WASHINGTON, DC -- (MARKET WIRE) -- 07/09/08 -- Judicial Watch, the public interest groupthat investigates and prosecutes government corruption, announced todaythat it has filed separate complaints with the Federal Election Commission(FEC) and the U.S. Senate Ethics Committee against Senator Barack Obama forallegedly accepting a below-market rate mortgage loan in 2005 not availableto the general consumer.According to the Judicial Watch complaints, the Illinois Senator reportedlyreceived a home loan of $1.32 million at a rate of 5.625 percent, althoughthe average going rate on that day according to two different surveys wasbetween 5.93 and 6 percent. Unlike what was reportedly available for thegeneral consumer, this special below-market "super super jumbo" loan wassecured without an origination fee or discount points. (Questions aboutthe mortgage were first raised by The Washington Post.)
"It appears that due to his position as a United States Senator, BarackObama received improper special treatment from Northern Trust resulting inan illicit 'gift' which has a value of almost $125,000 in interestsavings," Judicial Watch wrote in its U.S. Senate ethics complaint."Judicial Watch therefore respectfully requests a full investigation intowhether the special Northern Trust mortgage received by Senator BarackObama constitutes a gift that is prohibited by Senate ethics rules." Inits FEC complaint, Judicial Watch also calls for a full FEC investigationinto whether the special mortgage is a disguised and illegal corporatecampaign contribution to Senator Obama.
As Judicial Watch notes in both complaints, Northern Trust has supportedBarack Obama's political campaigns for elected office since 1990.According to the Center for Responsive Politics, cited by The WashingtonPost, Northern Trust employees have donated $71,000. The Northern Trustpolitical action committee gave $1,250 to Senator Obama's 2004 campaign forthe United States Senate.
Northern Trust Vice President John O'Connell essentially admitted thecompany provided Obama preferential loan terms because of his position inthe U.S. Senate. "A person's occupation and salary are two factors; Iwould expect those are two things we would take into consideration,"O'Connell told The Washington Post. "This was a business proposition forus."
"Americans ought to be suspicious when a United States Senator such asBarack Obama obtains a sweetheart mortgage deal," said Judicial WatchPresident Tom Fitton. "We have serious concerns that Senator Obama'smortgage may have violated the law and Senate ethics rules."
Copies of Judicial Watch's complaints against Senator Obama are availableat www.judicialwatch.org.
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