lender, I do not want to have received preferential treatment.”

Conrad said he also received a loan from Countrywide on an eight-unit apartment building in Bismarck, North Dakota, even though the lender typically serves properties that have four units or less. He said he had decided to refinance that loan with another institution.

Conrad and Senator Christopher Dodd, who oversees the U.S. mortgage industry as chairman of the Senate Banking Committee, were among those who received loans through Countrywide’s “V.I.P.” program, which waived points, fees and borrowing rules for prominent people, Portfolio magazine reported June 12. Dodd has denied receiving preferential treatment.

“He never expected, asked for or was aware of any special treatment,” Conrad’s spokesman, Chris Thorne, said. “He is paying this to make absolutely clear he will not partake in any preferential treatment.”

As there is more than one way to skin a cat, there is more than one way to bribe a politician. The fact that there is such a thing as a VIP program is disturbing enough (full disclosure: the very large financial institution I work for has one, too, and it annoys me no end, though I’ve never noted a politician in the mix, but I’m also not nearly privy to the full scope of the program), but to see an elected official not making 100% certain that he doesn’t benefit from such a program gets any “clean government” advocate rather upset.

You see, the problem here is that its too large an opening for outright corruption – we don’t know if Conrad was actually being bribed, but the plain fact of the matter is that such a thing can very easily become a bribe. Like this – one of the things Matt and I discovered in writing Caucus of Corruption is that while a politician can’t use political donations to enrich himself, he can put his wife on the campaign payroll and pay her (and, therefor, himself) a hefty paycheck out of donated funds…and more than once Matt and I found that the politician doing this sort of thing had no or token opposition to his re-election bid (meaning he was taking in vast amounts of money for no actual purpose, and shovelling it over to his wife for alleged work on a nearly un-necessary re-election effort). Very easy for Countrywide – or any bank – to turn special treatment of a loan into a bribe; “ok, Senator, you vote the way we want and we’ll ensure that you get a very low cost loan to buy that property you have your eye one” – the savings in such a transaction could amount to hundreds of thousands of dollars, more than enough to get a corrupt pol to do one’s bidding.

And, once again, this brings me back to the theme of Caucus – that unless and until Democrats start holding their own side accountable for corruption, this sort of shady practice will continue unabated. Conrad might be squeeky clean, but does anyone want to bet me that a program like Countrywide’s VIP program has never been misused? Back in 2004, Democrats were urging any Republican even remotely connected to shady practices be forced out of office…I won’t hold my breath waiting for Democrats to start demanding the same level of accountability for their side.