Franklin Raines Overtakes William Ayers Role of Albatross Around Obama's Neck

Franklin Raines is the latest individual to become fodder in the increasing election hostilities. Fannie Mae's vice chairman for five years, Franklin Raines accepted Bill Clinton's appointment as head of the U.S. Office of Management and Budget. After two years he left, and went back to Fannie Mae as CEO.

So far, so good. The Franklin Raines - Obama connection is made when the Washington Post reported that Franklin Raines received calls from the Obama campaign with respect to housing and mortgage lending issues. The Post suggests that Obama was seeking advice on policy matters related to these topics.

It is the interim between 1998 and 2008 that makes this a bit of troublesome news for Obama and his camp, and might just serve to dislodge William Ayers as the most visible albatross around the presidential hopeful's neck.

William Ayers, as recapped by Fox News, was a member of the radical Weather Underground that is known for its militant agenda; Ayers is a personal friend and associate of Barack Obama through the Woods Foundation, harkening the relationship back to Obama's former community organizer days.

Fast forwarding to today, stories have resurfaced that in 2004 Franklin Raines came under scrutiny of the Securities and Exchange Commission (SEC) as well as the Office of Federal Housing Enterprise Oversight (OFHEO) when it became obvious that Fannie Mae had massaged the numbers and manipulated its earnings.

As early as 1998 there are allegations of losses being deferred in favor of bonus targets being met; conversely, 2001 is the year when earnings were manipulated to build up a rainy day fund. OFHEO reveals that Frank Raines received $90 million in remuneration between 1998 and 2003, but $52 million were dependent on the bonus target achievement.

The issues were eventually settled with slaps on the wrists all the way around and Franklin Raines denying any culpability. Not much might have come from this situation, had not Franklin Raines been connected to Obama in the wake of the Fannie Mae governmental bailout that now leaves the government holding a huge chunk of American mortgages.

Additionally, all might be water under the bridge were there not the problem with Franklin Raines and James Johnson, both of Fannie Mae chief executive fame, being tied again to Barack Obama's inner circle by the Washington Post in late August. It was not until Newsweek reported on a denial of the Franklin Raines Obama connection that would have the Apostle Peter blush in reminiscence as the rooster crows, that the story gained attention.

Apparently Barack Obama now asserts that Franklin Raines never served in any advisory capacity to the Obama campaign. This begs the question just how many more somewhat questionable allegiances and contacts the voting public will see dragged from Senator Obama's closet. Additionally, it makes voters wonder if there is a chance that the media is making more of this association than truly took place.

Although mere guilt by association is a rather precarious precipice from which to hang one's political opinion, the number of questionable characters in Obama's inner circle are beginning to pile up to such an extent that it is hard to separate truth from fiction, hype from reality, and implication from innuendo.

Source:
http://www.washingtonpost.com/wp-dyn/content/article/2008/07/15/AR2008071502827.html
http://www.ofheo.gov/media/pdf/lockharttestimony61506.pdf
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/27/AR2008082703021.html
http://blog.newsweek.com/blogs/stumper/archive/2008/09/19/obama-fights-fire-with-fire-predictably-enough-that-whole-postpartisan-thing-was-never-going-to-work-out-was-it.aspx
http://www.foxnews.com/story/0,2933,355673,00.html