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Go Home Fannie And Freddie Strike Back

THE PLANK SEPTEMBER 22, 2008

Fannie And Freddie Strike Back

From today's NYT:

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.

As the article goes on to report, Davis doesn't appear to have had much influence on McCain on the issue. (His only notable achievement was getting McCain to attend an awards banquet for the group.) This seems similar to the role Davis played as a lobbyist for DHL, when he tried to rally support for its acquistion of Airborne Express in 2003--which, as I explain in the current print issue, has become a problem for the McCain campaign in Ohio (where DHL is about to close a major freight hub). 

I can understand why Davis did what he did: It's not every job that pays you close to $2 million for not really doing anything. But why does McCain keep leaving himself vulnerable to these Davis-related attacks? It's not like Davis is even running his campaign any more--that's Steve Schmidt's job--and yet he still retains the title "campaign manager." I guess the best thing you can say about McCain here is that he's loyal.

--Jason Zengerle 

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7 comments

The frustrating thing about this issue is that McCain was actually right on increased scrutiny of Fannie and Freddie.  He co-sponsored a bill in 2005 to reign in the housing gse's that was killed in Chris Dodd's committee.

It would be ironic, to say the least, if McCain were to get tarred with something that isn't actually his or Republicans' fault.

- ryanburke

September 22, 2008 at 10:51am

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The frustrating thing about this issue is that McCain was actually right on increased scrutiny of Fannie and Freddie.  He co-sponsored a bill in 2005 to reign in the housing gse's that was killed in Chris Dodd's committee.

It would be ironic, to say the least, if McCain were to get tarred with something that isn't actually his or Republicans' fault.

- ryanburke

September 22, 2008 at 10:51am

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It's tough to follow the musical chairs on McCain's campaign staffs since '00. I think he was getting to the bottom of the barrel and running out of time once again, but "best for the job" is loosely defined by John. The latest shuffle was more of the "need money, lack direction" sort of decision making that is so salient and I'd suggest expedient trumps loyalty in McCain's brain. He's able to compartmentalize choices, from relationships with lobbyists to Palin so the negative are ignored. I wonder how his personality fits a person who has a gambling problem, specifically with craps...Is he really loyal (until he sacks someone) or is it the ol' crap superstition of not changing dice in the middle of a roll?

- michael

September 22, 2008 at 10:58am

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Or McCain thinks that he can get away with anything because "he's an original maverick". He hasn't exactly paid a lot of respect to the truth in other parts of his campaign.

- JEFF FREY

September 22, 2008 at 11:27am

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Ryan, in 2005 it wasn't Chris Dodd's committee though, it was, I think, Richard Shelby's Committee (if you mean US Senate Banking), in a Senate with a 55-45 GOP majority.  So I highly doubt this was all Chris Dodd's fault here.

- Crock1701

September 22, 2008 at 11:30am

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Good point, Crock. In fact, you might say that if the fault lay in the committee, it would be with the Republican majority! Maybe Ryan can try again.

- JEFF FREY

September 22, 2008 at 11:48am

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My mistake - cancel that forgiveness for Republicans in general.

- ryanburke

September 22, 2008 at 11:54am

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