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Bailed-out firms shelled out for RNC
Many donated months ago, hosts say, and also gave to Democrats

Before the big taxpayer bailout, financial firms wrote large checks to help stage the 2008 Republican National Convention in St. Paul, a report revealed Thursday.

Insurance giant AIG donated $750,000 to help host the convention, a gathering held only weeks before the firm needed an emergency $85 billion loan from the Federal Reserve.

Mortgage giant Freddie Mac donated $250,000 to the Minneapolis St. Paul convention host committee. One week after the last convention balloon fell, taxpayers took control of the firm, in hopes of avoiding a financial calamity.

A number of troubled U.S. financial firms were convention donors and now are receiving billions of dollars in capital injections from the U.S. Treasury. Goldman Sachs donated $250,000. Morgan Stanley donated $100,000.

Banking giants were RNC donors, too, and now are receiving emergency help. A unit of Citigroup donated $350,000. Wells Fargo gave $250,000. JPMorgan Chase donated $100,000.

The donations, publicly disclosed Thursday, all were made to the Minneapolis St. Paul 2008 Host Committee, the group responsible for raising money to hold the Republican National Convention. The Sept. 1-4 convention nominated Sen. John McCain and his running mate, Alaska Gov. Sarah Palin.

Jeff Larson, chief executive of the local host committee, said the donations from financial firms were "all in good faith" and many were made months ago.

"A lot of those companies came in very early in the process, in 2007, before they had any problem, before we knew they were going to have any problems," Larson said. "They've been supporters and contributors to past conventions." Many of the same financial firms gave similarly large amounts to the Democratic National Convention host committee in Denver. That gathering nominated the ticket of Sens. Barack Obama and Joe Biden.

Unlike most other political gifts, donations to convention host committees can be any amount of money, given directly from corporate coffers. Critics have condemned the arrangement as an open invitation to influence-buying.

The RNC host committee says it raised $51.2 million as of Sept. 30 and spent $45.5 million, the report said.

Virtually every major corporation based in Minnesota made significant contributions. Organizers initially expected 40 percent of the donations would come from Minnesota. They turned out to be 43 percent.

"We felt great about the local participation and local support that we got for the convention," Larson said.

Here is a breakdown of the Minnesota corporate donations, some made in cash, some given in services:

Minnesota's biggest RNC donors: Target ($3 million), Qwest ($2.3 million), Best Buy ($2.2 million), United Health Group ($1.5 million)

Minnesota's million-dollar club: Ameriprise Financial, Carlson Family Foundation, St. Jude Medical, 3M, Travelers, US Bank ($1 million each)

Half-a-million (or more) givers: Xcel Energy ($955,000), Ecolab Foundation ($750,000), General Mills, Supervalu, Medtronic ($500,000 each)

At least $250,000: Cargill and Mosaic ($400,000 each); Boston Scientific, Hubbard Broadcasting, Mall of America and Wells Fargo ($250,000 each)

The $100,000 club: Northwest Airlines ($170,000), Thomson West ($150,000), CH Robinson, CHS Inc., Fagen Inc., Frauenshuh, Land O'Lakes, MoneyGram, Pentair, Prairie Island Tribal Council, Securian, Thrivent Financial, Walgreens ($100,000 each)

The $50,000 club: Winthrop and Weinstein ($92,000), Alliant Techsystems, Federated Insurance, Great River Energy, Minnesota Power, Nash Finch, Polaris, Rosen's Diversified ($50,000 each)

The $25,000 club: Bremer Financial, Briggs and Morgan, Faegre and Benson, Kraus-Anderson, Marquette Financial, Minnesota Vikings, Piper Jaffray, RBC Foundation, Robins Kaplan Miller & Ciresi, Twin City Fan Co. ($25,000 each)

And who didn't give? Among the 20 Fortune 500-size corporations in Minnesota, only one is absent: Hormel Foods, based in Austin. Its corporate policy prohibits political convention donations.

"The corporate community in Minneapolis-St. Paul understood what the opportunity was and what this convention presented to the area," Larson said.

Related Links
  • Freddie Mac among RNC donors, Tom Webb, St. Paul Pioneer Press (October 16st, 2008)
  • 2008 Republican National Convention Donors, Minneapolis Saint Paul 2008 RNC Host Committee (August 1st, 2008)

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