Progressive World Review

James Johnson resigned from Barak Obama’s vice presidential search committee today reports The Washington Post in an article written by Jonathan Weisman.  Johnson, former chief executive of Fannie Mae, has been caught up in a potential scandal involving some controversial below market rate loans he received from loan giant Countrywide Financial, a partner of Fannie Mae,

But the Obama campaign found itself on the defensive after the Wall Street Journal reported Saturday that the former Fannie Mae chief had received millions of dollars in home loans — some of which may have been below average market rates — from Countrywide Financial, a partner of Fannie Mae and a leading purveyor of subprime mortgages.

There are also questions about the pay package Johnson received for his work at Fannie Mae,

The Washington Post reported yesterday that alleged accounting manipulations for 1998 had resulted in maximum payouts to Fannie Mae’s senior executives — $1.9 million in Johnson’s case — when the company’s performance that year would have yielded no bonuses. Even after he left Fannie Mae in 1999, Johnson received millions of dollars in guaranteed consulting fees and perks that included an office, two secretaries and a car and driver for himself and his wife.

While it’s not clear that anything illegal actually happened, Johnson was seen as a liability to the campaign in light of the criticisms Obama has leveled at Countrywide for their part in the subprime mortgage crises.

What is clear is the fact that the Democrats are never going to bring about the change in Washington politics that Obama has promised and voters are so desperate for.  Even though this has hardly been the scandal of the century, Johnson is just another Washington insider with connections that the rest of us will never enjoy.  Obama may have some high ideals and I have little doubt regarding his integrity, all the same, he’s still one more member of a political class that’s completely out of touch with the people they presume to serve.

Money is at the heart of all Washington politics and Obama has raised more than anyone else, especially the Republican contender, John McCain.  While it’s the Republicans that have been the shameless shills for corporate interests the Democrats get their money from the same places virtually guaranteeing that no real change will ever happen in Washington.

Until we remove the money from American politics we can expect more of the same and though Obama will clearly be better for America than either Bush or McCain nothing will ever change as long as money rules the show.  This is why publicly financed campaigns are so vital to preserving our democracy.

–Paul Wilden

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