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Feds Taking Closer Look at McCain Loan

Could lock him into matching funds— and $54M limit

By Kevin Spak, Newser Staff

Posted Feb 21, 2008 12:32 PM CST

(Newser) – Today just isn’t John McCain’s day. The Federal Elections Commission says it may not allow the presumptive Republican nominee to drop out of the federal matching funds program, because he used it as collateral for a $4 million loan he took out to fund his cash-strapped primary campaign in December. If the FEC doesn't allow him to opt out, McCain will be restricted to spending just $54 million through August.

Federal law says using matching funds as collateral locks a candidate into the system; McCain tried to hedge by promising the bank he’d commit to the system only if he lost the primary—if he won, he’d forsake matching funds and repay with the tide of money he’d get. The FEC thinks that's cutting things too fine, and wants to investigate. “It was done before in another campaign,” McCain said today. “We think it’s perfectly legal.” The FEC, meanwhile, can't act until the Senate appoints two new commissioners.

Republican presidential hopeful, Sen. John McCain, R-Ariz., accompanied by his wife Cindy, speaks at a news conference in Toledo, Ohio. Thursday, Feb. 21, 2008. (AP Photo/Gerald Herbert) (Associated Press)

Republican presidential hopeful, Sen. John McCain, R-Ariz., speaks at a news conference in Toledo, Ohio, Thursday, Feb. 21, 2008. (AP Photo/Gerald Herbert) (Associated Press)

Republican presidential hopeful, Sen. John McCain, R-Ariz., accompanied by his wife Cindy, speaks at a news confernece in Toledo, Ohio. Thursday, Feb. 21, 2008. (AP Photo/Gerald Herbert) (Associated Press)

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Feds Taking Closer Look at McCain Loan

Could lock him into matching funds— and $54M limit

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McCain Backers Finding Ways Around Law He Sponsored

GOP governors fund is major finance loophole

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He also worked for tax-exempt 527 group

Saint John Still Tainted by Senate Murk

Ethics crusader is still no stranger to lobbying culture

Edwards Will Accept Public Financing

Candidate points to principle, analysts to necessity

Obama Looks to Crack Down on Secret Donations

Administration actions would replace law Congress fails to pass

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Feds Taking Closer Look at McCain Loan

Could lock him into matching funds— and $54M limit

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Barack Obama • John McCain • McCain Feingold • Campaign Finance Reform • matching funds • Federal Election Commission • McCain 2008 • David Mason • Trevor Potter

MOST POPULAR STORIES

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More Newser Stories

McCain Backers Finding Ways Around Law He Sponsored

GOP governors fund is major finance loophole

McCain Ousts Consultant Over Conflict of Interest

He also worked for tax-exempt 527 group

Saint John Still Tainted by Senate Murk

Ethics crusader is still no stranger to lobbying culture

Edwards Will Accept Public Financing

Candidate points to principle, analysts to necessity

Obama Looks to Crack Down on Secret Donations

Administration actions would replace law Congress fails to pass

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Newser By Users

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