Democratic Governors Association bashes Scott in letter but apparently sinks into amnesia

GOP gubernatorial candidate Rick Scott spoke to Republican women in Jacksonville.How desperate are Democrats as November approaches? On Tuesday the DGA sent a letter to the Republican Governors Association. The letter bashed GOP gubernatorial candidate Rick Scott, using the tactics of Scott’s opponent in the Republican Primary to reiterate criticism over the fines HCA paid--$1.7 billion—after the administration of President Bill Clinton undertook an investigation based on whistleblowers’ allegations.

The final act of desperation came when the DGA asked the RGA to oppose Scott’s candidacy.

While the letter focused on Scott, there should have been a reality check regarding the Democrat candidate’s own background. Did the DGA sink into amnesia regarding Sink?

For starters, the DGA said Scott’s victory was a “race to the bottom” because he didn’t win 50 percent of the vote. The Democrat governors, however, neglected to point out that Scott faced a serious challenger while Dem candidate Sink did not—her only challenge on the Dem side came from a fellow named Brian Moore. Of Moore, The St. Petersburg Times said Moore was an “idealist and habitual office seeker…His most recent bids were as a socialist for president in 2008…” 

The DGA stated the obvious—“…we clearly support Alex Sink for governor…”

But alas, the letter offered nothing on Sink’s background. The Democrat candidate touts her business background as an asset—she has to because she’s only been chief financial officer of Florida since 2006.

Thus it seems useful to point out a few matters in the first of an ongoing series about the gubernatorial candidates from both parties.

Sink worked for NationsBank, which became Bank of America Florida. She was appointed in 1993 to the post of president of BoAF. It is useful to point out that the 1990s under the Clinton administration brought the most sweeping deregulation in the financial sector in the nation’s history. Clinton officials who now work for the Obama administration praised themselves for that deregulation.

So as banking standards loosened, Sink was at the helm in one capacity or another.

And NationsBank was happy to assist. The St. Petersburg Times reported on Aug. 11, 1999, that Tampa home buyers (and buyers in other cities) were being “targeted” to the tune of $3 billion in “low-cost mortgage loans” through a new Bank of America program. BoA operated as Nations Bank in Florida.

Remember those predatory lending practices decried by President Barack Obama?

Here’s how the Times described those loan opportunities BoA was so excited about in 1999: “Eligible home buyers will not have to pay closing costs, down payments or application fees. NACA, which has offices in 20 cities, including Tampa and Jacksonville, will offer housing services for free, including follow-up counseling and credit help after a deal closes.”

Financial experts and Main Street agree that the global financial meltdown occurred after more than a decade of unwise practices. And Sink’s former employer BoA got billions in bailout money which some media claim they have paid back.

But here’s another memory for the DGA. The L.A. Times, in May, 2009, did an article on Sink’s campaign. The paper named her mentor at BoA and said he praised her.

 Who was Sink's mentor? None other than Ken Lewis. The paper noted, “But now Bank of America has soaked up $45 billion in bailout money. Its widely reviled CEO, Lewis, earned more than $20 million in 2007 and $9 million in 2008. He has been blamed for the disastrous purchase of Merrill Lynch & Co., which has caused Bank of America stock to plunge.”

In effect, yes, Scott’s company did pay back $1.7 billion in fines.

Yes, BoA did allegedly pay back bailout money.

But BoA contributed to a global financial meltdown resulting in catastrophic losses in pension plans, home mortgage values and ultimately played a role in fraud that cost the taxpayer money. In 2000 Sink exited but her banking experience certainly occurred during a period of time when solid ground was laid in part via loose lending practices for the financial meltdown.

Bearing in mind Obama has said he wants to recoup taxpayers' money, I confess this Republican is still waiting for her taxpayer refund on bank bailouts.

The DGA might want to take a look at its own candidate’s record. Perhaps that’s one reason she ran a silent campaign during the primary—aside from the fact her only competition on the Democrat ticket came from a man a newspaper described as a socialist.

We do sympathize, however. Sometimes sinking into amnesia is the handiest tactic desperate Democrats can turn to.

(Commentary by Kay B. Day/Sept. 1, 2010)

[Disclosure: No goods, rewards, cash or benefits are derived from any political candidate.]