Faced with a request to give advice to GOP Congressional candidate Danny Tarkanian and his family as to how to avoid bankruptcy, Sen. Harry Reid says that he did what he would do for any constituent; he set up the appropriate meetings with the appropriate federal agencies.
The Tarkanian family is appealing a $17 million court judgment from a real estate deal gone bad in Southern California.
Reid says it would be "embarassing" to elect a congressman in Nevada who is facing financial ruin.
“I can’t make a $17 million dollar guarantee go away,” says Reid. “If the Tarkanians are in trouble, they’re going to have to pay this money back.”
Reid says the FDIC is standing by its judgement against the Tarkanians, but Danny Tarkanian says Reid isn’t telling the truth.
“The FDIC is still negotiating a settlement with us right now, so what is he talking about? Does anybody honestly think that Harry Reid, three weeks out from the campaign, all of the sudden decides to weigh in on this judgment deal when he’s been involved for two years?”
Tarkanian claims that he is a victim of fraud on the part of the bank and a development group. He says that if the court finds that his family is liable for the debt, they will pay the $17 million.