Power Broker Helps Obama Search for Running Mate [May 24, 2008] [James Johnson, Fannie Mae CEO]

Wall Street Journal ^ | May 24, 2008 | T.W. Farnam

[B Knotts]

WASHINGTON -- Sen. Barack Obama may want to shake up Washington, but the man organizing his search for a running mate is a well-established power-broker.

James Johnson spent eight years as chief executive of Fannie Mae, building up one of Washington's most-effective lobbying operations. Fannie Mae, along with Freddie Mac, are government-sponsored companies that provide the bulk of funding for U.S. home loans. Many viewed Mr. Johnson as the chief protector of Fannie's federal support, which includes an implied backing of its bonds, a line of credit with the Treasury and an exemption from state and local taxes.

...

Mr. Johnson left Fannie Mae in 1998. An investigation by the Office of Federal Housing Enterprise Oversight, which oversees the company, found it had manipulated earnings that year to make targets that increased executive compensation, including a $1.9 million bonus for Mr. Johnson. Franklin Raines, Mr. Johnson's successor, has denied that the accounting decisions were aimed at increasing compensation.

[B Knotts]

There is a lot of talk about whether or not Franklin Raines is really an advisor to Obama, and his campaign is trying to distance him from Obama. But, let's not take the eye off the ball. We should also be pointing out that the previous Fannie Mae CEO headed Obama's ill-fated VP candidate search, which resulted in the laughable pick of Joe ("let no thought go unexpressed") Biden.

[BigEdLB]

Helped pick Joe Biden? ... Frankiln Raines, Stand Up.... O my Goodness, what am I saying?

[D-fendr]

>>>”chief executive of Fannie Mae, building up one of Washington’s most-effective lobbying operations. Fannie Mae, along with Freddie Mac, are government-sponsored companies that provide the bulk of funding for U.S. home loans.

Seems really wrong to me for these orgs to be allowed to lobby.

[CycloneGOP]

Hello?? You bet Johnson and Raines have had major roles in ZERO’s so-called policies.

Now....get the word out!!

[D-fendr]

Welcome to FreeRepublic.

[B Knotts]

McCain mentioned this in his speech today in Green Bay.

[nclaurel]

If there is a question about Raines or Johnson, let’s go to a mouth piece of the DNC. Would Washington Compost lie about their man:

On July 16, 2008, The Washington Post reported that Franklin Raines had “taken calls from Barack Obama’s presidential campaign seeking his advice on mortgage and housing policy matters.” Also, in an editorial in August 27, 2008 titled “Tough Decision Coming”, the Washington Post editorial staff claimed that “Two members of Mr. Obama’s political circle, James A. Johnson and Franklin D. Raines, are former chief executives of Fannie Mae.”

[B Knotts]

I saw that story, but Obama is now trying to claim that the Post’s source for Raines’ connection to the Obama campaign was Raines himself.

I don’t believe that for a second; I’m sure Raines and Obama are probably pretty close, but Obama cannot deny that Johnson was not connected to his campaign, since he headed his VP candidate search.

Granted, Raines was allegedly even more corrupt than Johnson, but both connections hurt Obama.

[nclaurel]

I think Raines is a crook, but not stupid enough to not know who called him. Obama really isn’t bothered by obvious lies.