Category: Politics

  • John McCain has a long, complicated relationship with gambling interests

    In a lengthy piece today, The New York Times details John McCain’s extensive connections to the casino industry and Indian gaming.

    As a member and former chairman of the Senate Indian Affairs Committee, it’s not surprising that McCain would have many supporters in industry.

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    Yet in 2008, both Barack Obama and Hillary Rodham Clinton rank higher in campaign donations from Indian gaming organizations. According to an analysis by the Center for Responsive Politics, Clinton ranks second among congressional recipients (after Bill Richardson), with contributions totaling $82,375. Obama ranks 12th, with $56,100.

    McCain isn’t on the list of top 20 recipients, having received $5,000.

    The center’s analysis found that Indian tribes and the National Indian Gaming Association, the tribes’ chief lobbying group, have given $7.3 million this year to federal candidates and their parties.

    The gambling industry as a whole has contributed $12.7 million. Giving in the larger sector has been led by MGM Mirage, whose chairman, J. Terrence Lanni, is a close friend of McCain and a bundler for his campaign. Lanni has raised more than $500,000 for McCain’s presidential bid this year.

    After co-authoring the Indian gambling act and helping to fashion much of the legislation governing the gaming industry, McCain appears to distanced himself from the tribal casinos. In 2000, he was the top congressional recipient of their donations, taking in $39,400. This year, he has accepted $5,000.

    As the Times reports, McCain stopped taking tribal donations after the scandal surrounding Jack Abramoff and his lobbying activities for Indian tribes.

    However, less overt connections continue. The Times notes: “In his current campaign, more than 40 fund-raisers and top advisers have lobbied or worked for an array of gambling interests – including tribal and Las Vegas casinos, lottery companies and online poker purveyors.”

    Campaign staffers told the Times that McCain was “justifiably proud” of his record on Indian gaming.

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  • McCain adviser Nancy Pfotenhauer learned ropes as lobbyist, crusader

    Her short, blonde hair is perfectly coiffed; she smiles beatifically through Chris Matthews’ tirades and wields John McCain’s latest talking points like a sword in battle.

    Nancy Miller Pfotenhauer, senior adviser to GOP presidential nominee John McCain, has prepared for this role for 20 years.

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    She honed her skills as a conservative poster-girl by working her way up through the trenches of GOP politics, conservative think tanks and private industry – apprenticing herself as a young, graduate student to conservative economic star Walter E. Williams at George Mason University, working for the Republican National Committee, and then learning political hardball as in-house lobbyist for Koch Industries, the world’s largest private company run by conservative mogul Charles G. Koch.

    Some have suggested that the McCain campaign has put her out front to make the Republican ticket seem more female-friendly – a strategy that may also be reflected in the White House’s choice of Dana Perino as spokeswoman.

    Pfotenhauer, however, is no Sally-come-lately to the GOP; her connections to the politically active Koch brothers, in particular, go back two decades.

    After graduating from the University of Georgia, she got a masters degree in economics at George Mason University, a major beneficiary of Koch family largesse. (No coincidence that Richard H. Fink, executive vice president of Koch Industries, is a member of the board of visitors of George Mason, and also president and director of two of the family’s charities – the Claude R. Lambe Charitable Foundation and of the Charles G. Koch Charitable Foundation.)

    One of her mentors at George Mason was Williams – a darling of the conservative movement who appears as a substitute host on “The Rush Limbaugh Show,” and sits on boards of Koch-funded think tanks such as the Cato Institute.

    She got her first job in Washington as a senior economist at the Republican National Committee in 1987, and was promoted to chief economist in 1988.

    Leveraging her association with Williams, at age 24, she won a spot on the transition team for then-incoming President George H.W. Bush, according to a story in Daily Kos, where she advised on appointments to both the Federal Trade Commission and the Interstate Commerce Commission.

    For the next two years, she worked as economic counsel to then-Sen. William Armstrong, a member of the Republican leadership who served on both the Finance and Budget Committees. In 1990, she was appointed chief economist of the President’s Council on Competitiveness, where she worked with Dan Quayle, among others.

    Soon thereafter, she moved to the Washington office of Koch industries, becoming the company’s chief in-house lobbyist.

    “At Koch, Pfotenhauer experienced first-hand the legislative and regulatory labyrinth that faces American companies and ultimately has an impact on consumers,” according to her own profile.

    Gas pipelines were a major issue during her tenure there. In early 2000, Koch Industries agreed to a landmark $30 million civil settlement with the federal government, in an effort to resolve claims related to more than 300 oil spills from its pipelines and oil facilities in six states.

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    In 2001, Pfotenhauer left Koch Industries to become president of the Independent Women’s Forum, a conservative research group that also received funding from Koch foundations.

