Oct 30, 2008
Omaha World Herald - Terry finds campaign funds frozen after financial crisis
WASHINGTON - The turmoil in the nation's financial sector is more than just a campaign issue for U.S. Rep. Lee Terry’s re-election campaign.
Terry found himself locked out of about $100,000 in campaign funds that were invested with the Reserve Fund, the nation’s oldest money market fund.
The Reserve Fund froze hundreds of thousands of accounts last month after one of its funds was hit by losses because of notes backed by the failed Lehman Brothers.
Terry, a Republican seeking his sixth term representing Nebraska’s 2nd Congressional District, is in a tight race with Democrat Jim Esch. Every dollar matters.
So the Terry campaign obtained a $100,000 loan Oct. 24 from Sherman County Bank in Loup City, Neb.
"We wanted to be able to access something equal to that (money market) for some of our final TV (ads)," said Terry campaign manager Dave Boomer.
The broker who handled the Reserve Fund investment arranged for the loan, Boomer said. He stressed that the campaign was not having cash flow problems or overspending its budget.
Boomer said the campaign expects to have access in the near future to the money in the Reserve Fund -- and that as soon as that happens, it will pay back the bank.