The Obama campaign’s monthly FEC report for October has revealed that Obama for America took out a $15 million loan from Bank of America back in September. Due to be paid back on November 14– just eight days after the election– the report says the campaign will be paying a 2.5% interest rate plus the current Libor rate.
Many are asking why the first campaign that pledged to raise a billion dollars needs a last-minute $15 million loan, but Twitter users appear content to draw similarities between the campaign, and the presidency.
“[President Obama] seems to accumulate debt with everything he touches,” one Twitter user wrote. Others jokingly said they were “shocked” that a president who oversaw the downgrade of the U.S. credit rating couldn’t oversee a campaign budget.
While it is far from unusual for campaigns to take out loans, Washington Free Beacon notes that Bank of America and the Obama administration have a number of ties:
Warren Buffett, Obama donor and namesake of the infamous “Buffett Rule,” invested $5 billion in Bank of America last year in an effort to help the ailing financial institution. Last month, two weeks after OFA took out the loan, Bank of America announced a plan that would lay off 16,000 workers by the end of the year.
…The bank contributed $20 million toward the cost of the Democrat National Convention earlier this year. Bank of America stadium, home to the Carolina Panthers, was supposed to host Obama’s acceptance speech. At the last moment, the campaign switched to a significantly smaller venue [citing weather concerns]… [Emphasis added]
Moreover, as with any loan, the question is always whether or not it can be repaid. Politico relates the current financial situation for each campaign:
Together, the Romney campaign and the RNC boasted about $146 million cash on hand going into October, with the RNC accounting for about $82.6 million of it, federal filings show.
The DNC reported a comparatively paltry $4.6 million in the bank and $20.5 million in debt. Obama for America reported having nearly $100 million as of Sept. 30.
This post has been updated.
(H/T: Washington Free Beacon)