From WSJ.com June 11, 2008; Page A22
"Barack Obama may have come up with a creative way to solve the housing recession: Let everyone buy property at a discount the way he did from Tony Rezko, and give everyone in America a discount mortgage the way Angelo Mozilo of Countrywide did for Fannie Mae's Jim Johnson. Team Obama's real estate and mortgage transactions are certainly a change from business as usual. They suggest old-fashioned back-scratching below even current Beltway standards.
A former CEO of mortgage financing giant Fannie Mae, Mr. Johnson is now vetting Vice Presidential candidates for Mr. Obama. But he is also a textbook case for poor disclosure as regulators sifted through the wreckage of Fannie's $10 billion accounting scandal. Despite an exhaustive federal inquiry, Mr. Johnson managed to avoid disclosing one very special perk: below-market interest-rate mortgages from Countrywide Financial, arranged by Countrywide CEO Angelo Mozilo. Journal reporters Glenn Simpson and James Hagerty broke the story this weekend.
Fannie Mae tells us that Mr. Johnson did not inform the company's board of these sweetheart mortgage deals, nor did his CEO successor Franklin Raines, who also received such loans. We can understand why. Fannie bought mortgages from loan originator Countrywide, and then packaged them into securities for sale or kept the loans and profited from the interest. Mr. Mozilo told Dow Jones in 1995 that he was "working very closely . . . with Jim Johnson of Fannie Mae to come up with a rational method of making the process more efficient by the use of credit scoring."
Since Fannie was buying Countrywide's loans, under terms set by Mr. Johnson and later Mr. Raines – or by people in their employ – the fact that Fannie's CEO had a separate personal financial relationship with Countrywide was an obvious conflict of interest. The company's code of conduct required prior approval of such arrangements. Neither Mr. Johnson nor Mr. Raines sought such approval, according to Fannie.
Even if they had received waivers from the board to enjoy these perks, conscientious board members would then have wanted to disclose the waivers to investors. Post-Enron, the Sarbanes-Oxley law requires such disclosures. But even in the late-1990s, when the Friends of Angelo loans began, board members would likely have raised red flags.
Former SEC Chairman Harvey Pitt tells us that "the best way to deal with issues like this is not to have these kinds of relationships. From both the Countrywide and the Fannie perspective, it is simply bad policy to permit loans to 'friends' on more favorable terms than others similarly situated would be able to get."
One question is whether Messrs. Johnson and Raines were using their position to pad their own incomes that were already fabulous thanks to an implicit taxpayer subsidy. (See the table nearby.) But the bigger issue is whether they steered Fannie policy into giving Mr. Mozilo and Countrywide favorable pricing, which means they helped to facilitate the mortgage boom and bust that Countrywide did so much to promote. A further federal probe would seem to be warranted, and we assume Barney Frank and his fellow mortgage moralists will want to dig into this palm-greasing from Capitol Hill.
The irony here is that Mr. Obama has denounced Mr. Mozilo as part of his populist case against corporate excess, calling Mr. Mozilo and a colleague in March "the folks who are responsible for infecting the economy and helping to create a home foreclosure crisis." Obama campaign manager David Plouffe also said in March that "If we're really going to crack down on the practices that caused the credit and housing crises, we're going to need a leader who doesn't owe these industries any favors." But now this protector of the working class has entrusted his first big task as Presidential nominee to the very man who received "favors" in return for enriching Mr. Mozilo.
Yesterday, ABC News asked Mr. Obama whether he should have more carefully vetted Mr. Johnson and Eric Holder, who is working with Mr. Johnson on veep vetting. Correspondent Sunlen Miller noted Mr. Johnson's loans from Countrywide and Mr. Holder's involvement as Deputy Attorney General in the Clinton Administration in the pardon of fugitive Marc Rich. Said Mr. Obama: "Everybody, you know, who is tangentially related to our campaign, I think, is going to have a whole host of relationships – I would have to hire the vetter to vet the vetters."
Vetting Mr. Johnson's finances would have been time well spent, judging by a May 2006 report from Fannie Mae's regulator, the Office of Federal Housing Enterprise Oversight (Ofheo). Even if Mr. Obama considers the advisers helping him select a running mate "tangentially related" to his campaign, he might have thought twice about any relationship with Mr. Johnson.
