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Howard Dean to Ask if McCain Is Breaking Campaign Finance Law

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February 24, 2008 4:34 PM

ABC News' Tahman Bradley Reports: Democratic National Committee chairman Howard Dean announced Sunday that his organization will file a complaint on Monday with the Federal Election Commission, asking them to investigate whether Arizona Republican Sen. John McCain is breaking the law by reversing his decision to use public funding for his presidential campaign.

"John McCain cannot unilaterally withdraw from his spending limit," said Dean on a conference call with reporters. "He cannot be let out of the matching funds program if he's already used the promise of matching funds for loans or collateral for private loans."

McCain announced earlier this month that he will not accept public campaign financing for the primary election -- freeing him to spend as much as he needs through September.

If McCain opts into the public system, or is forced by the FEC to do so, he would be bound by a $50 million overall spending cap and individual state limits. Democratic Sens. Barack Obama of Illinois and Hillary Clinton of New York have opted out of public financing and would be free to spend as much as they want through the spring and summer before the party conventions. Obama, it should be noted, has said he would consider using public financing in the general election if the Republican nominee agrees to do the same. 

McCain's FEC financial report, Dean claims, shows he's used the promise of federal money for private loans. Questions about McCain's use of the promise of public money was first raised on Thursday in a letter from the FEC to McCain. The commission called on the campaign to explain an agreement it entered into with Fidelity Bank and Trust Bank of Bethesda. 

Dean accused McCain of breaking the very campaign finance law he championed in the U.S. Senate. "He has made a career out of posing as a reformer. And the truth is that his reforms that he's proposed are for everybody but him."

McCain spokesman Brian Rogers responded to the DNC's press conference by pointing to Dean's own actions when he ran for president in 2003. "Howard Dean’s hypocrisy is breathtaking given that in 2003 he withdrew from the matching funds system in exactly the same way that John McCain is doing today."

Dean committed to taking matching funds in 2003, saying he would attack any rival who skipped out of public financing.  He later applied for public money.

The Republican National Committee issued a statement on Sunday saying that Dean has no credibility on fundrasing issues, not only because he reversed courses on his public funding pledge during his own presidential campaign but also because the RNC has been outpacing the DNC in fundraising.

"At the start of this month, the RNC had a 7-to-1 cash-on-hand advantage over the DNC. Dean’s misguided attacks in no way excuse Obama's vacillations on his pledge to the American people. At this rate, Obama and Dean will soon be as trustworthy as Sen. Clinton. Considering Dean and Obama’s left-wing positions on health care, taxes and national security, it's no surprise they’re relegated to making these sorts of misguided attacks," said RNC spokesman Alex Conant.

February 24, 2008 | Permalink | User Comments (62)

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McCain=Viki the lobbiest, McCain=wars, McCain=financial reform but not for me, etc. the straight talk bus lost wheels and its engine.

Posted by: BKMC | Feb 24, 2008 4:14:09 PM

It's weird that so far Republican voters simply won't have it true that McCain is already in big trouble on various fronts of his campaign.

Lobbyist adviser Mr. Black gave Obama a big stick to hit him till November; we can sure that more sticks will be provided by former lobbyist 'friends' who were kicked from McCain's wagon and by some investigate journalists from The Washington Post and the NYT. Newsweek and Huffington Post as well, they're far from done with McCain.

The worst and most direct trouble however is on the financial side. No way McCain will be able to compete with Obama's financial army of a million contributors; McCains messages will simply drown in a sea of Democrat TV ads, flyers and telephone calls.

Posted by: Greg | Feb 24, 2008 4:17:51 PM

Vietnam Vets against McCain will do him him before summer.......

Posted by: arthall33 | Feb 24, 2008 4:37:40 PM

Give it a rest peoples... you're preaching only to your choir. McCain will win the Presidency and there is nothing you can do about it. You just don't know that yet.

Posted by: Interested Litigant | Feb 24, 2008 4:37:50 PM

Aside from Howard Dean credibility:.....
What kind of stupid argument is that he has used the public funds as collateral for other loans ?
1) In first place, if he did given the AVAILABILITY of these funds as collateral, this would have meant that he could not spent them

2) Obviously, if he renounce now to draw
these public funds, the creditors where
such collateral was used will ask him for another collateral and he will (must) provide them and surly this is already agreed.

So, this seems to be a non issue, unless somebody can tell me otherwise.

The REAL problem is that the FEC must approve the withdrawal and there is the problem of the unrelated Congress nominations.
Of course, this will be solved

TOM

Posted by: TOM WITTMANN | Feb 24, 2008 4:43:36 PM

You sure don't need to have the FEC look for from home Mr. Dean at Hillary's finances. What did she receive from Norman Hsu? - $4600 for Hillary for President; $8400 for Friends of Hillary; $10,000 to HillPac. My...my...ain't the pot callin the kettle black again?

Posted by: Alan | Feb 24, 2008 4:52:15 PM

I love how you morons argue about which party is worse and defend 'your' party no matter what it does. If you had an ounce of brains you would realize that both parties are useless and start voting for someone like Ralph Nader who actually has a record of integrity and working for the interests of all Americans. You deserve crooked representation. But, you doom the rest of us too.

