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Hillary's $7.5 Million Problem
November 20, 2008 8:31 PM
ABC News' Tahman Bradley Reports: Hillary Clinton continues to carry $7.5 million of debt owed to vendors from her failed presidential bid which ended in early June, her campaign finance report covering the month of October shows.
Even though the election is over, Clinton can continue to raise money for unpaid bills, as long as contributors clearly designate their contributions as being specially for retiring presidential campaign debt. There's no time limit on how long a candidate can carry debt.
The campaign retired a few hundred thousands dollars of debt in October after bringing in $774,299 last month.
Clinton lost all opportunities to get back the $13.1 million in personal money she loaned the campaign. Campaign finance law restricts the amount of time a candidate can pay back personal loans in an effort to limit candidates from self-financing campaigns. Clinton needed to pay herself back by the final day of the Democratic convention.
If Clinton accepts the position of Secretary of State, or some other post in the Obama administration, she would be barred by The Hatch Act of 1939 from soliciting and receiving political contributions. The Clinton campaign organization, however, can continue to raise money for the purpose of retiring debt even if the senator accepts an appointed position in government. Raising a small amount of money from loyal donors without help from Clinton might be doable, but raising $7.5 million without the candidate seems like a tall order.
Campaign finance law is pretty flexible in a candidate's ability to retire debt after a presidential election is over and a little innovative campaign treasury maneuvering could yield a faster way for Clinton to erase most of the remaining debt. On August 28, Clinton's Senate account received $6.4 million in contributions that were first designated for the presidential campaign for use in the general election. That money could theoretically be transferred back to the presidential campaign and used to knock out vendor debt.
The Clinton presidential campaign this week was still hunting for help with unpaid bills, sending supporters an e-mail asking for money.
November 20, 2008 | Permalink | User Comments (69)
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I am in debt too. So what. Pay your bills Clinton.
Posted by: Sara | Nov 20, 2008 10:33:04 PM
NObama raised a record amount of money. Let the "messiah" contribute. She ain't getting a single penny from me.
Posted by: MyFellowAmericans | Nov 20, 2008 10:33:22 PM
Maybe she should ask for a government bailout. har har!
Posted by: Jason | Nov 20, 2008 10:35:57 PM
Hey LeeLee,
Once again I have to agree with your perspective. Obama has yet to prove anything, the least he could do is keep his word to Hillary, or basically he's word is worth nothing. That's pretty much the best we can expect from him based on his actions so far, nothing.
Posted by: WestCoastMessenger | Nov 20, 2008 10:36:28 PM
Let Obama give Hillary her 10 million back - he did not keep his part of the deal, so he should give it back.
You can hate on Hillary all you want, but one thing is for sure, during this election, Hillary WAS a "true" Democrat and she showed it by campaigning her heart out for Obama.
You can ignore that fact if you want and make all the smart remarks you want, no biggie.
Obama should not have to rely on his Supporters excuses for him or their distraction attacks on Hillary to cover up for his inaction and dishonesty.
The one fact that is indisputable in this matter is that Obama should be man enough and honorable enough to keep his given word.
Posted by: leelee.again | Nov 20, 2008 10:48:46 PM
Mrs. Clinton incurred the debt. It is her personal responsibility to repay it. Just like every other citizen.
In regards to the country's financial crisis. Business are being force to reduce operating expenses and even cut salaries. Maybe our elected representative should lead by example and cut their pay and operating expenses by %60 or better and put those funds back into the economy? Naa it will never happen.
Posted by: Average American | Nov 20, 2008 10:54:47 PM
WestCoastMessenger - Wow, it's been a while!
Looks like we might want to hang on - the next 4 years are going to be a real bumpy ride!
Posted by: leelee.again | Nov 20, 2008 10:56:00 PM
Average American - I agree with your second paragraph.
However, I stand by the fact that Obama should pay up for services rendered.
Posted by: leelee.again | Nov 20, 2008 10:59:36 PM
In regards to President elect Obama. He is not America's first black president. He is America's first mulatto president"
"a person whose ancestry is a mixture of Negro and Caucasian" dictionary.com.
Why has little attention been paid to his "white" side? If racial issues tend to dived people, Why is so much attention given to the President Elects race? What the country needs is a leader of unprecedented honesty, integrity, humility and well in-tune with the working man.
Posted by: Average American | Nov 20, 2008 11:04:45 PM
Others running in the election quit when they ran out of money. Not Clinton, she stayed in knowing she wasn't going to pay or maybe thinking Richard Melon Scaiffe would pull her out. WHY else did she go to him? If she had 18,000,000 that she say's voted for her, why didn't they support her with money, IF they wanted her to stay in? Matter of fact if those 18,000,000 sent her ONE dollar now, she would be out of debt, plus have some left over. What happened to her P.U.M.A supporters? (Put UP Money Are) shut up. Couldn't they have done a fund raising for her? This is rediculous. They sound like beggers.They sure didn't manage their finances well. AS many big problems that we are having after the last eight years what happened? All of the big CEO's that got the tax breaks are the ones that are broke and begging us for help? And are they the first ones to help the ones that really need it? No, they call that a bleeding heart liberal. Now they aren't ashamed to ask them for "help?" Just where is it going?