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    Founded by Rosalie (Ricky) Gaull Silberman in 1992, the women’s forum grew out of “Women for Judge Thomas,” which was created to defend Clarence Thomas against allegations of sexual harassment and other improprieties during his confirmation hearings for the U.S. Supreme Court.

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    The group has been described as “a virtual Who’s Who of Washington’s Republican establishment” – besides Silberman, its directors emerita include Wendy Lee Gramm, Lynne Cheney and Midge Decter.

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    Its stated goals are to build support for “a greater respect for limited government, equality under the law, property rights, free markets, strong families, and a powerful and effective national defense and foreign policy,” according to its website.

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    The liberal-leaning People for the American Way, which is critical of the organization, describes it as “a secular counterpart to Religious Right women’s groups like Eagle Forum and Concerned Women for America….”

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    It was through the women’s forum that Photenhauer was appointed by then-Attorney General John Ashcroft to join the National Advisory Committee on Violence Against Women in 2002 – though her group had vigorously opposed the law the committee was supposed to oversee.

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    The appointments infuriated feminist groups, according to a Washington Post column by Dana Milbank:

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    “I’m appalled but I’m not shocked,” said Kim Gandy, president of the National Organization for Women. She said the IWF “makes light of violence against women on a regular basis.”

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    Pfotenhauer said in an interview yesterday that her purpose was “not at all” to undo the law but to give states more flexibility in implementing it.

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    “You have to look at domestic violence as a culture of intimacy,” she said, rather than a “one-size-fits-all, men-beat-up-women” framework.

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    Pfotenhauer said it was the first time her organization has been invited to join the committee. “I’d hope we’ve been asked to participate in this because we have a different view but one that’s constructive,” she said.

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    In October 2003, the women’s forum announced an affiliation with Citizens for a Sound Economy, now Americans For Prosperity – also Koch-funded groups – with which it shared staff and premises for several years. For a while Pfotenhauer was also president of Americans for Prosperity and executive vice president for Citizens for a Sound Economy.

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    Pfotenhauer left those groups last year to become an adviser to John McCain’s presidential campaign.

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    She is married to Kurt Pfotenhauer, a former top lobbyist for the Mortgage Bankers Association who now heads the American Land Title Association.

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  • Anti-Obama ads target blue-collar workers in Macomb County, MI

    The swift boats are sailing again.

    But as The New York Times reported yesterday, they may be traveling on smaller waters.

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    Some negative television ads sponsored by political action groups aren’t trying to reach national audiences, reporter Jim Rutenberg writes.

    Rather, they’re running in small, targeted markets in battleground states in the belief that a small swing in voter preference can affect the outcome of this year’s presidential race.

    This is especially clear in Michigan, a state that’s up for grabs.

    Freedom’s Defense Fund, a conservative political-action group not connected to the campaign of Republican Sen. John McCain, has launched a series of ads attacking Sen. Barack Obama, the Democratic presidential candidate.

    The ads are appearing on cable stations in Macomb County, an area northeast of Detroit, and are targeted at “white, unionized auto workers,” the Times reports.

    The two ads that have aired show Obama with controversial “friends,” his former minister, the Rev. Jeremiah A. Wright Jr., and the former mayor of Detroit, Kwame M. Kilpatrick.

    The fact that the ads place Obama, an African-American, with two figures who are also African-American, has led Democrats to charge that the Freedom’s Defense Fund is attempting to exploit racial attitudes. Officials of the fund deny this charge.

    While the fund may have changed some of its tactics for this campaign, a review of the group’s funding and staffing reveals some familiar players.

    Billionaire Roger Milliken has contributed at least $15,000 to the fund since it started in 2004.

    Ninety-one-years old, Milliken is the CEO and chairman of Milliken & Company, a South Carolina textile and chemical manufacturing concern.

    He has given tens of thousands of dollars to conservative political candidates and groups over the years.

    A long-time opponent of free trade and illegal immigration, Milliken this year backed California Congressman Duncan Hunter’s unsuccessful campaign for the Republican presidential nomination.

    He also contributed to the campaigns of congressmen Ron Paul and Tom Tancredo.

    In 1996, Milliken served as an adviser to the presidential campaign of Pat Buchanan. The campaign treasurer was Scott B. Mackenzie, who had earlier worked on the presidential campaigns of Ronald Reagan.

    The two men are now linked at the Freedom’s Defense Fund, Milliken as contributor and Mackenzie as treasurer.

    Mackenzie also serves as the treasurer of the Black Republican Freedom Fund, another PAC.

    And he’s listed as a staff member at BMW Direct Inc., a fund-raising consultant for conservative candidates and groups.

