David Spence’s tenure on the board of Reliance Bancshares Inc. has his campaign in hot water, again. The Kansas City Star points out Spence's inconsistent statements related to the bank's decision to delay a TARP payment on its $40 million loan:
The bank’s board in February 2011 voted to delay payment on its loan because of a lack of capital.
Spence at first told at least two media outlets that he resigned from the Reliance board in part because of that decision. “What I wanted to do, and what the board wanted to do, are two different things,” Spence told the St. Louis Beacon.
But The Associated Press reported this weekend that Spence had participated in the unanimous vote in favor of withholding loan payments.
Spence’s campaign is trying to explain the discrepancy by insisting that the candidate hasn’t changed his story, he just remembers more now.
That won’t satisfy either Spence’s opposition or Missouri voters.
Spence took out at least $9 million in mortgage loans for his business and a vacation home while on the bank’s board of directors. While it’s not unusual for bank board members to receive loans from their own institutions, the large amount of money loaned to Spence while the bank was short enough on cash to qualify for a TARP bailout raises questions.