Posted by: Aly | Nov 21, 2008 12:51:24 AM
Hillary supporters should understand that many of Obama's supporters did contribute to Hillary's debt retirement. Unfortunately, there have been many financial needs for the Party that have been crucially important. I've donated many times to Obama,the DSCC and the DCCC as well as to individual campaigns that were important around the country such as the Senate races in Minnesota and Georgia. I have also donated to Mrs. Clinton several times, but not in the amounts I might have if the needs of the general election were less. I'm a single nurse. I've never donated to any political campaign before this year and I didn't do it just because I thought Obama was a great candidate (though he is). I did it because I had become very, very worried about what was happening to my country. I've sacrificed and done without a lot of things to be able to do this. I'm not the only one. It would be nice if once in a while a few of Hillary's supporters would recognize that we did the best we could for her while simultaneously fighting a hard fought general election. I'm tapped out and tired. If there are those who have sacrificed less over the past year or two, it would really be nice if some of you could step up to the bat and take a turn. Obama had 3 million people who donated, but there are 300 million Americans. Some of the other 99% of the country might like to hold up the tent for a little while and let the weary warriors rest a bit. Thanks
p.s. I'm not even a Democrat, but I'm glad I helped.
Posted by: karela | Nov 21, 2008 4:03:27 AM
When you read these comments you have no idea about the motives of the person talking.
"Let Obama give Hillary her 10 million back - he did not keep his part of the deal, so he should give it back."
Wow, you might say that Obama is a mean man or you might say the person who posted that is a lying partisan hack who cares nothing for facts. Facts like the fact that Obama can not donate more than anyone else can to another candidates campaign.
Posted by: one thing | Nov 21, 2008 4:08:12 AM
People are losing jobs and holding back on buying christmas presents. writing a check to a rich politician (clintons made 100 mil in 8 years) is the last thing i would do.
Posted by: Kumar | Nov 21, 2008 4:29:50 AM
Once again, (still) the Clintons are thumbing their noses at playing by the rules and daring someone to make them do the right thing and pay the vendors who extended credit to her campaign. They need to be GONE.
Posted by: james | Nov 21, 2008 6:53:24 AM
Why don't the Clintons just pay it themselve's" Who cares. They will still be eating lobster for brunch. Still fly anywhere in the world on a whim. Still have armed guards on hand protected them. Still have more money than they can shake a stick at. Still leave plenty of money when they die to their daughter. Please stop begging for money. Pay it off. Bill can do a few lectures and make it all back. Quit asking the poor and middle class for money. How disgusting.
Posted by: Jerry in Northern CA | Nov 21, 2008 8:32:52 AM
When Bill and Hillary first ran I voted for them. I really didn't have that much of a choice. Deep inside there was a sneaky element to the Clintons. Sorry, but I just don't trust either of them. Yes, they campaigned for Obama and believe me, it wasn't because they had any love or respect for PE Obama. They had to unite the party. It was to their interest. To be honest, I can understand that. But, I don't feel sorry for the Clintons. By the way, I contributed a little money to Hillary's campaign to retire her debt because PE Obama wanted his supporters to do so.
I don't dislike the Clintons, I just don't trust them.
Posted by: Carol | Nov 21, 2008 9:44:11 AM
Bill Richardson is much more qualified to be Sec'y of State than Hillary "Tuzla Dash" Clinton.
Posted by: Clintonista | Nov 21, 2008 10:16:15 AM
Most of the money is owed to Mark Penn, the Clinton campaign chief strategist who is responsible for advising her to throw the kitchen sink at Barack Obama after it was clear that she could not win enough delegates to get the nomination.
That's why the small donors who gave PE Obama his campaign funds do not want to pay Mark Penn's bill. Barack will need all of us small donors in 2010 and we are not likely to want a dime of our hard earned dollars going to pay Penn.
If Barack had lost, Hillary would not be asked to pay David Axelrod's bill. Instead, the Obama nation would have gladly retired the campaign debt even if we had to send $5 every month.
Posted by: Michaele | Nov 21, 2008 1:49:47 PM
I really don't understand this at all. I think it's more than Hillary needing $7.5 million dollars. Are they, (the Clintons) BROKE? I received a letter from Hillary asking to help after she had lost and chipped in. How rediculous on my part. Don't you think a lot of people did? And they still need $7.5 million? $7.5 million dollars and she can't get it from her supporters? BTW, why does she need that? Is she losing her home or what? This is crazy!
Posted by: Aly | Nov 21, 2008 2:07:38 PM
I for one will continue to contribute to the first women to take on that glass wall of moving women on in this country.
If you do not look at MSBNC and CNN to tell you what you think and think for yourselves, 7.5 is a small price to pay
Posted by: alorick | Nov 21, 2008 2:47:32 PM
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