Clinton Still Trying To Pay Campaign Debt

Secretary Of State Nominee Will Hold NYC Soiree With "Ugly Betty" Star; Tix $50-$1,000

(CBS/AP)  President-elect Barack Obama's vast list of donors is being asked to donate to Hillary Rodham Clinton as she scrambles to reduce her massive campaign debt before she becomes secretary of state and federal ethics rule limit her fundraising, an Obama adviser said Thursday night.

An appeal on Clinton's behalf signed by Vice President-elect Joe Biden is to be sent by e-mail to all of the more than three million donors to Mr. Obama's record-setting fundraising, according to this adviser, who spoke on condition of anonymity because the e-mail had not yet been sent.

Mr. Obama promised after Clinton endorsed him to help her pay off her debt and this is the second time the Obama list has been asked to help Clinton. It was used once during the campaign as well, but its second use underlines the urgency of Clinton's task now that she is Mr. Obama's choice to be secretary of state.

Clinton and her husband, former President Bill Clinton, will headline a major debt retirement event in New York Dec. 15 with "Ugly Betty" star America Ferrera as master of ceremonies. Tickets range from $50 to $1,000, with top donors earning a premium seat and a backstage photo with the former first lady.

Clinton also plans to sell a children's book, titled "Dreams Taking Flight" by author Kathleen Krull, about her pioneering candidacy. Clinton's mother, Dorothy Rodham, planned to send an e-mail to supporters later this week asking them to purchase the book to help raise funds to pay down Clinton's debt.

On Tuesday, a day after Mr. Obama announced she would serve as his top diplomat, Bill Clinton signed an e-mail to supporters asking them to send a note of congratulations to his wife and including a link for contributing to her debt retirement.

Mr. Obama and the Clintons were aware that the remaining campaign debt could be a problem, even before Sen. Clinton was named the secretary of state nominee, as CBSNews.com Political Editor Vaughn Ververs reported last month.

The urgency is rooted in the size of the New York senator's unpaid bills and the fundraising restrictions she will face once she joins Mr. Obama's cabinet.

At the beginning of November, Clinton owed $7.5 million to vendors from her failed presidential bid, according to campaign finance records. The largest share of the debt - about $5.3 million - is owed to the polling firm of Mark Penn, the Clintons' longtime political strategist. She owes hundreds of thousands of dollars for printing, equipment rental, phone banks and other services.

Clinton has slowly been trimming the debt since suspending her campaign last June, partly with Mr. Obama's help. But her fundraising efforts will be curtailed if she is confirmed as secretary of state and becomes covered by the Hatch Act, which regulates political involvement by federal employees.

A 2001 advisory opinion by the federal Office of Special Counsel said a federal employee with a campaign debt would be prohibited from "personally soliciting, accepting or receiving political contributions." That means Clinton's political committee could keep raising money to pay off her creditors, but without her direct involvement.

The lack of access to Clinton could pose a disincentive for donors, said Sheila Krumholz, director of the Center for Responsive Politics, which tracks political donations.

"People write a check to get into the room with a candidate or government official. If she's legally barred from fundraising, the No. 1 reason for giving has been removed," Krumholz said. "It's like attending a wedding and the bride isn't there."

The advisory opinion does allow the former candidate to appear briefly at fundraising events and thank donors. That restriction could suit Clinton well, according to some of her top bundlers who say neither she nor her husband has ever been good at asking for donations.

But none of the Hatch Act rules apply until Clinton is confirmed, so there's an opportunity for people eager to get some face time with the incoming secretary of state. Aides said she will try to avoid doing anything that suggests she is leveraging her new post for fundraising advantage.

Brad Smith, a former Federal Election Commission chairman, said Clinton would be wise to avoid any appearance of conflict of interest.

"If nothing else, there's the embarrassment element," Smith said. "A secretary of state trying to raise campaign money is kind of ugly."

Clinton's new job will help her avoid some pitfalls that loom when political access linked to campaign donations. For example, foreign citizens, who might be interested in forging a relationship with an incoming secretary of state, are legally barred from contributing to U.S. political campaigns.

