Wednesday, January 18, 2006

Culture of Corruption: Congressman made loan to bank president before getting $250k loan

Utah congressman Chris Cannon loaned nearly $100,000 to the president of a Nebraska bank who extended at least $250,000 in credit the following year to the representative's business venture in the state, RAW STORY has found.

Cannon's office confirmed that the congressman had extended a loan of between $50,000 and $100,000 to First National Bank of Nebraska president Gary Ruse in September 1996. The following year, the Utah Republican's kosher beef-packing plant, Premium Beef, received a $250,000 to $500,000 loan from Ruse's bank.

A person familiar with the transaction asserts that Cannon's personal loan to Ruse was intended to ensure that he received a loan for his troubled beef-packing plant.

Cannon's office rejects the charge. A spokesman said that Ruse recused himself from the loan decision, and called any accusations of bribery "absurd."

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