Addressing the company's too smooth (and fraudulent) reported earnings growth in the late 1990s and early 2000s, Ofheo reported: "Those achievements were illusions deliberately and systematically created by the Enterprise's senior management with the aid of inappropriate accounting and improper earnings management . . . By deliberately and intentionally manipulating accounting to hit earnings targets, senior management maximized the bonuses and other executive compensation they received, at the expense of shareholders."
* * *
The regulator described how, despite an internal Fannie analysis that valued Mr. Johnson's 1998 compensation at almost $21 million, the summary compensation table in the firm's 1999 proxy suggested his pay was no more than $7 million. Ofheo found that Fannie had actually drafted talking points to deflect such media questions as: "He's trying to hide how much he's made, isn't he?" and "Gimme a break. He's hiding his compensation."
To this list we would add one more, directed at Mr. Obama: Is this what you mean by bringing change to Washington?
"
Showing posts with label Obama's VP Search. Show all posts
Showing posts with label Obama's VP Search. Show all posts
Wednesday, June 11, 2008
Obama's Johnson Test
From Slate.com:
"Will Obama show us the instruction manual for his new kind of politics?
By John Dickerson
Posted Tuesday, June 10, 2008, at 1:48 PM ET Jim Johnson, the man Barack Obama has picked to lead his vice-presidential vetting team, has gotten preferential treatment for personal loans from Countrywide Financial, a company Sen. Obama and others have blamed for helping to create the subprime mortgage mess. How big a deal is this for the Democratic nominee? The Republican National Committee, as you might expect, is diving for the fainting couches. Here is an assessment, based on three different standards:
The Obama Standard
Barack Obama called out Countrywide by name on the campaign trail during the primaries. He particularly criticized the company's CEO for his excessive compensation and more generally "infecting the economy and helping to create a home foreclosure crisis," which he linked not only to the 2 million who lost their houses but to school districts that couldn't purchase supplies and pay teachers. This is the same CEO who gave Johnson his sweetheart deal. Obama's aides also criticized Clinton's then-campaign strategist, Mark Penn, for giving PR advice to the company.
Now the man Obama has entrusted with what he has called the most important decision of his campaign is wrapped up in Countrywide and tied to the CEO. There are lots of unanswered questions about the Johnson deal, though no evidence as yet that he did anything wrong. But the Obama standard isn't wrongdoing. It's mere connection to the company. By that standard, this is bad news.
Since Obama has just held a national seminar for 16 months on changing politics and shedding the old insider way of doing things, you might expect that he'd take these disclosures seriously, if for no other reason than to show that even when it might hurt him, he's committed to letting the light shine on his associates. Nope—his campaign has called the issue irrelevant. Double bad.
The McCain Standard
Jim Johnson is a powerful insider who has friends in high places. The Countrywide deal is evidence that they can get things done quickly and extra-smoothly for him. John McCain has lots of similarly connected friends like Johnson. Many of them raise money for him. Some of them work these kinds of connections professionally, are called lobbyists, and McCain hangs out with them. A former lobbyist is vetting his vice-presidential picks. He also has former lobbyists on his staff, some of whom worked for free while being paid their regular salary by their lobbying firms. This amounts to a subsidy (it's also legal, and Obama volunteers do it, too).
None of this should stop McCain from pointing out Obama's hypocrisy about Johnson. It makes sense for McCain to balance out the hit he's been taking for his special-interest ties by pointing out Obama's difficulty here. But because of his own operations, he can make only so much of this. If McCain gets too self-righteous, he'll open himself up to the same charges of hypocrisy Obama now faces.
The Objective Standard
There are lobbyists, and then there are friends. Both can influence the president. The latter can actually influence him more then any paid lobbyist. Far more, because influence peddling is a lot subtler than people think. Obama has called Johnson a "friend," and if he helps the young senator navigate this crucial decision (including the sticky Hillary Clinton issue), they're going to be good friends, or at the very least, Johnson will become a fixer.
Presidents, like the rest of us, rely on friends to give them trusted advice about their areas of expertise. Friends can also get their calls returned by presidents or the men and women who work for them. The advice-givers never show up on a lobbying disclosure form, but they can deeply influence a president's thinking because they come to issues with an outside-the-bubble perspective and the credibility, often, of having been right before.
