Friday, June 02, 2006

Oh Brother, where art thou getting off charging me five per cent interest?

With all the hub bub surrounding Joe Volpe’s kiddie donations (let me add my voice to the chorus saying ‘hey hey, ho ho, Joe Volpe you’ve got to go’) and some of the other media stories coming out of the Liberal leadership’s financial disclosures to Elections Canada, I think there is another interesting story in those documents that has been missed: the $100,000 loan to Bob Rae from his brother John.

A long time Liberal power player and corporate player with Montreal’s Power Corp. (on a side note, they’re the ones taking over the world with Jean Chretien’s daughter, Peter McKay’s girlfriend and the rest of the stonecutters),according to the filings John made the $100,000 loan to his brother, Robert Keith Rae (I can see why he says just call me Bob), for the generous interest rate of just five per cent.
(Click here for the PDF, scroll to page five.)

He’s charging his own brother five per cent interest? Ouch. I mean, I don’t have a brother, and I’m not a wealthy corporate type, but if I was and my brother was running for the leadership I think I’d make the loan interest free. I mean, what are brothers for, right?

Charging your brother interest man, uncool.

*Is there maybe some election financing rule that says loans to campaigns must charge a minimum interest rate?

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Rhetoric said...

I think the rule is that loans have to carry an interest at some ambiguous rate of "fair market rate" or something like that. At least that is the only reason I can figure out why the campaigns are all paying different rates. One would think that if there were a hard and fast rule they would figure out what the minimum is and all set their loans up at that rate.

Darrell said...

If the interest charged is below prime, the difference can be counted as a non monetary contribution.

It's in the manual for leadership candidates on found here:

A BCer in Toronto said...

That makes sense, I didn't think John Rae would just be a jerk like that. :)