The Justice Department is investigating possible fraud in the meltdown of AIG, Lehman, Fannie Mae, and Freddie Mac. There is a strong possibility that this will not turn out well for Obama and his fellow Democrats. For further information read this story:
Fannie Mae and Freddie Mac are time bombs for the Democratic party. Over the last nine years, the top five congressional recipients of contributions form these two corporations were Democrats. The list, according to Free Republic is as follows:
1. Dodd, Christopher J Senate D-CT $133,900
2. Kerry, John Senate D-MA $111,000
3. Obama, Barack Senate D-IL $105,849
4. Clinton, Hillary Senate D-NY $75,550
5. Kanjorski, Paul E House D-PA $65,500
Notice number 3. Senator Obama was able to make it to third on the list in only three years. This is impressive. Talk about over-achieving. Just imagine what he could of done if he’d been in there for the full nine years. Further, 7 of the top 10 were Democratic Congressional members.
Now the investigation is probably not going to focus on congressional contributions but it will keep the story alive and let us, and Fox News, and Drudge, etc to continue talking about it, day after day after day. Who knows, things may get so crazy, the MSM may even mention it.
Another thing that may be brought up again is the comfy relationship Democratic members of Congress have had with mortgage lenders, including cozy loans.
Finally, there is a real risk for Obama in the investigation itself.
There is a slight risk that his name could come up. He has had significant ties to these companies. It would not look good for his name to show up in a memo or e-mail.
The major damage to Obama though, could come from the people that will be investigated. Three people with close ties to the Obama campaign, sometimes acting as advisors, will likely be investigated. More importantly, they have each had their own controversies at the company.
Franklin Raines is the former Chairman and CEO of Fannie Mae. Though both Obama and Raines deny the accusations, there has been strong speculation that Raines has advised Obama on policy.
Jamie Gorelick was Vice Chairman of Fannie Mae and walked away with as much as $26 million. There are strong indications that she helped cover up problems by staffers at the company. Her ties to Obama aren’t as strong as the other two but there are rumors that she is in line for Attorney General, having served as assistant under Janet Reno.
Finally, we have James Johnson. Johnson is the former Chairman of Fannie Mae and will likely have his own questions to answer about his tenure there. More significantly for this discussion, there are strong ties between Obama and Johnson. Johnson has been an economic advisor to Obama and led his VP search committee initially. Johnson had to leave the search team after it was revealed that he had gotten questionable loans from Countrywide Mortgage Lender, preferred mortgage company of most Democratic politicians. Obama, showing his commitment to maintaining high ethical standards responded to the controversy by saying “I am not vetting my VP search committee for their mortgages.” Story here:
I think this is why Obama has been so vocal about attacking McCain about these failures. He is trying to get out ahead of the story and lessen the damage to himself. I think though that in the words of the good Reverend Jeremiah Wright, Obama’s chickens are coming home to roost.