This is part of the Washington system, which as a whole Barack Obama is running against and promising to change. It's also part of the Chicago system he comes from. But it's not a factor of political life that Barack Obama talks about very much. He rails against lobbyists at length, but where does he draw the boundaries for himself on these other kinds of relationships? And where should the boundaries be? How does Obama, who says his mistakes with his friend Tony Rezko represent a lapse in judgment, show us he's grown?
I'm not suggesting we have to vet every friend. But it would be great if Obama could show us the instructions for how his new kind of politics works on this front. He has a chance now. And he could see this as a political opportunity, too, to outdo McCain, who has sometimes responded to questions about his ties to lobbyists by saying that we should trust that he's never done anything that would harm the public interest. The Johnson business is hardly the national crisis the Republican National Committee claims it is. But it's worse than the brushoff Obama is giving it."
"Will Obama show us the instruction manual for his new kind of politics?
By John Dickerson
Posted Tuesday, June 10, 2008, at 1:48 PM ET Jim Johnson, the man Barack Obama has picked to lead his vice-presidential vetting team, has gotten preferential treatment for personal loans from Countrywide Financial, a company Sen. Obama and others have blamed for helping to create the subprime mortgage mess. How big a deal is this for the Democratic nominee? The Republican National Committee, as you might expect, is diving for the fainting couches. Here is an assessment, based on three different standards:
The Obama Standard
Barack Obama called out Countrywide by name on the campaign trail during the primaries. He particularly criticized the company's CEO for his excessive compensation and more generally "infecting the economy and helping to create a home foreclosure crisis," which he linked not only to the 2 million who lost their houses but to school districts that couldn't purchase supplies and pay teachers. This is the same CEO who gave Johnson his sweetheart deal. Obama's aides also criticized Clinton's then-campaign strategist, Mark Penn, for giving PR advice to the company.
Now the man Obama has entrusted with what he has called the most important decision of his campaign is wrapped up in Countrywide and tied to the CEO. There are lots of unanswered questions about the Johnson deal, though no evidence as yet that he did anything wrong. But the Obama standard isn't wrongdoing. It's mere connection to the company. By that standard, this is bad news.
Since Obama has just held a national seminar for 16 months on changing politics and shedding the old insider way of doing things, you might expect that he'd take these disclosures seriously, if for no other reason than to show that even when it might hurt him, he's committed to letting the light shine on his associates. Nope—his campaign has called the issue irrelevant. Double bad.
The McCain Standard
Jim Johnson is a powerful insider who has friends in high places. The Countrywide deal is evidence that they can get things done quickly and extra-smoothly for him. John McCain has lots of similarly connected friends like Johnson. Many of them raise money for him. Some of them work these kinds of connections professionally, are called lobbyists, and McCain hangs out with them. A former lobbyist is vetting his vice-presidential picks. He also has former lobbyists on his staff, some of whom worked for free while being paid their regular salary by their lobbying firms. This amounts to a subsidy (it's also legal, and Obama volunteers do it, too).
None of this should stop McCain from pointing out Obama's hypocrisy about Johnson. It makes sense for McCain to balance out the hit he's been taking for his special-interest ties by pointing out Obama's difficulty here. But because of his own operations, he can make only so much of this. If McCain gets too self-righteous, he'll open himself up to the same charges of hypocrisy Obama now faces.
The Objective Standard
There are lobbyists, and then there are friends. Both can influence the president. The latter can actually influence him more then any paid lobbyist. Far more, because influence peddling is a lot subtler than people think. Obama has called Johnson a "friend," and if he helps the young senator navigate this crucial decision (including the sticky Hillary Clinton issue), they're going to be good friends, or at the very least, Johnson will become a fixer.
Presidents, like the rest of us, rely on friends to give them trusted advice about their areas of expertise. Friends can also get their calls returned by presidents or the men and women who work for them. The advice-givers never show up on a lobbying disclosure form, but they can deeply influence a president's thinking because they come to issues with an outside-the-bubble perspective and the credibility, often, of having been right before.
