The Statement: speech by Republican presidential candidate John McCain
Title: “Our Financial Markets”
From: McCain campaign
Type: Stump Speech
Date: Speech delivered Sept. 19, 2008 in Green Bay, Wis., to members of the Green Bay Chamber of Commerce
URL: http://www.johnmccain.com/Informing/News/Speeches/9a604256-0519-46e6-a1ce-e70798b39ec2.htm
What It Says
In his speech to the Green Bay, Wis., Chamber of Commerce, John McCain staked a claim to predicting the failures of the quasi-governmental mortgage giants Fannie Mae and Freddie Mac. He linked his opponent, Democrat Barack Obama, to controversial CEOs who headed Fannie Mae and Freddie Mac.
Here’s what McCain said:
“Two years ago, I called for reform of this corruption at Fannie Mae and Freddie Mac. Congress did nothing. The Administration did nothing. Senator Obama did nothing, and actually profited from this system of abuse and scandal. While Fannie and Freddie were working to keep Congress away from their house of cards, Senator Obama was taking their money. He got more, in fact, than any other member of Congress, except for the Democratic chairmen of the committee that oversees them. And while Fannie Mae was betraying the public trust, somehow its former CEO had managed to gain my opponent’s trust to the point that Senator Obama actually put him in charge of his vice presidential search.”
The Facts:
- “Two years ago, I called for reform of this corruption at Fannie Mae and Freddie Mac. Congress did nothing. The Administration did nothing. Senator Obama did nothing.”
This statement is partially accurate. McCain did join in calls for more regulation of mortgage giants Fannie Mae and Freddie Mac. In 2006, McCain became one of three co-sponsors to a bill called the “Federal Enterprise Regulatory Reform Act.” It was written by Sen. Chuck Hagel, R-Neb. The bill was presented to the Senate Committee on Banking, Housing and Urban Affairs. To see the full text of the bill click here.
congress/bill.xpd?bill=s109-190″>www.govtrack.us/congress/bill.xpd?bill=s109-190
The bill never left committee. And neither the Bush Administration nor Sen. Barack Obama, the Democratic nominee for president, took independent action to seek changes in Fannie and Freddie’s operations.
But Obama was not a member of the Banking, Housing and Urban Affairs committee, the committee most directly related to the mortgage giants. To say he “did nothing” is technically accurate.
- “While Fannie and Freddie were working to keep Congress away from their house of cards, Senator Obama was taking their money. He got more, in fact than any other member of Congress, except for the Democratic chairmen of the committee that oversees them.”
This statement is partially accurate. Between 2004 and 2007, Obama did receive money from political action committees (PACs) associated with Fannie Mae and Freddie Mac. But so did more than 150 members of Congress this year. McCain was not among those who got money from the PACs.
http://www.opensecrets.org/pacs/pacgot.php?cmte=C00393520&cycle=2008
http://www.opensecrets.org/pacs/pacgot.php?cmte=C00404129&cycle=2008
Between 2004 and 2007, Obama received $105,849 from Fannie Mae and Freddie Mac PACs. But Obama stopped taking money from Fannie Mae and Freddie Mac in 2007. Obama received the third most money from Fannie Mae and Freddie Mac– not the second most, as McCain alleged.
Ahead of Obama were Christopher Dodd, D-Conn., head of the Banking, Housing and Urban Affairs committee, and John Kerry, D-Mass. Dodd received $133,900, and Kerry received $111,000. The money that Obama received was spread out over the course of three years and is not a particularly large portion of the $454 million he has raised for his presidential campaign to date.
- “And while Fannie Mae was betraying public trust, somehow its former CEO had managed to gain my opponent’s trust to the point that Senator Obama actually put him in charge of his vice presidential search.”
This statement is misleading. In this portion of his speech, McCain is referring to Jim Johnson, who was CEO of Fannie Mae from 1991 to 1998. Before that time he served as presidential candidate, Walter Mondale’s, campaign manager. And since that time, he has helped presidential candidate John Kerry choose his vice president.
Johnson was one of several advisors Obama tapped to help him choose a nominee for vice president. He was not the sole person in charge of choosing a vice presidential nominee. In June, Johnson resigned from his position in the Obama campaign after questions arose about his relations with Countrywide Financial Corp when he was CEO of Fannie Mae.
Because he left the campaign in June, it is unlikely that Johnson had a significant role in choosing Obama’s running mate.
It is also worth noting that McCain’s own campaign manager Rick Davis was president of Homeownership Alliance, a lobby firm for Fannie Mae and Freddie Mac that sought to prevent regulation of the housing market.
Conclusion:
This portion of Republican presidential candidate John McCain’s speech is partially accurate. In his speech McCain is trying to link Democratic hopeful Barack Obama to the troubled mortgage giants, Fannie Mae and Freddie Mac. But he exaggerates these ties. Both McCain and Obama have links to the organizations. And both have employed people close to the mortgage industry in top positions in their campaign.
(Ashley Pettigrew is a senior with dual majors in newspaper journalism and policy studies.)
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