On Saturday the New York Times reported that the Republican and Democratic Parties have established means to thwart a new federal law banning “soft money” contributions that goes into effect after Tuesday’s election.

The Times reported:

“At a meeting two weeks ago, the chairman of Democratic National Committee, Terry McAuliffe, told a group of 40 of the party’s most prolific fund-raisers that he expected a newly created spin-off organization, the Democratic State Party Organization, to raise approximately $40 million in soft money before the 2004 presidential election, two party fund-raisers said…

“A longtime Democratic fund-raiser who attended a secret party conclave at the Mayflower Hotel here described Mr. McAuliffe’s message as boiling down to 'this campaign finance reform stuff is nothing but junk.' The fund-raiser, who insisted on not being named, explained: 'Terry said, `This is the last time we'll be asking you for money–after Nov. 5, we can’t do it anymore. But get out there next year and in 2004 and continue to raise all this soft money.’”

Today we talk to McAuliffe about soft money, Tuesday’s election and his connection with Global Crossing, the fallen telecommunications giant.

McAuliffe once served as a consultant to Global Crossing founder Gary Winnick and reportedly arranged golfing dates between Winnick and former President Clinton. McAuliffe reportedly made $18 million when he cashed out most of his $100,000 investment in the company back in ’98 and ’99.

Guest:

• Terry McAuliffe, chairman of the Democratic National Committee.