THE GOLDEN RULE: THOSE THAT HAVE THE GOLD, MAKE THE RULES

July 9, 2002

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The Washington Post has reported that when Rep. James P. Moran Jr. (D-Va.) had about $700,000 in debt, was juggling two dozen credit cards, and had begun to slip behind on his payments, MBNA Corp., a credit card lender with critical legislation pending on Capitol Hill, came to his rescue. According to the Post, MBNA gave Moran a $447,500 home refinancing package that consolidated much of his debt at a lower interest rate on Jan. 30, 1998. Federal Reserve records show it was the largest mortgage package MBNA reported giving to a single borrower that year.

As Moran was negotiating the loan, reported the Post, he also was supporting a bill pushed by MBNA and others in the credit card and finance industry that would make it tougher for people to walk away from debts by declaring bankruptcy. According to the Post, Moran said the loan had absolutely nothing to do with the legislation, and was an honest attempt to solve mounting financial troubles.