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Lugar's New Math: 9 to 9 = 8 to 2

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By Al Kamen
Friday, November 4, 2005

Feeling low because you've missed out on all the good ambassadorships? Cheer up! One exceptionally fine one, the Netherlands, which appeared filled just might be opening up again.

Seems a most unusual snag has developed in the bid of Los Angeles multibillionaire and Ameriquest Mortgage Co. chairman and founder Roland E. Arnall , a longtime major Democratic contributor until recently, to that most excellent posting in the land of tulips and wooden shoes.

Arnall and his wife, Dawn Arnall ,were reportedly the single biggest source of financial support for President Bush since 2002, giving or raising at least $12.25 million. More than enough to erase all contributions to Democrats.

But there were other concerns. Arnall's company is the largest mortgage lender to lower-income people and those with iffy credit ratings. Regulators in 30 states have raised concerns about shoddy lending practices, alleged fraud, falsification of documents and bait-and-switch tactics.

Arnall has set aside $325 million to settle the claims. The eight Senate Foreign Relations Committee Democrats had said they would nonetheless vote against Arnall, though they think he's a good nominee, because the legal cloud over him had not been resolved -- and some states wanted a commitment to change sales practices as part of a deal.

Then Sen. Chuck Hagel (R-Neb.) said he, too, still had problems and wanted to think about it, maybe talk it over with Arnall.

"I do think it's important who represents this country abroad," Hagel said at the hearing. "I do think we should send people who are not under a cloud of investigation. Mr. Arnall, fairly or unfairly, finds himself in that position."

Chairman Richard G. Lugar (R-Ind.) nonetheless pushed for a vote. Hagel came down against Arnall, deadlocking the committee 9 to 9.

Some thought the tie, as would usually be the case, blocked the nomination from going the floor for a vote. Not so.

Lugar read the Senate rules to say the tally that counted was of the 10 senators present and they voted 8 to 2 for Arnall. Sen. Paul S. Sarbanes (D-Md.) protested that the proxies had to be included, but the nomination went to the Senate floor -- at least for now.

Democrats say if the nomination is brought up for a vote, they will challenge Lugar's interpretation of the rules. They say the Senate parliamentarian has indicated the Dems would prevail.

This may yet be worked out -- but keep those r?sum?s at the ready.


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