Recent fundraising figures show the RNC faring better than its DNC counterpart in just about all areas. Notably, the RNC has no debt and nearly $10 Million in cash on hand. The same, however, cannot be said for the DNC, thanks in part to some clever money shuffling among kindred spirits.
In the final two months of the 2012 election cycle, the DNC was strapped for cash, and opted to take out two low interest loans totaling $15 Million.
The loans were provided by Amalgamated Bank, which uses the tagline, “America’s Labor Bank” and promises to continue “the progressive traditions of its founders as the only majority owned union bank in the United States.” [Emphasis Added]
Established in 1923, Amalgamated Bank nearly went under following the 2009 housing crisis, but was bailed out by a $100 Million investment from two billionaires (irony?). The two billionaires together received 40% ownership in the bank following their timely contributions. That stake, however, wasn’t enough to unseat the majority owner, Workers United.
Workers United is affiliated with the Service Employees International Union (SEIU), the well known 2 million member labor union.
As membership has declined of late, unions are increasingly looking to find other ways to exercise prominent influence over the political process, apart from traditional contributions. The SEIU and Workers United may have found such a way through low interest loans from their financial institution, Amalgamated Bank.
To date, the DNC has yet to pay back even half of the short-term loan, which is due in full by the end of June this year, according to the Federal Election Commission.
Of course, loans aren’t the only way unions keep the DNC afloat.
The DNC’s special relationship with the SEIU goes beyond the loans. The union is also one of the largest financial backers of the Democratic Party.The SEIU has given at least $200 million to Democratic candidates and committees since 1990. The SEIU spent over $30 million on elections in the 2012 election alone, spending about $16 million to attack Republican candidates and about $18 million to express advocacy for Democrats, according to the Center for Responsive Politics.
So, not only do a large contingent of Democrats owe their political careers to unions, their national committee also owes them more cash than they actually have on hand.
And let’s not forget the President’s words, “[the SEIU’s] agenda has been my agenda…”
When it comes to Democrats: Look for, the union label.
(Featured Image Source: YouTube)
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