Your morning jolt: Tea party, business woes give Nathan Deal some identity problems
The tea party movement gave the Republican establishment another dose of heartburn on Tuesday, pushing Christine O’Donnell to an upset against U.S. Rep. Michael Castle in Delaware’s GOP primary for U.S. Senate.
O’Donnell’s victory gives Democrats a better chance of holding on to that seat – and perhaps the Senate itself – in November.
But here’s the relevant paragraph for Georgia, from the New York Times:
Mr. Castle, a moderate who served two terms as governor and had been reliably winning elections for the last four decades, became the latest establishment Republican casualty. Republican leaders, who had actively opposed Ms. O’Donnell, said the outcome complicated the party’s chances of winning control of the Senate.
While the GOP is giddy with the current anti-Democratic climate, the sheer volatility of the tea-tinged Republican electorate is unnerving, and has forced some unusual decisions, even here.
Specifically, the tea party movement and its anti-Washington attitude has complicated Nathan Deal’s effort to define himself.
On Tuesday, the campaign of the Republican nominee for governor released its first campaign ad, a biographical TV spot aimed at the lower section of the state that is least familiar with him – Augusta, Albany, Macon, Columbus and Savannah.
Deal is the son of two school teachers, the TV spot allowed. Family photos show him as a young prosecutor, judge and “public servant.”
The ad — which presumably contains the information that the Deal campaign most wants south Georgia voters to know – makes no mention of the fact that Deal spent nearly a generation in Congress, representing north Georgia from 1994 until last spring. Nor does it mention his time in the state Senate.
“This is about the Nathan Deal they don’t know,” Brian Robinson, spokesman for the Deal campaign, said – in an attempt to explain the absence of Washington or Atlanta in the ads.
***
The Deal TV spot also makes no mention of the former north Georgia congressman’s business experience. Deal was part owner of an auto salvage firm that became the subject of a U.S. House ethics investigation.
But my AJC colleague Alan Judd today provides another possible motivation:
In the midst of his campaign for governor, Nathan Deal faces such dire financial troubles that he must sell his home to avert foreclosure or bankruptcy.
Nathan Deal helped his daughter and son-in-law obtain more than $2 million in loans for Wilder Outdoors, a sporting goods store in Baldwin, Ga. The business failed — and so did the bank that lent the money.
Even if Deal liquidates all his assets, however, he still might be unable to repay a nearly $2.3 million business loan, documents reviewed by The Atlanta Journal-Constitution indicate. The loan comes due in full Feb. 1 — less than one month after Deal hopes to take office.
Financial crises aren’t necessarily fatal for political candidates. In 2009, Gov. Sonny Perdue was faced with payment of a $21 million loan related to his grain elevator business. But the governor has successfully kept a lid on the details.
Republicans were prepared to stick with state School Superintendent Kathy Cox, who – with her husband – was forced to declare personal bankruptcy, until Cox fled to D.C. and secure employment.
This spring, former state Rep. Tom Graves – in the midst of his bid for Deal’s congressional seat – was hit by a lawsuit from a bank, accusing him of being “insolvent” and attempting to duck repayment of a $2.2 million loan.
Tea party enthusiasts nevertheless stuck with Gaves. His financial status remains unresolved, but Graves is now the congressman from the 9th District.
For the Deal, the political impact of this news – apart from limiting his ability (or inclination) to identify himself as a businessman – may be found here:
Any way Deal tries to resolve the outstanding loan carries negative political or financial consequences.
Howard Rothbloom, a bankruptcy lawyer in Marietta, said in an interview he would advise Deal to sell his home and the commercial property, give the bank the proceeds and then ask the lender to write off the balance.
A South Carolina bank, SCBT, acquired Community Bank’s assets and deposits when the latter failed in January. As part of that deal, the FDIC agreed to share losses with SCBT on some of Community’s old loans. That arrangement — in essence, government help in paying off the debt — could work to Deal’s advantage, Rothbloom said.