This is part of the Washington system, which as a whole Barack Obama is running against and promising to change. It's also part of the Chicago system he comes from. But it's not a factor of political life that Barack Obama talks about very much. He rails against lobbyists at length, but where does he draw the boundaries for himself on these other kinds of relationships? And where should the boundaries be? How does Obama, who says his mistakes with his friend Tony Rezko represent a lapse in judgment, show us he's grown?
I'm not suggesting we have to vet every friend. But it would be great if Obama could show us the instructions for how his new kind of politics works on this front. He has a chance now. And he could see this as a political opportunity, too, to outdo McCain, who has sometimes responded to questions about his ties to lobbyists by saying that we should trust that he's never done anything that would harm the public interest. The Johnson business is hardly the national crisis the Republican National Committee claims it is. But it's worse than the brushoff Obama is giving it."
Obama Defense of Johnson Raises More Questions
From Washington Post's The Trail By Dan Balz on June 11, 2008:
"The most important decision Barack Obama will make between now and the November election is the selection of a vice presidential running mate. That makes all the more remarkable his effort Tuesday to suggest that the people he has put in charge of helping make the decision are somehow not really part of his campaign.
Obama is on the defensive over his selection of James A. Johnson, the former CEO of Fannie Mae, to help lead the vice presidential search process, a role he played for John F. Kerry four years ago.
Johnson is drawing fire over his jumbo home loans from Countrywide Financial, a major actor in the subprime mortgage mess, that may have been below market rates. The loans were first reported by the Wall Street Journal. Johnson also has drawn criticism in the past for his role in generous compensation packages to executives of companies on whose boards he served.
At a news conference in St. Louis yesterday, Obama was asked about Johnson and the fact that the candidate has often criticized the activities of Countrywide. Rather than defend his choice, he sought to suggest that the role Johnson is playing is only tangential to his campaign and that it is impossible for the campaign to vet the vetters.
"Jim Johnson has a very discrete task, as does Eric Holder [another member of the VP search team], and that is simply to gather up information about potential vice presidential candidates," Obama responded. "They're performing the job well. It's a volunteer, unpaid position and they're giving me information, and I will then exercise judgment in terms of who I'll want to select as a vice presidential candidate. So these are folks who are working for me, not people who I have assigned to a particular job in the future administration, and ultimately, my assumption is, is that this is a discrete task they'll be performing over the next two months."
The distinctions Obama tried to draw raise other questions. Is he suggesting that Johnson, who is not paid, is exempt from campaign strictures that might apply to the lowliest paid staffers? Is he suggesting that Johnson, while overseeing some of the most sensitive work underway in the campaign, will act merely as a transmission belt for information scooped up from any and all available sources? Is he suggesting he would not select Johnson for a role in his administration? Or that different rules would apply to those he might select than those who play central roles in the campaign?
Johnson can certainly defend himself, if he needs defending. He is a skilled and discreet Washington insider and veteran political powerbroker whose advice and judgment are valued by people like Obama and Kerry and scores of other powerful politicians and business executives. Nor are all the details of the Countrywide transactions known, although the Journal story said Johnson received a favorable interest rate. A lawyer for Johnson told the Journal that the loans were within standard practice in the industry, given someone "of Mr. Johnson's background."
All of this will be sorted out in the days ahead. But in the meantime, for Obama to suggest that Johnson is floating in some outer orbit of his campaign raises questions about the candidate's willingness to deal forthrightly with controversy. Presidential candidates long have turned to trusted and loyal advisers and potential administration officials to help run vice presidential search operations. Is there any reason to think Obama has not done the same?
The last two presidents tapped the advisers who oversaw the vice presidential selection process to play enormously important roles in their administration. Warren Christopher ran Bill Clinton's search process in 1992 and ended up as secretary of state. Dick Cheney ran the process for George W. Bush and in a remarkable twist ended up as the vice president -- perhaps the most powerful ever. It is not unreasonable to think that Johnson could end up playing a significant role in an Obama administration.
There are many ways Obama and his team could be responding to this, but they are doing what they've done in the past when turbulence hits, which is to hunker down, stick to their talking points and wait for the storm to pass, which it often has.
