Congressman made loan to bank president before getting $250k loan

[rawstory]

Congressman made personal loan to bank president shortly before bank extended him $250,000-plus loan

John Byrne

Utah congressman Chris Cannon loaned nearly $100,000 to the president of a Nebraska bank who extended at least $250,000 in credit the following year to the representative's business venture in the state, RAW STORY has found.

Cannon's office confirmed that the congressman had extended a loan of between $50,000 and $100,000 to First National Bank of Nebraska president Gary Ruse in September 1996. The following year, the Utah Republican's kosher beef-packing plant, Premium Beef, received a $250,000 to $500,000 loan from Ruse's bank.

A person familiar with the transaction asserts that Cannon's personal loan to Ruse was intended to ensure that he received a loan for his troubled beef-packing plant.

Cannon's office rejects the charge. A spokesman said that Ruse recused himself from the loan decision, and called any accusations of bribery "absurd."

MORE: http://rawstory.com/news/2005/Utah_congressman_made_personal_loan_to_0118.html

[napi21]

1. Why in the world would someone need to lend a bank Pres. $$?

What am I missing here? This Pres couldn't get and $$ from his own bank?

[LoKnLoD]

2. Cannon has ties to Abramoff also

He's a petty scumbag, as are most of Utah's reps.

[Bozita]

3. I wonder if I can get a similar deal from my local banker

Time for local media in Utah and Nebraska to step up to the plate.

[KansDem]

11. Forget the banker, contact your congressman!

"It was a loan of a personal nature," Cannon spokesman Charles Isom said of the congressman's loan to Ruse. "It's absurd to think the insinuation there being that the loan was made as a bribe."

Hmmm, I wonder if my Representative could float me a $100,000 "personal loan?" :freak:

I wonder what the "terms" were?

[Democat]

4. This sounds a lot like the Cunningham case

And look where Cunningham is now.

[Ian David]

5. The MeatGate Scandal (Wikipedia)

Cannon is on record as giving a $100,000 loan to Gary Ruse, President of First National Bank of Nebraska in 1996. A year later, the bank extended a $250,000 line of credit to Cannon's troubled Premium Beef company. The bank claims that Ruse officially recused himself from the process of approving Cannon's loan.

More:
http://en.wikipedia.org/wiki/Chris_Cannon

[UpInArms]

6. blueprint laid out by Neil Bush with Silverado Savings in the '80s

http://www.rationalrevolution.net/war/bush_family_and_the_s.htm

excerpt:

The basic actions of Neil Bush in the S&L scandal are as follows:

Neil received a $100,000 "loan" from Ken Good, of Good International, with no obligation to pay any of the money back.

Good was a large shareholder in JNB Explorations, Neil Bush's oil-exploration company.

Neil failed to disclose this conflict-of-interest when loans were given to Good from Silverado, because the money was to be used in joint venture with his own JNB. This was in essence giving himself a loan from Silverado through a third party.

Neil then helped Silverado S&L approve Good International for a $900,000 line of credit.

Good defaulted on a total $32 million in loans from Silverado.

During this time Neil Bush did not disclose that $3 million of the $32 million that Good was defaulting on was actually for investment in JNB, his own company.

Good subsequently raised Bush's JNB salary from $75,000 to $125,000 and granted him a $22,500 bonus.

Neil Bush maintained that he did not see how this constituted a conflict of interest.

Neil approved $106 million in Silverado loans to another JNB investor, Bill Walters.

Neil also never formally disclosed his relationship with Walters and Walters also defaulted on his loans, all $106 million of them.

...more...

[Ian David]

7. Beyond Abramoff: Gambling lobbyist joined with anti-gambling congressman..

Beyond Abramoff: Gambling lobbyist joined with anti-gambling congressman, derailed gambling bills

<snip>

But while Abramoff went on to become D.C.’s largest lobbyist, Safavian took a different route: he quit the firm he founded to become chief of staff to Rep. Chris Cannon (R-UT).

Cannon, 58, was elected in 1996. The bespectacled Mormon was known for advocacy of looser immigration laws, and his no-nonsense anti-gambling stance. Gambling, he contended, was a “pernicious vice.”

But that didn’t stop him from taking money from gambling lobbyists: Safavian and two other members of his firm gave Cannon a total of $2,750 in the 2000 cycle.

Safavian set to work immediately upon joining Cannon’s staff in 2001. He set up a soft-money fund for the congressman, listing his Janus email address as the contact: [e-mail]. The address remained on IRS filings while Safavian served as the congressman’s chief of staff, raising questions of who the lobbyist was actually working for.

More:
http://rawstory.com/news/2005/Beyond_Abramoff_Gambling_lobbyist_joined_forces_with_antigambling_congressman_derailed_gambling_0901.html

[drm604]

8. Ruse.

Unfortunate name for a bank president, but perhaps very appropriate.

[AuntiBush]

9. Cart Before Horse

Thanks RAW STORY. A bottomless pit of corruption.

[quaoar]

10. Apparently, Cannon ain't too popular

with the anti-immigration folks:

http://www.americanpatrol.com/REFERENCE/CannonWatch.html

[quaoar]

12. Looks like he has two primary opponents

But no Democrat running against him.

http://www.politics1.com/ut.htm

[Bushies gotta go]

13. I would have run

when I was planning on buying a house in Utah but then I found out I'd be the only dem in the state. I got scaredid and didn't buy the house, sneaking out of town in the middle of the night. Ony thing that savedid my hide were my Texas plates.

[hang a left]

14. dupe..sorry

Congressman made personal loan to bank president shortly before bank extended him $250,000-plus loan

John Byrne
Published: January 18, 2006




CannonDenies loan was a bribe; President says he recused himself from decision

Utah congressman Chris Cannon loaned nearly $100,000 to the president of a Nebraska bank who extended at least $250,000 in credit the following year to the representative's business venture in the state, RAW STORY has found.

Cannon's office confirmed that the congressman had extended a loan of between $50,000 and $100,000 to First National Bank of Gordon, Nebraska president Gary Ruse in September 1996. The following year, the Utah Republican's kosher beef-packing plant, Premium Beef, received a $250,000 to $500,000 loan from Ruse's bank.
Advertisement

A person familiar with the transaction asserts that Cannon's personal loan to Ruse was intended to ensure that he received a loan for his troubled beef-packing plant.

Cannon's office rejects the charge. A spokesman said that Ruse recused himself from the loan decision, and called any accusations of bribery "absurd."

"It was a loan of a personal nature," Cannon spokesman Charles Isom said of the congressman's loan to Ruse. "It's absurd to think the insinuation there being that the loan was made as a bribe."

snip>

http://rawstory.com/news/2005/Utah_congressman_made_personal_loan_to_0118.html