“Everything is negotiable,” he said. “He could settle with the bank — pay them less than the full amount due in satisfaction of the debt. It’s not unusual.”
The above scenario would make it harder to condemn “too big to fail” and the immorality of federal expansionism.
***
A reminder: Georgia Public Broadcasting launches a new, weekly show at 7 tonight, called “Prime Time Politics.” Yours truly is involved.
***
On Fox5 News last night, Dale Russell reported that the state now wants to revoke the hospice permit of a major supporter of state Insurance Commissioner John Oxendine, who lost a GOP primary bid for governor in July:
***
In the Savannah Morning News, Larry Peterson reports that another Republican candidate for governor is headed back to the private sector:
When Eric Johnson ran for governor, his Savannah campaign headquarters was a suite at Hussey, Gay, Bell & DeYoung (HGBD).
And when the headquarters opened, he recalled starting his architectural career at HGBD in 1985 and said, “it feels like coming home.”
Now he has. The former state senator has been named to lead the firm’s architectural and interior design division. He is the new president of HGBD International.
Johnson, 57, is back at HGBD after working in real estate development for North Point Industrial for four years.
***
And at ATLaw, the Fulton County Daily Report, Andy Peters tells of state Supreme Court Justice Harris Hines’ odd date on Tuesday:
At 11 a.m., Hines said he was waiting on the steps of the State Capitol to meet a homeless man named J.J.
Hines recently left his cell phone on top of his vehicle and accidentally drove away. When he realized the phone was gone, Hines used his wife’s phone to call his number to see if anyone had found it. J.J. answered and offered to return the phone if Hines would meet him at the Capitol, near where he usually sleeps on the street.
During a news conference being held by Republican attorney general candidate Sam Olens, J.J. kept his promise and handed over the phone.
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85 comments Add your comment
Samuel J.
September 15th, 2010
11:58 am
Regarding the recent news of Deals’ association with his daughter and son-in-law’s business, why has no one mentioned the fact that their business was one of thousands of small businesses across the country that had to close due to this recession caused by big government and continued reckless spending (BARNES & OBAMA). If consumers are hurt financially, their purchasing decreases and some businesses will have to close. Retailers and manufacturers and all industry is has been affected. ‘Not to mention the loss of wealth and real estate values that everyone who saves and owns property has suffered. How do you like that 50% loss of value in your 401k and the current value of your property? Liberal Democrats such as Obama and Barnes will only continue to hurt our economy.
Also, isn’t it interesting to note that the AJC is still a Liberal rag and it’s readership is still dwindling down at a steady pace? Go figure…
Jayne M. Barker
September 15th, 2010
12:01 pm
Is it true that Karen Handel will run as an independent???
clear choice
September 15th, 2010
12:02 pm
Well, that tears it. Georgia absolutely CANNOT allow a person like Deal to run the 9th most populous state in the nation, given his absolutely ABYSMAL track record of business failures and ethical scandals.
In the accounting world, part of how we evaluate business performance is by taking into consideration the track record of the people in the driver’s seat. Right about now, I’d give Nathan Deal an F-minus based on his record. Just look at all the RED FLAGS!
What I find simply astonishing is aa you people who are willing to turn a blind eye to Deal’s situation. He’s up to his neck in ethical scandals, and up to his eyebrows in debt.
People, what Nathan Deal needs is to take some TIME OUT to get his life back in order! Trust me… I’ve seen it time and time again… the people who are most likely to commit fraud are the ones facing financial difficulty in their lives. Typically, they’re the ones who have taken out more debt than they can ever possibly hope to pay back. It’s called MOTIVE. They’ve got incentive to bend the rules in order to reap unlawful, unethical financial benefit.
This is why employers do background checks that involve an examination of credit history. Most businesses wouldn’t hire someone with a poor credit record to serve in a key position in the company. WHY would we want to hire this guy to run our state??