Posted by: Tor | Feb 24, 2008 5:04:44 PM

Democrats would do well to remember that Madman Dean helped them lose the 2004 election. We haven't heard much from Howard Dean lately, and it's been very nice! Howard, sit down and shut up! We liked you much better when you were standing in the shadows with your mouth shut.

Posted by: rmberryman | Feb 24, 2008 5:12:47 PM

This is Grand Kabuki - Howard EEEEYAAAAA Dean knows that there are only 2 FEC Commissioners so there can be no investigation, whatsoever, until a senatorial hold over the appointments is lifted. Until then there can be NO quorum, NO investigation, and NO decision on whether McCain can withdraw from matching funds. The senator placing the hold, by the way, is Barack Obama. But to be fair... Crazy Train Dean is doing his job - throwing as much sand and blowing as much smoke as he can. Obama on the other hand needs to release that hold... unless he is thinking of attempting some irregularities himself without the oversight of an established FEC. Hmmm - I wonder?

Posted by: smartprimate | Feb 24, 2008 5:18:47 PM

Somebody needs to tell that little creep Dean to take a hike. The jerk has done nothing but bad mouth his boss and his friends since the Nixon administration. I would bet that a little digging into his past dealings would shut him up.

Posted by: rplat | Feb 24, 2008 5:20:46 PM

Liberal ABC News pulling a story from the mud. Ask a question and put a picture of the candidate in thought. There is a story, at least for those without much deductive reasoning.

Posted by: Benjamin | Feb 24, 2008 5:21:22 PM

never has an american presidential election been so important to the world.Not only because this madman bush should go but more so to restore the dammage done by this man and the bad immage he has created,for many years to come,of the u s around this entire planet.Most people in europe know that americans in general are friendly and nice but over the years we have grown to forget because of walkers horrible behaviour.So,from amsterdam(in my best english)please vote democratic this time.Most of us don't know enough of your elections and how they work exactly but my family and neighbours and friends all hope for president Obama and vice-president clinton...

Posted by: wishfull thinking | Feb 24, 2008 5:23:52 PM

This is even better than TV. McCain is accused of violating campaign finance law when he wrote that disasterous McCain-Feingold bill. McCain is finding out that the proper respect he has had in the past don't mean squat now. He's finding out that when the media loved him, it was only because he was a maverick. Now that he's securing the nomination, the love fest has ended. I hope this man has learned his lesson.

Posted by: Voter | Feb 24, 2008 5:23:55 PM

The FEC should also investigate Hillary and the connections with the so called friends organizing teh $10MM 527 fund and commericals. They would appear to endorse a particular canddiate versus an issue.

Posted by: scott jeffries | Feb 24, 2008 5:26:18 PM

Howard Dean was one of the individuals that led me to leave the Democratic party in 2004.

Essentially this is close to what Howard Dean did in 2003. McCain has the option to (more or less) have his actions certified by the FEC. However, the FEC is tied up since it have a vacancy of 4 out of the required six commissioners. The reason for these vacancies it because Democratic congress members have block the White House appointees to these positions.

This action by Howard Dean and the DNC makes me glad that Ralph Nader has decided to run for president.

Posted by: Thunderbolt | Feb 24, 2008 5:30:38 PM

@wishfull thinking.
This was my aunt playing with my computer but we all agree though.Have a nice day

Posted by: joost | Feb 24, 2008 5:37:09 PM

McCain is the ghost of Christmas Past instead of running for president he should be auditioning for grumpier old men #5

Posted by: mel | Feb 24, 2008 5:37:35 PM

Lets face reality Republicans... John McCain is a screw-up.

If you nominated Romney, the matchup would be a governor with a long list of accomplishments in the private and public sector vs. a half term senator with rhetorical skills.

Instead, you have a 71 year old man, who contradicts himself on the record often.

He wants to opt-out of a system that he created!!! How ridiculous is this man?

He blasted the NYT story, but after 3 days his denial is starting to unravel!
He's holier-than-thou on lobbyist, but surrounded by lobbyist!
He actually WAS against the Bush tax-cut, before he was for it!

Hell, he can't even attack Obama's teenage drug use... Considering his wife was under surveillance from the DEA!!

His temper and lack of disipline will eventually catch up to him in this cycle.

Posted by: truth-2-power | Feb 24, 2008 5:48:40 PM

To prepare for the next stage of the U.S. presidential campaign, try this thought experiment: Imagine the television footage of Barack Obama's first trip abroad as president -- the crowds in the streets of Moscow, Cairo, Nairobi, Shanghai, Paris, Islamabad.

Now try to imagine the first visit by President John McCain to those same cities. McCain is a great man, and he would be welcomed with respect, deference, perhaps a bit of fear.
Obama would generate different and more intense reactions -- surprise and uncertainty, to be sure, but also idealism and hope.

Now tell me which image would foster a stronger and safer America in the 21st century.

Posted by: John Mason | Feb 24, 2008 5:52:23 PM

Obama in Islamabad would probably result in riots.

Posted by: Thunderbolt | Feb 24, 2008 5:55:22 PM

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