Still, Krumholz said, there are plenty of U.S. citizens with strong ties to other countries who would welcome the chance to write Clinton a check.

"Wealthy people who have family overseas and are tied to issues in the country - human rights issues, for example - have more incentive to give," Krumholz said.

Analysts said that fundraising to retire a politician's debt - never easy - is more difficult during the recession. Also, Clinton is trying to pay off debts from the Democratic primaries, where many of her supporters already gave the maximum $2,300 per person. They cannot be solicited again.

The large share of her debt owed to Penn, a controversial figure and harsh Obama critic, also complicates matters for Clinton. Many Democrats blamed him for her strategic failings.

Clinton also has about $6 million in her Senate re-election account; some of that could be used under strict restrictions to help pay these debts. Under FEC rules, she would need to ask each contributor's permission to move the donation to her debt retirement account - and none could come from people who already contributed the maximum to her presidential bid.

[newschuck]

The Clinton''s own(?)large homes .
Could they gain some financial help from a sale
or lease of one or more of their properties, or has
the housing and finance problem put them into a bind also ,like some of the rest of us .

[clovisbuford]

The Clintons can always sell shares in their White Water Portfolio, that is always an easy way to raise money.
Posted by TheGoodTexan at 02:08 PM : Dec 07, 2008" yeah that was a winner ,60 million spent of the tax payers money , the investigation was still going on yrs after the clintons left office , and the clintons were never convicted or charged with anything to do with whitewater.

[thegoodtexan]

The Clintons can always sell shares in their White Water Portfolio, that is always an easy way to raise money.

[clovisbuford]

Thought the muslim was to help Hillary retire her debt with all this money he has. Guess he has reneged on this as well as everything else he proposes.
Posted by seriousinusa at 08:42 PM : Dec 06, 200 if by muslim you mean obama ,i have received several e-mails as an Obama supporter asking me to retire her debt . Perhaps like most republicans you think well once he is in office or she is , she can count on the industries she regulates to retire that debt , that is a republican free market solution . If you owe money for getting reelected or elected ,count on the ones you regulate to provide the money , guarantees a good result for your industry , ask the gramms , wendy or phil eh .

[clovisbuford]

libra217, any moron who''''s not a person of his word, having no morals to win at all cost, get his goons to do the dirty work so he can stay clean, making empty promises, can win the election.
Posted by USA-No1 at 11:50 AM : Dec 06, 2008..err just because that is what happened in 2000(ask Mccain and Al Gore) doesnt mean its the same in 2008 , but thanks for the historical refreshment

[clovisbuford]

Lets examine Mr. Berg and his credibility , from Conservapedia:9/11 Lawsuit
Berg first came to prominence in May, 2004, when he represented Ellen Mariani, wife of Louis Mariani, in a lawsuit against President Bush, Vice President Cheney, former Defense Secretary Donald Rumsfeld, and 55 others under the federal Racketeering Influenced Corrupt Organizations act. Mr. Mariani was killed when United Air Lines flight 175 was flown into the South Tower of the World Trade Center on September 11, 2001. The lawsuit alleges that the government had foreknowledge of the terrorist attacks and provided no warning. In addition, it claims the government actively covered up evidence after the attack. For instance, Mr. Berg alleged that former Florida Governor Jeb Bush went to the offices of Hoffman Aviation School, took records, and had them flown out of the country on an Air Force plane.[1][2] , you know right wingers want to embrace Mr. Berg , embrace him and his claims .. the wingnuts out there are on all sides of the spectrum.

[clovisbuford]

I personally am waiting on RowdyTexans announcement on how much money she is giving to retire clintons debt . RT was such an advocate of Hillarys in the campaign against Obama ,now that Obama has embraced hillary , I eagerly await reports of Rowdy''s campaign largesse.

[libra217]

libra217, any moron who''s not a person of his word, having no morals to win at all cost, get his goons to do the dirty work so he can stay clean, making empty promises, can win the election.