David Axelrod, Obama's senior strategist, echoed the candidate during a Wednesday morning interview on MSNBC. "He's a volunteer and the job is just to gather information, period," he said of Johnson. He went on to say, "He's not leading the vetting. There's a committee that's vetting these candidates. He's part of that committee."
It isn't clear whether the uproar over Johnson is a passing storm or a more serious problem for the Obama campaign. For now, the campaign has decided to treat it as a minor annoyance that will soon disappear. But the candidate's response has raised questions about the candidate himself that could well linger past the moment."
"The most important decision Barack Obama will make between now and the November election is the selection of a vice presidential running mate. That makes all the more remarkable his effort Tuesday to suggest that the people he has put in charge of helping make the decision are somehow not really part of his campaign.
Obama is on the defensive over his selection of James A. Johnson, the former CEO of Fannie Mae, to help lead the vice presidential search process, a role he played for John F. Kerry four years ago.
Johnson is drawing fire over his jumbo home loans from Countrywide Financial, a major actor in the subprime mortgage mess, that may have been below market rates. The loans were first reported by the Wall Street Journal. Johnson also has drawn criticism in the past for his role in generous compensation packages to executives of companies on whose boards he served.
At a news conference in St. Louis yesterday, Obama was asked about Johnson and the fact that the candidate has often criticized the activities of Countrywide. Rather than defend his choice, he sought to suggest that the role Johnson is playing is only tangential to his campaign and that it is impossible for the campaign to vet the vetters.
"Jim Johnson has a very discrete task, as does Eric Holder [another member of the VP search team], and that is simply to gather up information about potential vice presidential candidates," Obama responded. "They're performing the job well. It's a volunteer, unpaid position and they're giving me information, and I will then exercise judgment in terms of who I'll want to select as a vice presidential candidate. So these are folks who are working for me, not people who I have assigned to a particular job in the future administration, and ultimately, my assumption is, is that this is a discrete task they'll be performing over the next two months."
The distinctions Obama tried to draw raise other questions. Is he suggesting that Johnson, who is not paid, is exempt from campaign strictures that might apply to the lowliest paid staffers? Is he suggesting that Johnson, while overseeing some of the most sensitive work underway in the campaign, will act merely as a transmission belt for information scooped up from any and all available sources? Is he suggesting he would not select Johnson for a role in his administration? Or that different rules would apply to those he might select than those who play central roles in the campaign?
Johnson can certainly defend himself, if he needs defending. He is a skilled and discreet Washington insider and veteran political powerbroker whose advice and judgment are valued by people like Obama and Kerry and scores of other powerful politicians and business executives. Nor are all the details of the Countrywide transactions known, although the Journal story said Johnson received a favorable interest rate. A lawyer for Johnson told the Journal that the loans were within standard practice in the industry, given someone "of Mr. Johnson's background."
All of this will be sorted out in the days ahead. But in the meantime, for Obama to suggest that Johnson is floating in some outer orbit of his campaign raises questions about the candidate's willingness to deal forthrightly with controversy. Presidential candidates long have turned to trusted and loyal advisers and potential administration officials to help run vice presidential search operations. Is there any reason to think Obama has not done the same?
The last two presidents tapped the advisers who oversaw the vice presidential selection process to play enormously important roles in their administration. Warren Christopher ran Bill Clinton's search process in 1992 and ended up as secretary of state. Dick Cheney ran the process for George W. Bush and in a remarkable twist ended up as the vice president -- perhaps the most powerful ever. It is not unreasonable to think that Johnson could end up playing a significant role in an Obama administration.
There are many ways Obama and his team could be responding to this, but they are doing what they've done in the past when turbulence hits, which is to hunker down, stick to their talking points and wait for the storm to pass, which it often has.
David Axelrod, Obama's senior strategist, echoed the candidate during a Wednesday morning interview on MSNBC. "He's a volunteer and the job is just to gather information, period," he said of Johnson. He went on to say, "He's not leading the vetting. There's a committee that's vetting these candidates. He's part of that committee."
It isn't clear whether the uproar over Johnson is a passing storm or a more serious problem for the Obama campaign. For now, the campaign has decided to treat it as a minor annoyance that will soon disappear. But the candidate's response has raised questions about the candidate himself that could well linger past the moment."
