Loan Titans Paid McCain Adviser Nearly $2 Million

[kpete]

Source: New York Times

Loan Titans Paid McCain Adviser Nearly $2 Million

By DAVID D. KIRKPATRICK and CHARLES DUHIGG
Published: September 21, 2008

Senator John McCain’s campaign manager was paid more than $30,000 a month for five years as president of an advocacy group set up by the mortgage giants Fannie Mae and Freddie Mac to defend them against stricter regulations, current and former officials say.

Mr. McCain, the Republican candidate for president, has recently begun campaigning as a critic of the two companies and the lobbying army that helped them evade greater regulation as they began buying riskier mortgages with implicit federal backing. He and his Democratic rival, Senator Barack Obama, have donors and advisers who are tied to the companies.

But last week the McCain campaign stepped up a running battle of guilt by association when it began broadcasting commercials trying to link Mr. Obama directly to the government bailout of the mortgage giants this month by charging that he takes advice from Fannie Mae’s former chief executive, Franklin Raines, an assertion both Mr. Raines and the Obama campaign dispute.

Incensed by the advertisements, several current and former executives of the companies came forward to discuss the role that Rick Davis, Mr. McCain’s campaign manager and longtime adviser, played in helping Fannie Mae and Freddie Mac beat back regulatory challenges when he served as president of their advocacy group, the Homeownership Alliance, formed in the summer of 2000. Some who came forward were Democrats, but Republicans, speaking on the condition of anonymity, confirmed their descriptions.

Read more: http://www.nytimes.com/2008/09/22/us/politics/22mccain.html?_r=2&ei=5070&adxnnl=1&oref=slogin&emc=eta1&adxnnlx=1222060553-GdFNzk8H+RySSUcVaIJ0WA

[democracy1st]

1. thanks kpete ur on it ...K & R

[Trillo]

2. I saw a McCain ad the other day on TV (maybe yesterday)

I swear he was speechifying just like a populist. I don't remember the exact words, but he talked about dirty Wall Street! Uh huh.

Ah, here's the quote from AP:

"Enough is enough. "I'll meet this financial crisis head on. Reform Wall Street. New rules for fairness and honesty. I won't tolerate a system that puts you and your family at risk. Your savings, your jobs — I'll keep them safe."

:rofl:

[crossroads]

9. Sounds like he's running against himself! lol nt

[RamboLiberal]

3. Obama needs to run an ad on this - n/t

[Democat]

4. If Obama runs an ad then the media may run with it

Make news every day, Obama!

[starroute]

5. McCain adviser Wayne Berman also had dubious dealings with Freddie

Since this is from an FEC case, I assume the 4-paragraph rule doesn't apply and have quoted at somewhat greater length. When I first ran into this story, I was looking for evidence of Republican dirty dealing in connection with the 2002 elections. But now I'm wondering just what favors Freddie was buying with its donation and whether they got any particular plums in early 2003.

http://eqs.sdrdc.com/eqsdocs/000051B2.pdf

In February 2002, Wayne Berman, the Honorary Finance Chairman of the Republican Governors Association (“RGA”) and a consultant hired by Freddie Mac, approached Mr. Delk and asked Freddie Mac to make a $250,000 donation to the RGA. At that time, the RGA was a part of the Republican National Committee and solicited funds for the Republican National Committee’s Eisenhower Building Fund. Prior to the Bipartisan Campaign Reform Act (“BCRA”), Freddie Mac was able to make donations to national parties via the “building fund exemption.”

At the suggestion of Mr. Berman, Freddie Mac divided its donation into two parts so that Freddie Mac could participate in events scheduled for February 2002 and November 2002.

On March 4,2002, Mr. Berman sent a statement to Mr. Delk requesting a check in the amount of $100,000 made payable to the “Republican Governors Association Eisenhower Building Fund.” Freddie Mac sent the check as requested along with a cover letter notifying the recipient that the funds could only be used for building fund purposes.

On October 24,2002, the RGA sent Freddie Mac a statement requesting the remainder of the donation, or $150,000. At this point, the RGA, in anticipation of the changes in campaign finance law as a result of BCRA, was no longer affiliated with the RNC and, most importantly, was no longer soliciting donations to the Eisenhower Building Fund. As a result, the RGA statement specified that the check be made payable to the “Republican Governors Association.”

According to Mr. Delk’s secretary, when she received the October 24, 2002, statement, she asked Mr. Delk for instructions. Mr. Delk told her to process the contribution by completing a check requisition form. She completed the form seeking a $150,000 check fiom Freddie Mac made payable to the RGA, signed Mr. Delk’s name, and submitted the form.

Mr. Delk presented the check, allegedly with a letter stating that the contribution could only be used for building fimd purposes, to Mr. Berman. Mr. Berman took the check, which the RGA attributed to Mr. Delk, and deposited it into its operating account.

On October 31,2002, John Rowland, the chairman of the RGA, sent Mr. Delk a letter thanking him for his generosity, which would enable the RGA to “invest in crucial last-minute TV and radio ads, polling, get-out-the-vote, and direct candidate support in many of our key races and provide our candidates with the support they need to win.”

According to Mr. Delk, in the summer of 2003 he learned that the RGA did not put the contribution into a building fund account. As a result, Freddie Mac asked the RGA to return the donation, which it did on June 11, 2003, approximately eight months after the contribution had been made.

[SOS]

6. McCain's got some nerve

kick

[Muttocracy]

7. afternoon kick. nt

[gratuitous]

8. Gee, what did the campaign manager do for all that money?

McCain is trying to sell the idea that Davis didn't do nuthin' for $30,000 a month. Uh huh, sure. I know that astute businesspeople pay folks five figures a month to not do a goddam thing all the time. And just because Rick Davis was pocketing all that money, don't think for a second that he did anything to earn or deserve it. It just, you know, happened. Money fell out of the sky and into Rick Davis' wallet. Nothing so very strange about that. Why are you asking so many questions? Don't you know John McCain was a POW? Are you saying that you hate POWs? Because that's what I'm hearing.