McCain’s Campaign Manager Paid Millions To Help Fannie & Freddie Avoid Tougher Regulations
By Justin Gardner | Related entries in 2008 Election, Bad Decisions, Economy, McCain, Money
And not only that, Rick Davis did it for 5 years and his firm made approximately $1.8M in that time.
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. [...]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.
“The value that he brought to the relationship was the closeness to Senator McCain and the possibility that Senator McCain was going to run for president again,” said Robert McCarson, a former spokesman for Fannie Mae, who said that while he worked there from 2000 to 2002, Fannie Mae and Freddie Mac together paid Mr. Davis’s firm $35,000 a month. Mr. Davis “didn’t really do anything,” Mr. McCarson, a Democrat, said.
Folks, this is pretty massive, especially when you consider how McCain went on the offense last week and claimed Obama had such close ties to Freddie and Fannie. And while the Jim Johnson and Franklin Raines ties don’t look good, they pale in comparison to having McCain’s TOP campaign guy working to make sure these mortgage giants weren’t more closely watched.
Honestly, I don’t see how Rick Davis can survive this. Moreover, one has to believe McCain knew that Davis had these ties. And if not, he was really asleep at the wheel. Any way you slice it, bad news all around for the McCain camp today.
More as it develops…
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September 22nd, 2008 at 9:54 am
“Hunter?”
“Hunter who?”
Huh?
September 22nd, 2008 at 11:21 am
Oh c’mon. If this is “massive” than so is Obama’s connections. Right now it looks like you have a lobbyist representing his client. (Shocking!)
September 22nd, 2008 at 12:06 pm
You talk as if Rick Davis was advising them on creating a better balance between work and life. This was lobbying to specifically protect Freddie and Fannie from more regulations, which is what lead to this $800B mess.
But hey, no big deal…
September 22nd, 2008 at 12:57 pm
It’s not quite as massive as this: http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B63&sec=&spon=&partner=permalink&exprod=permalink
Here is the best part of that article: The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac….
Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.
”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
September 22nd, 2008 at 2:02 pm
Who was he lobbying when he led the Homeownership Alliance? Did he lobby McCain? Why did McCain co-sponsor the Federal Housing Enterprise Regulatory Reform Act of 2005, which would have put tougher restrictions on Fannie and Freddie? Why did the Democrats in Congress fight against it?
Will Justin illuminate us? No, but hey No big deal.
September 22nd, 2008 at 2:04 pm
Chapeau Justin, great find!
James says:
Here is the best part of that article: The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
EV answers:
Oh yes and I so trust investment banker Henry Paulson to get proper and working regulation going. Dream on.
This is huge. Obama has no direct Fannie and Freddie connections thatßs proven and McCain has. I almost admire the cheek of the MacCampaign to say Obama was connected.
Oh and then, I´m living in Switzerland and the banks here were rubbing their hands in anticipation of your taxes to bail them out.
September 23rd, 2008 at 2:40 am
[...] Campaign Manager Paid Millions To Help Fannie & Freddie Avoid Tougher Regulations (Donklephant) / [...]
September 23rd, 2008 at 8:08 am
[...] First Rick Davis and now William Timmons Sr., a guy who lobbied for the troubled mortgage giant for 8 years…right up until last month when the government took over. [...]
September 23rd, 2008 at 6:55 pm
[...] I shared a story about Davis’ lobbying ties to the troubled mortgage giants. And yesterday McCain claimed that his campaign manager [...]