Before handouts, big firms bankrolled conventions
By PETE YOST
Associated Press
December 11, 2008
Page 2 of 2
Some donors got their checks in early, like AIG, which sent its check for $750,000 for the Republican convention over a year ago. Others gave early and late, like Morgan Stanley, which sent $100,000 to the Democrats in April, and another $50,000 on Sept. 10.
The corporate donors also include Freddie Mac, the financially stricken mortgage housing giant which the government took over in September along with its sister company, Fannie Mae. Freddie Mac gave $250,000 for each convention a year ago. The company is asking for an injection of $13.8 billion in government aid after posting a huge quarterly loss.
The Federal Election Commission has continued to allow large contributions to flow to local committees set up to host the political conventions, and those host committees promise donors special access to each party's top leaders.
Sheila Krumholz, executive director of the Center for Responsive Politics, said that by taking advantage of a false distinction between a political party and the committees hosting the conventions, labor unions were able to support the Democratic Party in a way that hasn't been allowed since the days of soft money, when labor was among the biggest contributors.
The Laborers' International Union provided $1.6 million for the Democratic convention, and the Service Employees International Union gave $1.35 million.
Among the biggest convention contributors, two retailers and a telecom company split their donations while giving mostly to the GOP: Target spent $3 million on the Republican convention, $400,000 on the Democratic; Qwest spent $2.9 million to support Republicans, $841,000 for the Democrats, and Best Buy gave $2.3 million to the Republican convention, $299,000 to support the Democrats.
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