FEC Fines Fannie, RNC

The Federal Election Commission has fined Fannie Mae, the Republican National Committee, and the National Republican Senatorial Committee $132,000 for violating federal campaign finance laws, although Fannie's portion of the fine is just $10,000.The Federal Elections Commission said it found that "certain donations" made by Fannie Mae from 1998 through 2000 were made or deposited in nonfederal accounts of the party committees that were not "building funds." The law prohibits contributions or expenditures from congressionally chartered corporations in connection with any election. The law in effect at the time provided for a specific exception for contributions to building fund accounts. According to the FEC, Fannie donated $51,470 to the Republican Governors' Association, and these funds were deposited in the Republican National State Elections Committee account of the RNC. The RNC also improperly deposited $250,000 received from Freddie Mac in its general nonfederal account in 2001 even though the donation had been properly earmarked for the building fund. In years past Fannie and Freddie have been among the largest donors of soft money to politicians.