    Michael Centanni, the chief operating officer of BMW Direct, is the chairman of Freedom’s Defense Fund.

    The Times reports that subsequent advertisements by the fund will link Obama to Antoin Rezko, a Chicago real estate developer convicted on bribery charges; William Ayers, the former Weather Underground member; and Raila Odinga, the Kenyan prime minister.

    Jerome S. Corsi, author of the anti-Obama biography Obama Nation is a paid consultant for the Freedom’s Defense Fund.

  • Silver State bank fails; John McCain’s son had been director

    It looks like Andrew McCain got out just in the nick of time.

    McCain 46, the son of GOP presidential nominee John McCain, resigned as a director of troubled Silver State Bank and its parent company, Silver State Bancorp, on July 26, citing “personal reasons” – just five weeks before regulators shut down the federally-insured bank.

    Regulators announced Friday that they had seized the Nevada bank and sold it, blaming its failure on soured loans in commercial real estate and land development, mainly in Los Vegas.

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    Andrew McCain had served on the company’s three-person auditing committee since joining the board in February, 2008, but there is no indication he committed any wrongdoing, or that his father had any knowledge or involvement in the bank’s difficulties

    Still, his involvement in a failed bank is politically awkward for his father’s campaign since it conjures memories of John McCain’s role in the 1980s savings and loan scandals when he was accused of improperly aiding Charles H. Keating, Jr., chairman of the failed Lincoln Savings and Loan Association.

    After a lengthy investigation, the Senate Ethics Committee cleared John McCain of impropriety, but chastised him for exercising poor judgment in helping Keating. Three other senators – Alan Cranston, Dennis DeConcini, and Donald Riegle – were found to have improperly interfered with a federal investigation.

    In Andrew McCain’s case, he had been appointed to the boards of Silver State and its holding company in February, and resigned five months later. Silver State issued a July 26 press release announcing his immediate resignation for “personal reasons.”

    Only a week afterward, the company announced a $62.7 million net loss for the second quarter of the year – along with the resignations of its CEO and chairman, Corey Johnson and Bryan Norby, both of whom had co-founded the bank in 1996.

    The bank said in a subsequent regulatory filing that its second-quarter net loss was actually more than $10 million higher than what it had originally announced. It also said in the filing that its worsening financial condition meant there is “uncertainty about the company’s ability to continue as a going concern.”

    The holding company has 13 bank branches in Southern Nevada and four around Phoenix.

    Silver State had $1.7 billion in deposits, according to the Las Vegas Review-Journal. Nevada State Bank is taking over the deposits insured by the Federal Deposit Insurance Corp., leaving $20 million in uninsured deposits, which may not be wholly recovered. Silver State became the 11th federally insured bank to fail in 2008.

    A Wall Street Journal story looking into Andrew McCain’s sudden exit suggested he had resigned at the urging of those who felt his position on the board could become a liability in his father’s presidential bid. The younger McCain, who is CFO of Phoenix-based Hensley & Co., the distributorship owned by his stepmother Cindy McCain, had also recently agreed to lead the Greater Phoenix Chamber of Commerce, and had concerns about balancing his responsibilities, according to the Journal .

    In any case, he was not the first to leave the beleaguered bank.

    Douglas French, then the executive vice president of commercial real estate lending, had resigned in May, also citing personal reasons. French is an associate editor of the conservative Liberty Watch magazine, which counts Bill O’Reilly and John Stossel among its contributing writers.

    The younger McCain, who is one of two sons from his father’s first marriage, had previously served as a director of Choice Bank in Scottsdale, Arizona, from 2006 to April 1, 2008, when it was acquired by Silver State Bancorp

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  • McCain’s campaign for change is fueled by same old money machine

    In accepting the GOP nomination for president last night, John McCain pledged to run as an iconoclast who will shake things up in Washington.

    His reputation as a maverick and his selection of Alaska Gov. Sarah Palin as a running mate would signal that McCain is bringing change to the Republican Party.

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    But his campaign money machine sends a different message.

    As they say in Casablanca, “Round up the usual suspects.”

    The map above shows McCain bundlers who were also major supporters of George W. Bush in 2004. Because individual contributions are capped at $2,300 for the general election, bundlers – influential people who persuade friends, family and colleagues to contribute to a campaign – play a major role in presidential politics.

    August A. Busch III
    August A. Busch III

    Robert A. Mosbacher, former Commerce secretary and a friend of George H.W. Bush, is a bundler as well as general chairman of the campaign.

    Other heavy hitters include:

    The McCain campaign has released a list of bundlers who have raised $50,000 or more. Of the 450 names listed, 63 have raised at least $500,000.

    Related story: GOP donor Robert Wood Johnson gets royal reception at convention

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