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Loan Carve-Out Is For ‘Socialist Bank’

From a context-free Washington Post:

In this photo taken Feb. 5, 2010, Eric Hardmeyer, president of the Bank of North Dakota, poses outside the bank’s steamboat-shaped headquarters near the Missouri River.

Conrad requests special provision for North Dakota bank be removed from health bill

By Nick Anderson

March 18, 2010

Buried in the bill Democrats unveiled Thursday afternoon was a provision related to student loans that appeared aimed at winning support from the chairman of the Senate Budget Committee.

By late afternoon he made clear, however, that he did not want any special carve-outs for his state.

Democratic aides had told reporters on a conference call Thursday that the Bank of North Dakota, in the home state of Sen. Kent Conrad (D), would be eligible to continue to issue student loans with federal guarantees of repayment on default.

With that sole exception, the measure would eliminate a program to provide federally guaranteed student loans as of of July 1, cutting out financial middlemen and expanding the federal government’s direct loan program.

Conrad asked that the provision be removed after it came under scrutiny.

"Often, facts are the first victim in an overly heated partisan environment. And rather than see the excellent reputation of the Bank of North Dakota damaged, I have asked to have the provision removed," he said in a statement.

"We negotiated this in good faith months ago," Conrad was quoted as saying by the newspaper Roll Call. "But it’s not worth it. It’s not right that it be used to misrepresent this package."

A scan of the bill posted on the House Rules Committee Web site indicates the relevant section pertaining to North Dakota: "SEC. 2213. AGREEMENTS WITH STATE-OWNED BANKS."

Faithful readers of this site might recognize the name ‘the Bank of North Dakota.’

As we noted last month, the Bank Of North Dakota is the country’s only socialist bank.

From a fawning Associated Press:

Economy prompts fresh look at ND’s socialist bank

By Dale Wetzel, Associated Press Writer Tue Feb 16

BISMARCK, N.D. – It has no automatic tellers or drive-up windows, doesn’t issue credit cards, and tends only a few thousand checking and savings accounts. Its only location is a glass, steamboat-shaped headquarters near the Missouri River, where the business moved from its original 1919 home in a former auto assembly plant.

The Bank of North Dakota — the nation’s only state-owned bank — might seem to be a relic. It was the brainchild of a failed flax farmer and one-time Socialist Party organizer during World War I

The Bank of North Dakota was a cornerstone of the agenda of the Nonpartisan League, a farmers’ political insurgency spawned by anger about outside control of North Dakota’s credit and grain markets.

Founded in 1915 by A.C. Townley, who became a Socialist Party organizer after he went broke raising flax in western North Dakota, the NPL advocated state-owned banks to provide low-interest farm loans, along with state flour mills, grain elevators, meatpacking houses and hail insurance.

Supporters gained control of the legislature and the governorship within five years. The movement’s power quickly waned, but two of its state-owned businesses survived — the Bank of North Dakota and a state flour mill and grain elevator in Grand Forks

So now we know why the Bank Of North Dakota was singled out from all of the thousands of banks in the land for the only exemption on student loans.

What a surprise, huh?

This article was posted by Steve on Friday, March 19th, 2010. Comments are currently closed.

5 Responses to “Loan Carve-Out Is For ‘Socialist Bank’”

    • Liberals Make Great Speedbumps says:

      “Conrad asked that the provision be removed after it came under scrutiny.”

      Yeah, it’s always amazing how these scumbags become “smart enough” only after their malfeasance is exposed!

    • canary says:

      LD, Conrad says stealing was in good faith, but not worth it now. Not worth getting caught.

      What can we expect from a president who spent his entire life with hoods & crooks.

      So, ya think Maxine Water’s husband’s bank will get more?

  1. canary says:


    Senator Tom Coburn, Physician members of the house, News Conference, Ultimatum

    “I want to send a couple of messages to my colleagues in the House.
    If you voted no and you vote yes, and you lose your election, and you think any nomination to a federal position isn’t going to be held in the Senate, I’ve got news for you. It’s going to be held.
    Number two is, if you get a deal, a parochial deal for you or your district, I’ve already instructed my staff and the staff of seven other senators that we will look at every appropriations bill, at every level, at every instance, and we will outline it by district, and we will associate that with the buying of your vote. So, if you think you can cut a deal now, and it not come out until after the election, I want to tell you that isn’t going to happen. And be prepared to defend selling your vote in the House.”

    Here’s another strong Republican future presidential candidate. We need someone who speak up. He was on the top 5 conservative list of that Journal

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