Tuesday, June 10, 2008
Obama's Stumbling Response to Countrywide-VP Search Controversy
From abcnews Political Punch by Jake Tapper: "June 10, 2008 11:42 AM
ABC News' Sunlen Miller today asked Sen. Barack Obama, D-Illinois, how he could "rail against Countrywide Financial Corp as an example of insiders and today's economy while your VP search is headed by someone who got questionable loans from Countrywide?" (This is an issue we wrote about earlier today.)
"And in addition," Miller continued, "another person on that same VP search team – Eric Holder -- has also been involved in the Marc Rich scandal."
"Well, look," Obama said, "the, the, I mean - first of all I am not vetting my VP search committee for their mortgages, so you’re gong to have to direct -- "
"But shouldn’t you?" asked Miller.
"Well, no," Obama said. "It becomes sort of a, um, I mean, this is a game that can be played - everybody, you know, who is tangentially related to our campaign, I think, is going to have a whole host of relationships -- I would have to hire the vetter to vet the vetters. I mean, at some point, you know, we just asked people to do their assignments.
"Jim Johnson has a very discrete task," Obama continued, "as does Eric Holder, and that is simply to gather up information about potential vice presidential candidates. They are performing that job well, it’s a volunteer, unpaid position. And they are giving me information and I will then exercise judgment in terms of who I want to select as a vice presidential candidate.
"So this – you know, these aren’t folks who are working for me," Obama said. "They're not people you know who I have assigned to a job in a future administration and, you know, ultimately my assumption is that, you know, this is a discreet task that they're going to performing for me over the next two months."
You can watch some of this press conference HERE.
Did I read that correctly? Did Obama claim that Johnson and Holder -- two of the three people heading up his VP search committee -- aren't "work"ing for him?
I suppose that's because they're unpaid, but my stars, that's a lot of high-level, time-consuming sensitive effort to not be considered "working" for Sen. Obama.
- jpt
UPDATE: Sen. John McCain presidential campaign spokesman Tucker Bounds just pounced on this, saying “It’s preposterous for Senator Obama to claim that the leader of his VP selection committee isn’t working for him. Barack Obama has castigated Countrywide Financial, but now that Jim Johnson has been exposed for taking sweetheart deals from Countrywide’s CEO - Obama is in a state of denial. It’s that brand of weak leadership and hypocrisy that shows why Barack Obama has no record of taking courageous stands or making change in Washington.”
ABC News' Sunlen Miller today asked Sen. Barack Obama, D-Illinois, how he could "rail against Countrywide Financial Corp as an example of insiders and today's economy while your VP search is headed by someone who got questionable loans from Countrywide?" (This is an issue we wrote about earlier today.)
"And in addition," Miller continued, "another person on that same VP search team – Eric Holder -- has also been involved in the Marc Rich scandal."
"Well, look," Obama said, "the, the, I mean - first of all I am not vetting my VP search committee for their mortgages, so you’re gong to have to direct -- "
"But shouldn’t you?" asked Miller.
"Well, no," Obama said. "It becomes sort of a, um, I mean, this is a game that can be played - everybody, you know, who is tangentially related to our campaign, I think, is going to have a whole host of relationships -- I would have to hire the vetter to vet the vetters. I mean, at some point, you know, we just asked people to do their assignments.
"Jim Johnson has a very discrete task," Obama continued, "as does Eric Holder, and that is simply to gather up information about potential vice presidential candidates. They are performing that job well, it’s a volunteer, unpaid position. And they are giving me information and I will then exercise judgment in terms of who I want to select as a vice presidential candidate.
"So this – you know, these aren’t folks who are working for me," Obama said. "They're not people you know who I have assigned to a job in a future administration and, you know, ultimately my assumption is that, you know, this is a discreet task that they're going to performing for me over the next two months."
You can watch some of this press conference HERE.
Did I read that correctly? Did Obama claim that Johnson and Holder -- two of the three people heading up his VP search committee -- aren't "work"ing for him?
I suppose that's because they're unpaid, but my stars, that's a lot of high-level, time-consuming sensitive effort to not be considered "working" for Sen. Obama.