N Deal
September 15th, 2010
12:04 pm
@Samuel J – I got your Kool Aid.
td
September 15th, 2010
12:04 pm
Jayne M. Barker, Sorry to bust you bubble but she has already committed to work to elect Deal and will probably have a good job in his administration in the future.
catlady
September 15th, 2010
12:08 pm
So when Deal starts shooting off his mouth about bailing out those who took on more debt than they could afford (calling them freeloaders), we now KNOW he was talking about himself.
clear choice
September 15th, 2010
12:12 pm
If Nathan Deal gets the bank to forgive his debt, that amounts to nothing more than a BAIL OUT. My, my…what a sweetheart DEAL!
Tea party victories may present challenge for Deal | Georgia Elections News
September 15th, 2010
12:14 pm
[...] Political Insider’s Jim Galloway notes that Tuesday’s big victories for tea party-backed candidates in Republican primaries – and the prevailing anti-Washington mood across the country – complicate Nathan Deal’s ability to define himself. The challenge comes across in the gubernatorial candidate’s first campaign ad, which describes Deal simply as a “public servant” and doesn’t note that he spent nearly a generation as a congressman. Deal faces Democrat Roy Barnes and Libertarian John Monds in November. [...]
deegee
September 15th, 2010
12:27 pm
Samuel J, the business was doing bad when the economy was super hot, see timeline below. The Wilders were not good business managers and they put themselves under. It has nothing to do with Obama. You might as well blame Bush. He was president at the time.
In addition to investing about $2 million, the Deals signed papers in December 2005 guaranteeing payment on the first of what would become a series of loans: $506,000 from Gainesville Bank & Trust. Construction began on a 14,000-square-foot metal building, the front of which would be decorated to look like a log cabin.
The loan, backed by the property on Ga. 365, was scheduled to mature in September 2006. But that June, the Deals and the Wilders refinanced, pushing the due date back into the next year.
And in October, they went to another financial institution — Community Bank & Trust of Cornelia — for a second loan of about $1 million, according to documents filed in the Habersham County Courthouse. The Ga. 365 property again served as collateral, along with the Wilders’ home in Demorest.
Wilder Outdoors opened for business on Nov. 24, 2006.
The next summer, the business needed more cash. The Deals signed papers in June 2007 that increased the loan from Community Bank by $252,000. By the time it had been open seven months, the store had accumulated debt totaling almost $1.8 million.
khc
September 15th, 2010
12:30 pm
nathan will make sonny look like a piker given all his financial difficulties…..we know sonny used his office to accrue financial benefits for himself……it now looks like “sweet” deal will do the same…..good grief charile brown
ga must lead the country in d.a.sses per capita to support someone just cus he’s an R
John Galt
September 15th, 2010
12:44 pm
It’s rich- pun intended- that the Republicrat candidate is broke, and the Demopublican candidate is loaded. I thought the Republicrats were the rich folk’s party, and the Demopublicans were the party of the little man? Hummm…. maybe there’s no difference in them after all… sounds like just two different wings of the Establishment Party to me.
No Longer Republican
September 15th, 2010
1:07 pm
Samuel J…what you smoking? My gosh it must be some good stuff if that is what you really think. Was Obama president in 2008? You simply brainswashed stupid if you think your post is true.
????
September 15th, 2010
1:17 pm
You have to admit that just not everyone can borrow $2.4 million against $700,000 in collateral. Apparently Deal isn’t against deficit spending on the personal level.
Your morning jolt: Tea party, business woes give Nathan Deal some identity … - Atlanta Journal Constitution (blog) | Your Home Based Business
September 15th, 2010
1:45 pm
[...] Your morning jolt: Tea party, business woes give Nathan Deal some identity …Atlanta Journal Constitution (blog)In the midst of his campaign for governor, Nathan Deal faces such dire financial troubles that he must sell his home to avert foreclosure or bankruptcy. … [...]
