According to a weekend POLITICO report, the younger brother of former vice president and 2020 presidential candidate Joe Biden might have benefitted from Biden’s position on the Senate Banking Committee in the 1970’s.
“In the 1970s, as Joe was entering the Senate and taking a seat on the Banking Committee, James [Biden] obtained unusually generous loans from lenders who later faced federal regulatory issues,” according to POLITICO. “Joe Biden was in touch with two of those banks about his brother’s loans, once to scold a bank executive about invoking his name in attempts to collect on overdue payments.”
At the time, the younger Biden was an inexperienced salesman and had a net worth of less than $10,000. But the elder Biden had just become a U.S. Senator.
“No sooner was freshman lawmaker Joe Biden seated on the Senate Banking Committee than James became the beneficiary of business loans that were described in news accounts at the time as unusually generous because of the relatively large amount of money he was able to borrow with little or no collateral and a lack of relevant prior experience,” the report said.
Soon after, James opened a nightclub with a business partner, which failed in short order. The partners received loans of $80,000, $60,000, and $25,000. One of the loans provided by Wilmington’s Farmers Bank was unsecured, meaning there was no collateral that could be seized by the bank in the event of default.
When the business failed and James began missing payments on the loan, Joe blamed the bank.
“What I’d like to know is how the guy in charge of loans let it get this far,” he reportedly told a local Delaware paper.
The News Journal, the Delaware paper, looked into it.
“The answer, according to three former officers of the troubled Farmers Bank, is the Biden name,” the paper reportedly said.
The bank thought the Biden name would attract bar-goers to the nightclub.
As noted by POLITICO, Biden often refers to himself as “Middle-Class Joe,” in an effort to distance himself from what many American’s believe is a corrupt, influence peddling legislative body.
Biden, though, has a net worth in the millions, and his family appears to have benefitted from his time as an elected official.
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