Posted by USA-No1 at 11:50 AM : Dec 06, 2008

If that''s truly what you think American democracy is like, I think you should move to another country more to your liking.

I suspect, however, that you are just one more Republican sore loser. So many of them around these days.

[jt_lancer]

The politicians are always looking for a handout. And if you don''t give it to them voluntarily, they''ll confiscate it from you by government force.

[bedwetter777]

TheMajority1 at 01:20 PM
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Wow, man you must be devoid of any common decency to post stuff like that. Would your mother be proud of you posting that sort of stuff? Please, for the love of God, show some self-respect and self-restraint.

[libra217]

Yes, ineptitude for starters.

Posted by TheMasses10 at 11:54 AM : Dec 05, 2008

What ineptitude would that be ? He hasn''t even taken office yet. He won the election by an electoral college LANDSLIDE and ran an absolutely brilliant campaign. He has made far more cabinet and staff appointments, and proposed many more programs, at an early stage of the transition than any other President-Elect -- Democrat OR Republican -- has done. Sure doesn''t sound like "ineptitude" to me. So far, Obama has been supremely COMPETENT. I''ll bet you, like Christ_Truth, are bothered more by the color of his skin.

[bedwetter777]

Were did all the PUMAs go? Were they all Limbaugh''s "operation chaos"?

Christ_Truth, where did you get the notion that BO wasn''t a US citizen because of his dual citizenship as a Kenyan? You didn''t just come up with that yourself did you? Did somebody tell you this half truth and you took the bait? Is this some underhanded smear campaign to just spread any kind of negativity possible?

[libra217]

Yes, ineptitude for starters.

Posted by TheMasses10 at 11:54 AM : Dec 05, 2008

What ineptitude would that be ? He hasn''t even taken office yet. He won the election by an electoral college LANDSLIDE and ran an absolutely brilliant campaign. He has made far more cabinet and staff appointments, and proposed many more programs, at an early stage of the transition than any other President-Elect -- Democrat OR Republican -- has done. Sure doesn''t sound like "ineptitude" to me. So far, Obama has been supremely COMPETENT.

[sly_64]

The Clintons have a lot of money, they can bail themselves out. Why ask people to pay for a poorly run campain. She shouldn''t get a dime from anyone.

[libra217]

I don''t feel too sorry for Mark Penn, to whom most of the money is owed. He did a pretty poor job on Hillary''s campaign.

And by the way, she''s already contributed some $13 million of her own money to her campaign.

[blazercoach1]

This is pathetic. How much money do the Clintons have? How supposedly bad is the American economy?

And yet there they are with their hands out so their sycophants can drive themselves further in the ground economically out of star-lust.

I''m not sure who is more pathetic: the Clintons or the snivelling crowds who contribute to them.

[billster68]

Hillary will of course eventually pay off her debts. But who really knows where the money will come from. Legally she is supposed to follow restrictions on where the funds can come from - - except for each of the Clintons when did rules really matter? These two obviously do pretty much what they want - - laws are for the "little people" to follow. Speaking of little people, imagine the financial hardship Hillary has caused to all sorts of small businesses that provided goods and services to her candidacy? Just a few more little people who really don''t count for much - - let them "pound salt" waiting for their money. She owes the money and she should pay it now - - right from her own personal funds.

[libra217]

That church is one of the most racist on the planet.

Posted by Christ_Truth at 10:47 AM : Dec 05, 2008

Is there any reason other than racism for your quest to find any excuse whatsoever to deny Obama the Presidency ?

[musethalia]

pay her debt?? you have got to be kidding Obama - why don''t YOU pay her debt personally and stop asking the people for more when they''re already strapped financially. people are losing their homes, jobs, retirement funds and you have the balls to ask the people to pay her campaign debt...that''s unbelievable when the clinton''s have millions in personal and liquid assets.

[libra217]

You still don''t seem to get it, Christ_Truth. No one is DENYING that Obama held dual citizenship for a time ! He was still born in the good ole USA and is therefore eligible to be President.