- jpt
UPDATE: Sen. John McCain presidential campaign spokesman Tucker Bounds just pounced on this, saying “It’s preposterous for Senator Obama to claim that the leader of his VP selection committee isn’t working for him. Barack Obama has castigated Countrywide Financial, but now that Jim Johnson has been exposed for taking sweetheart deals from Countrywide’s CEO - Obama is in a state of denial. It’s that brand of weak leadership and hypocrisy that shows why Barack Obama has no record of taking courageous stands or making change in Washington.”
Obama's VP Screener has Ties to Controversial CountryWide Financial
From abcnews Political Punch by Jake Tapper: June 10, 2008 9:36 AM
"That's the problem with bringing a Washington, DC, insider on board. They're sometimes covered with the goop from the insides of Washington.
What's the big deal about Obama campaign fundraiser/Vice President selection committee member Jim Johnson getting $7 million in loans from Countrywide Financial Corp.? (As the Wall Street Journal reported Saturday and the New York Sun's Josh Gerstein followed up on.).
Mortgages with rates below market averages, including "a $5 million home equity line of credit against a house in Ketchum, Idaho, a 5.25% loan of $1.3 million for a home in Palm Desert, Calif., and a 3.875% loan of $971,650 for a home in Washington, D.C." Mortgages set up through an informal program for friends of the company's CEO, Angelo Mozilo.
The problem is, Obama critics say, perception and hypocrisy. Obama had railed against Countrywide and Mozilo, and his campaign had impugned Sen. Hillary Clinton, D-NY, for taking money from Countrywide lobbyists and for allowing a senior campaign adviser to simultaneously do work for Countrywide.
**
Campaigning in Pennsylvania in March, Sen. Barack Obama, D-Illinois, assailed mortgage giant Countrywide Financial Corp., for embodying the economic and political culture dominated by corporate lobbyists and insiders.
"Countrywide Financial," Obama said. (Watch HERE.) "This is a company that is as responsible as any firm in the country for the housing crisis we're facing today. When Countrywide Financial was sold a few months ago, its top two executives got a combined $19 million. These are the folks who are responsible for infecting the economy and helping to create a home foreclosure crisis….They get a $19 million bonus while people are at risk of losing their home. What's wrong with this picture?"
("They" are Mozilo and the president of Countrywide, David Sambol.)
Around that time the Obama campaign also criticized Clinton for affiliations with Countrywide.
In the Washington Post: "Obama aides also said Clinton is in no position to stiffen oversight after taking contributions from mortgage industry lobbyists, including funds from representatives of Countrywide, which has been at the center of the mortgage meltdown. 'If we're really going to crack down on the practices that caused the credit and housing crises, we're going to need a leader who doesn't owe these industries any favors,' campaign manager David Plouffe said."
On MSNBC, senior Obama strategist David Axelrod criticized how senior Clinton strategist Mark Penn had consulted for Countrywide. "She's stuck him with him through the revelation that his firm was working for Blackwater and working for Countrywide," Ax said (watch HERE.) "And, you know, so, it’s kind of stunning. Remember that the embassy said they weren't sure whether he was there as a representative of his firm or a representative of Senator Clinton. I mean, I think there are issues associated with this. I'm not - you (Keith Olbermann) can use the word hypocrisy, but there are certainly questions that arise from this."
**
Yesterday McCain told Fox News that the presence of Johnson on the Obama campaign "suggests a bit of a contradiction talking about how his campaign is going to be not associated with people like that. Clearly he is very much associated with that."
Shot back the Obama campaign, through spox Tommy Vietor, "It’s the height of hypocrisy for the McCain campaign to try and make this an issue when John Green, one of John McCain’s top advisors, lobbied for Ameriquest, which was one of the nation’s largest subprime lenders and a key player in the mortgage crisis. As President, Senator Obama will crack down on fraudulent lenders and bring real relief to Americans struggling in the grip of the housing crisis—the kind of change that works for the American people.”
The Obama campaign through talking points first reported at Mark Halperin's The Page call this story "overblown and irrelevant...This an overblown story about what appear to be completely above-board transactions. The Wall Street Journal even admits that they don’t have a story-noting that it’s 'impossible' to know the factors that went into these arrangements."
(Note: the Wall Street Journal admits no such thing.)
