Update: Obama severs his Countrywide connection

Breaking news from the Associated Press: The Obama campaign has just announced that Jim Johnson, who received special loans from Countrywide under a "friends of Angelo" (Mozilo) program, has quit the campaign. From the A.P.: "A leader of Democrat Barack Obama's vice presidential research team has resigned amid criticism over his personal loan deals.  Obama announced in a statement Wednesday that Jim Johnson was stepping aside to avoid distracting from the vetting process."

My colleague Andy Malcolm is all over the story at Top of the Ticket.

Obama had defended his selection of Johnson yesterday, pointing out that Johnson was an unpaid volunteer. But his defense, according to the influential Dan Balz of the Washington Post, raised more questions about Johnson's role. Balz wrote "for Obama to suggest that Johnson is floating in some outer orbit of his campaign raises questions about the candidate's willingness to deal forthrightly with controversy."

The Wall Street Journal broke this story over the weekend and I linked to it because I thought it was important. For that I received all manner of negative feedback from supporters of Obama.  So I'm hereby inviting my good friends in the Obama camp to weigh in again. Come on back, folks.

Mike wrote, "The author of this should be fired. What horrible journalism." Mike?

Paul Hiller wrote, "This is a cheap shot ... show me some proof before you make allegations that this is a sweetheart deal" Paul?

Zooey wrote,  "Do your homework Mr. Viles, lest you further erode the Los Angeles Times journalistic reputation..." Zooey?

Ruri wrote, "The only news sources pushing this smear have been Murdoch mouthpieces: The Sun, the WSJ, and Fox news." Ruri?

Ben wrote, "...  this is a pathetic story. Friend of a friend took some big real estate loans at low rates? Boo, author." Ben?

Christopher Robin wrote, "This blog is typical vapor news from the mouthpieces of the repugs. Please dig deeper and make a more convincing case next time. A second grader could have done this well! (Sorry to insult the second grader, but what passes as journalism these days is a very low bar.)" Chris?

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Photo Credit: Associated Press

Comments

[peteviles]

problemwithcaring writes, "... if the Blogger didn't understand the implications of these articles and headlines..."

Thanks, problem. I understand them -- I write the headlines. The Johnson problem was pretty obvious as soon as the Journal reported he was a "friend of Angelo" -- it had nothing to do with whether the loans were improper, let alone illegal. It had to do with the contradiction between Obama's campaign rhetoric and the reality of who Jim Johnson is. Johnson is able, well-respected, and of a piece with old Washington ways. Obama has campaigned as the man who will break those ways. Obama has been critical of Countrywide, Johnson is friendly with Countrywide's embattled chairman. Obama has been critical of corporate America, Johnson embodies the system that gives us $21 million-a-year CEOs. Nothing wrong with that, it's the American way, it's just not consistent with Obama's campaign.

We disagree about the original Journal story -- I thought it was a solid piece of reporting relevant to the campaign, and it appears Johnson and Obama reluctantly agree. The Journal's follow up today is worth reading too.

[the problemwithcaring]

Obama has been critical of Countrywide, Johnson is friendly with Countrywide's embattled chairman. Obama has been critical of corporate America, Johnson embodies the system that gives us $21 million-a-year CEOs. Nothing wrong with that, it's the American way, it's just not consistent with Obama's campaign.
Posted by: peteviles | June 12, 2008 at 01:05 PM

....some context, 25 post down in the comments of the second post on the subject is better than never, I suppose...

The point you seem to be missing is that being critical of corporate America isn't inconsistent with hiring people who have worked in corporate America for advisory positions or other non-policy making roles. It's what successful presidents have always done...

This ambiguous demonization by you and others over what someone "embodies" sorta proves my point about how this "guilt-by-association" meme salaciously feeds upon itself through circular reasoning/justification. Your "His campaign brought it on itself" rationale is incomplete. Brought What on itself exactly? Lazy and incomplete reporting?

I mean, by such flimsy logic, Obama as critical of the Iraq War, would have a "problem" should he seek the advice of anyone in the military. Yea, that's not logic - that's a GOP talking point.

Anyway, thanks for responding -- carry on.

[normanpheeny]

Looks like Chris Dodd and Kent Conrad are also part of the FOA benificiary list: http://www.portfolio.com/news-markets/top-5/2008/
06/12/Countrywide-Loan-Scandal?rss=true. Hmmm. Looks like we can strick Dodd from Obama's short list of VP's!