Cissy
September 15th, 2010
2:04 pm
Amen, Jimmy and Guido! In this economic climate real-world business failures are not the disgrace they were; and always less of a disgrace, Mr. Barnes, than making a living off others’ misfortunes.
That said, I’m still writing in Eric Johnson.
Bill Orvis White: Does social, rather than fiscal, conservatism really have a place in this country? Is it really OK to legislate not just right actions, but a certain brand of morality? Isn’t that just as arrogant as passing a health care bill that most of us don’t want?
Pass the Fair Tax, maybe. Strengthen the military, sure. Open up oil and gas exploration and production, of course. But legislate behavior that agrees with one group’s definitions of what is good? Is insisting on one set of moral values really appropriate in a country whose founding document guarantees freedom of religion, speech, etc.? Sounds closer to fundamental Islam than I’d like to get. Social conservatives insisting on their brand of morality at the ballot box may cost us fiscal conservatives a voice in Washington at the midterm elections.
JDW
September 15th, 2010
2:04 pm
Deal says…“I’m going to make sure our obligations are met.”
The Governor of Georgia makes around $135,000…how will Raw Deal make the ends meet? Even at todays intrest rates debt service on $2.3 million is more that his take home pay would be.
You don’t think he intends to supplement his income somehow do you? Surely some nice cushy PAC wouldn’t want to help out in exchange for a favor or two…no couldn’t be…could it?
Rebel Without A Pause
September 15th, 2010
3:23 pm
Jim, you make it sound like good old boy Barnes is an outsider. He may have only been a one-termer as governor, but he has been a political operative his whole life. Hardly an outsider.
DC Deal
September 15th, 2010
4:26 pm
Of course he is almost bankrupt – it costs a lot to live in Washington DC for 15 years.
Pappa Grizzly
September 15th, 2010
5:21 pm
What? Should Deal accept personal responsibility for his failed bidness?
Heck no. Its Obama’s fault. Once Deal gets the guv-ship he will make millions on land deals just like my guy Sonny Perdue.
Paddy O
September 15th, 2010
7:53 pm
If you vote for Deal, don’t be surprised 3 years from now when the FBI walks him out of the capital in handcuffs. Personally, I thought Barnes did a darn good job his first term. A whole lot of our public teachers a way, way, way overpaid and underperforming. We need mass transit. I also think Barnes would have already addressed our reservoir problems that Sonny Perdue is simply kicking down the road while he travels the road recruiting scum bag companies from Communist nations to open up business here in GA. Meanwhile, the morons in Alabama just keep getting high quality car manufacturing jobs. I’m beginning to wonder who are the genuine morons in the Southeast. All you Dawgs enjoy losing to Spurrier again?
td
September 15th, 2010
11:16 pm
Paddy O, It is such a shame for you to be so miserable living in the beautiful state of Georgia. For the sake of your happiness why do you just not move up north with your other liberal friends and be happy?
ga female
September 16th, 2010
12:29 am
Lets not forget Deal is collecting his Federal Pension, from his years of service in congress, either he and or his wife is collecting Social Security. He is a big hypocrate.
ga female
September 16th, 2010
12:31 am
Lets not forget to look at Congress man Phil Gingrey and Former House Speaker Glenn Richardson on the board of the failed West Georgia Bank.
Wake up folks, These Republicans and their bankers could sign there names and get loans that the rest of us could never think of getting.
ga female
September 16th, 2010
12:33 am
Come on they already had a Bargain Barn on Highway 52 in Jasper, who in their right mind would think that they would need some high end store in North Georgia. What a foolish investment, why would we want this fool for Govenor.
Paddy O
September 16th, 2010
9:13 am
td – it such a shame that you are living in America and do not respect another’s right of freedom of speech – why don’t you move to Cuba? Sir – did you respond to any of my comments? Or do you have no intelligent response to my statements? Alabama long ago solved its water problems & use lots of hydroelectric. Atlanta can not even solve its sanitary sewer problems. Alabama does not appear to have any financial problems, which if Obama had not saved Perdue’s butt the last two years, Georgia would have a huge problem (tell me – do you support the billion dollars a year that Mr. Perdue borrowed almost every year he was in office? Is that a liberal or conservative action?) Finally, td – please tell me again – you enjoy getting a good butt whooping from Spurrier AGAIN?
