FEC to Examine McCain Loan

T.W. Farnam reports on the presidential race. At its meeting next week, the Federal Election Commission will address the controversy surrounding a loan to John McCain ’s campaign that may have used public money as collateral. If the FEC follows a staff legal analysis, the matter could be put to rest. Last summer, McCain joined the public matching funds program, which uses money from the Treasury to match contributions below a certain amount; the goal is to reduce the influence of big donors. Once McCain secured the nomination, however, he sought to withdraw from the program so that he would not be subject to its spending caps. The question of the loan arose when the FEC sent a letter informing McCain that he would need approval to drop out of the program – something that was then impossible because the commission didn’t have a quorum to act. The Democratic National Committee sued the FEC in court, attempting to force it to investigate the campaign. McCain was likely to face fines and ... (link)