Democratic gubernatorial candidate Rory Reid continued his attack Monday against Republican opponent Brian Sandoval for being too cozy with bank lobbyists, although a spokesman for the Federal Deposit Insurance Corporation contradicts the Reid campaign’s claim taxpayers footed the bill for $1.2 billion in insurance payments Reid says were consequences of a Sandoval sponsored banking bill.
The new Reid ad — second in a series accusing Sandoval of being too close to lobbyists — starts with a narrator saying, "On lobbyists for big banks recruiting Brian Sandoval to run for governor."
Then it cuts to a clip of Sandoval on the show Nevada Newsmakers saying, "They asked me if I would be interested in the position, and certainly, yes."
The narrator then says, "No wonder. Sandoval’s law firm lobbies for nearly every bank in Nevada. Lobbyists pushed Sandoval into sponsoring the bill deregulating Nevada banks. It had devastating consequences. And left the rest of us to bail them out," flashing the words "$1.2 billion in losses" on the screen.
The ad cuts back to Nevada Newsmakers and has a clip with host Sam Shad asking Sandoval: "Are they running your campaign." Sandoval responds in the clip: "Yes. They’re folks that I trust."
A detailed memo the Reid campaign distributed with the ad lists citations for all the claims and includes the assertion that six banks opened since the passage of the banking bill, AB360 in 1997, "have failed, costing taxpayers at least $1.2 billion in bailouts."
But a spokesman with the Federal Deposit Insurance Corporation, the agency that steps in to make good on deposits in failed banks, says it is inaccurate to say taxpayers pay the bill when a bank fails.
Specifically, the amounts cited in the Reid campaign memo correlate with payments from the FDIC’s Deposit Insurance Fund, or DIF, as a result of the banks’ failures.
David Barr, an FDIC spokesman, says that money doesn’t come from taxpayers. It comes from money the banks themselves pay in premiums, Barr said.
"The FDIC does not receive taxpayer money. Like any insurance company, we receive our money from those we insure, which are banks," he said.
Barr also said the FDIC was an independent government agency and doesn’t use tax dollars for operations, either.
"My salary, this phone call, all comes from operating expenses, our operating budget comes out of the deposit insurance fund as well," he said. "My money gets paid out of the deposit insurance fund, not from United States taxpayers."
The Reid ad also makes a quick cut in the Nevada Newsmakers clips to make it appear as if Sandoval says something different from what he actually said.
The Sandoval clip in the ad shows Sandoval responding to Shad’s question of whether lobbyists Pete Ernaut and Greg Ferraro are running his campaign by saying: "Yes. They’re folks that I trust."
A full viewing of the complete interview plays differently.
In the unaltered clip, Shad asks: "Are they running your campaign?"
Sandoval responds: "Yes." He then quickly corrects himself and says, "They’re not running my campaign but they are advising my campaign."
The statement, "they’re folks that I trust" that appears to follow the "yes" response in the Reid ad is from earlier in the interview when Sandoval was discussing Ernaut and Ferraro.
The statement "they’re not running my campaign but they are advising my campaign" is entirely omitted.