Contrary to John McCain’s statement that his campaign manager had no involvement with Freddie Mac for the past several years, the bailed-out lender actually paid $15,000 a month for nearly three years to Rick Davis’ firm. Davis reportedly wasn’t doing much work with the firm and had stopped taking a salary there as of 2006, but it does seem Freddie Mac kept Davis’ firm on its payroll to try to influence John McCain’s views on the housing crisis.
Expect the Obama campaign to have a seven-houses-type field day with this. Never mind that Senator Biden’s caught in a similarly tangential scandal: his son Hunter’s firm lobbied Senator Biden’s office, even though Hunter, himself, supposedly didn’t participate in these activities.
NY Times: One of the giant mortgage companies at the heart of the credit crisis paid $15,000 a month from the end of 2005 through last month to a firm owned by Senator John McCain‘s campaign manager [Rick Davis], according to two people with direct knowledge of the arrangement…
They said they did not recall Mr. Davis’s doing much substantive work for the company in return for the money, other than to speak to a political action committee of high-ranking employees in October 2006 on the approaching midterm Congressional elections. They said Mr. Davis’s firm, Davis Manafort, had been kept on the payroll because of his close ties to Mr. McCain, the Republican presidential nominee, who by 2006 was widely expected to run again for the White House.
Mr. Davis took a leave from Davis Manafort for the presidential campaign, but as an equity holder continues to benefit from its income. No one at Davis Manafort other than Mr. Davis was involved in efforts on Freddie Mac’s behalf, the people familiar with the arrangement said.
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