Obama Aid Steps Down Over Countrywide Stir
Wednesday, June 18, 2008
by Michael Peron
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James A. Johnson, a top aid to Senator and presidential candidate Barack Obama (D-IL), announced Thursday that he’s stepping down from his position within the campaign to prevent a recent stir related to home loans he received from Countrywide Financial Corp. in order to keep from hindering Obama's bid for the White House, according to the Wall Street Journal.
Johnson was called out by the Republican National Committee last week after they alleged he received special privileges on loans originated by Countrywide because of his connection to the company’s CEO Angelo Mozilo.
WSJ reported Johnson receiving more than 5 million dollars in loans from Countrywide between 1998 and 2007.
Another benefiter was Franklin Raines, former budget director to President Clinton, and whose name was no stranger to the headlines due to his involvement with a Fannie Mae accounting scandal in 2004. The former Fannie CEO faced charges for allegedly mismanaging finances, releasing inaccurate financial statements, and continuing to operate with accounting functions that were unsound and inefficient.
Raines agreed to a settlement with the Office of Federal Housing Enterprise and Oversight (OFHEO) in mid-April, where he agreed to pay out $24.7 million. OFHEO says $2 million will go to the government, $1.8 million will be funneled to housing programs that are trying to saved distressed borrowers, $15.6 million will be paid out in relation to “surrender and relinquishment of claims,” while $5.3 million will go to other “benefits lost in association,” OFHEO said.
Johnson, an unpaid advisor to Obama and former Fannie chairman from 1991 to 1998, has been tied to Countrywide through the company's "Friends of Angelo" program which “arranged loans for friends of Chairman and Chief Executive Angelo Mozilo at attractive rates,” reported the WSJ.
In a statement provided by the WSJ, Obama said: “Jim did not want to distract in any way from the very important task of gathering information about my vice presidential nominee, so he has made a decision to step aside that I accept."Kerri Panchuk | 06.12.08
Johnson was called out by the Republican National Committee last week after they alleged he received special privileges on loans originated by Countrywide because of his connection to the company’s CEO Angelo Mozilo.
WSJ reported Johnson receiving more than 5 million dollars in loans from Countrywide between 1998 and 2007.
Another benefiter was Franklin Raines, former budget director to President Clinton, and whose name was no stranger to the headlines due to his involvement with a Fannie Mae accounting scandal in 2004. The former Fannie CEO faced charges for allegedly mismanaging finances, releasing inaccurate financial statements, and continuing to operate with accounting functions that were unsound and inefficient.
Raines agreed to a settlement with the Office of Federal Housing Enterprise and Oversight (OFHEO) in mid-April, where he agreed to pay out $24.7 million. OFHEO says $2 million will go to the government, $1.8 million will be funneled to housing programs that are trying to saved distressed borrowers, $15.6 million will be paid out in relation to “surrender and relinquishment of claims,” while $5.3 million will go to other “benefits lost in association,” OFHEO said.
Johnson, an unpaid advisor to Obama and former Fannie chairman from 1991 to 1998, has been tied to Countrywide through the company's "Friends of Angelo" program which “arranged loans for friends of Chairman and Chief Executive Angelo Mozilo at attractive rates,” reported the WSJ.
In a statement provided by the WSJ, Obama said: “Jim did not want to distract in any way from the very important task of gathering information about my vice presidential nominee, so he has made a decision to step aside that I accept."Kerri Panchuk | 06.12.08