Continue the talking points: "Americans know that we face a critical choice in this race-and isn’t about the terms of an outside advisor’s loans. This race is about leadership, and which candidate will crack down on fraudulent lenders and bring real relief to Americans struggling in the grip of the housing crisis. Barack Obama has offered a real solution to the housing crisis-John McCain hasn’t."
"That's the problem with bringing a Washington, DC, insider on board. They're sometimes covered with the goop from the insides of Washington.
What's the big deal about Obama campaign fundraiser/Vice President selection committee member Jim Johnson getting $7 million in loans from Countrywide Financial Corp.? (As the Wall Street Journal reported Saturday and the New York Sun's Josh Gerstein followed up on.).
Mortgages with rates below market averages, including "a $5 million home equity line of credit against a house in Ketchum, Idaho, a 5.25% loan of $1.3 million for a home in Palm Desert, Calif., and a 3.875% loan of $971,650 for a home in Washington, D.C." Mortgages set up through an informal program for friends of the company's CEO, Angelo Mozilo.
The problem is, Obama critics say, perception and hypocrisy. Obama had railed against Countrywide and Mozilo, and his campaign had impugned Sen. Hillary Clinton, D-NY, for taking money from Countrywide lobbyists and for allowing a senior campaign adviser to simultaneously do work for Countrywide.
**
Campaigning in Pennsylvania in March, Sen. Barack Obama, D-Illinois, assailed mortgage giant Countrywide Financial Corp., for embodying the economic and political culture dominated by corporate lobbyists and insiders.
"Countrywide Financial," Obama said. (Watch HERE.) "This is a company that is as responsible as any firm in the country for the housing crisis we're facing today. When Countrywide Financial was sold a few months ago, its top two executives got a combined $19 million. These are the folks who are responsible for infecting the economy and helping to create a home foreclosure crisis….They get a $19 million bonus while people are at risk of losing their home. What's wrong with this picture?"
("They" are Mozilo and the president of Countrywide, David Sambol.)
Around that time the Obama campaign also criticized Clinton for affiliations with Countrywide.
In the Washington Post: "Obama aides also said Clinton is in no position to stiffen oversight after taking contributions from mortgage industry lobbyists, including funds from representatives of Countrywide, which has been at the center of the mortgage meltdown. 'If we're really going to crack down on the practices that caused the credit and housing crises, we're going to need a leader who doesn't owe these industries any favors,' campaign manager David Plouffe said."
On MSNBC, senior Obama strategist David Axelrod criticized how senior Clinton strategist Mark Penn had consulted for Countrywide. "She's stuck him with him through the revelation that his firm was working for Blackwater and working for Countrywide," Ax said (watch HERE.) "And, you know, so, it’s kind of stunning. Remember that the embassy said they weren't sure whether he was there as a representative of his firm or a representative of Senator Clinton. I mean, I think there are issues associated with this. I'm not - you (Keith Olbermann) can use the word hypocrisy, but there are certainly questions that arise from this."
**
Yesterday McCain told Fox News that the presence of Johnson on the Obama campaign "suggests a bit of a contradiction talking about how his campaign is going to be not associated with people like that. Clearly he is very much associated with that."
Shot back the Obama campaign, through spox Tommy Vietor, "It’s the height of hypocrisy for the McCain campaign to try and make this an issue when John Green, one of John McCain’s top advisors, lobbied for Ameriquest, which was one of the nation’s largest subprime lenders and a key player in the mortgage crisis. As President, Senator Obama will crack down on fraudulent lenders and bring real relief to Americans struggling in the grip of the housing crisis—the kind of change that works for the American people.”
The Obama campaign through talking points first reported at Mark Halperin's The Page call this story "overblown and irrelevant...This an overblown story about what appear to be completely above-board transactions. The Wall Street Journal even admits that they don’t have a story-noting that it’s 'impossible' to know the factors that went into these arrangements."
(Note: the Wall Street Journal admits no such thing.)
Continue the talking points: "Americans know that we face a critical choice in this race-and isn’t about the terms of an outside advisor’s loans. This race is about leadership, and which candidate will crack down on fraudulent lenders and bring real relief to Americans struggling in the grip of the housing crisis. Barack Obama has offered a real solution to the housing crisis-John McCain hasn’t."
Subscribe to:
Posts (Atom)