Paddy O
September 16th, 2010
9:18 am
I am not liberal sir. I just expect my elected leaders to solve gross, blatant societal problems, which thus far the Republicans have utterly failed to do. My representative, Mark Butler, was one of the most intelligent guy at the Gold Dome. Do you enjoy the Repubs interfering in local government? Did you know that most cities controlled to installation of mobile homes (trailers) in their jurisdication by placing a maximum age on the trailer that could be moved in? Usually 5 or 10 years – the Repubs, who must have received a huge payoff from the manufactured home industry, passed a law that prohibits this. Do you like the thought that a 20 year old mobile home could be moved in? Do you think that mobile home will generate enough taxes to cover the services, especially school educational services, that a single woman with three kids would consume? The Repubs in GA are only conservative in their “no tax” pledge – this had led to increases in fees everywhere – from filing legal actions in courthouses to $5 to park at a state park – government leadership at its most brilliant!
Paddy O
September 16th, 2010
9:19 am
td – the reason BArnes lost is because he erroneously changed the state flag. If he hadn’t the Repubs would still be yapping at the door as the minority party.
Paddy O
September 16th, 2010
9:22 am
finally, the Repubs actually raise my tax burden when they terminated the housing exemption – this raised my property tax, and yours too most likely, about $200 dollars – more sheer brilliance!
Paddy O
September 16th, 2010
9:27 am
td – just read a couple of other of your comments – are you really a yellow dog repub? What exactly immoral & illegal & evidently STUPID actions could Deal take before you would not vote for him? Molest a child? Steal from the elderly? Blind adherence to any philosophy or person is indicative of a brainwashed fool. Good luck.
Jeff
September 16th, 2010
1:56 pm
Is the marijuana supply low in GA? I’m amazed at how much the liberals have spammed here. Look up to your false prophet Al Gore and write a poem about it. Every poll taken during this gubanatorial election cycle has shown Deal over Barnes. The argument that “everybody dumb who no thinkie like me” that has ejaculated all over this blog as some sort of rationalization for Barnes supporters makes the liberals’ elitist identity all the more ironic.
Georgia Gov. Candidate Nathan Deal Owes $2M – CBS News | Conservatives for America
September 16th, 2010
1:57 pm
[...] Leaves Deal In DebtWABEAtlanta Journal Constitution (blog) -WDEF News 12 -Atlanta Journal Constitution (blog)all 50 news [...]
The Centrist
September 16th, 2010
6:23 pm
Can anyone show proof that illegals, convicted felons or other’s without the right to vote HAVE voted or corrupted elections in Georgia in the since the Voting Rights Act? Crickets chirping… Does anyone remember that the 17-forms of ID that are no longer allowed at voting booths and allowed for you to get a free voter ID card? Crickets chirping… How many conservatives have been convicted of voter fraud for things like blocking robo-calls, advertising wrong election dates, destroying democratic registration cards, and forging absentee ballots. A boat load.
The Centrist
September 16th, 2010
6:32 pm
Many of those 20-year old mobile homes are being rented out to illegal immigrants at high rates and the rental income is not reported. I guess they are owned by the few liberals who live in Georgia. If the GOP was honest, they would raise taxes by 100% on any mobile home over 20-years old that is being rented out. I bet that, and clamping down more on employers, would have a higher impact on illegal immigrants than a “Papers Please” law.
The Centrist
September 16th, 2010
6:34 pm
At least the bank Barnes invested in is still solvent.
Jayne M. Barker
September 17th, 2010
6:58 am
“Blind sheep following their leader”…???
“Oh, the web we weave, when we attempt to deceive”…
Looks like Casey Cagle is headed for the big chair???