VP scout on Obama's team just quit...

[Lauri]

I just heard this at the tail end of Rush's show...

Johnson Quits Obama's Vice Presidential Search Team (Update1)

By Julianna Goldman

 June 11 (Bloomberg) -- James Johnson said he is leaving Senator Barack Obama's vice presidential search committee after a newspaper reported he may have received preferential mortgage terms from Countrywide Financial Corp.

Johnson, the former chairman of Fannie Mae, said he was quitting to avoid being a hindrance to Obama's presidential campaign.

``I would not dream of being a party to distracting attention from that historic effort,'' he said in a statement. ``I believe Barack Obama's candidacy for President of the United States is the most exciting and important of my lifetime.''

Johnson, 64, said that he had done nothing wrong, saying ``blatantly false statements and misrepresentations'' had been written about him.

``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,'' Obama said in an e-mailed statement.

Obama said he was ``confident'' that his vice presidential search process would produce ``a number of highly qualified candidates'' in coming weeks.

Johnson was part of a three-person team, along with Caroline Kennedy, the daughter of the late President John F. Kennedy, and former Deputy U.S. Attorney General Eric Holder, who were tapped to help vet prospective running mates for Obama. Johnson, who had run Walter Mondale's 1984 presidential campaign, had helped 2004 Democratic nominee John Kerry in his vice presidential search.

Countrywide Loans

Angelo Mozilo, the chief executive officer of Countrywide, the biggest U.S. home lender, may have given Johnson and other friends good deals on mortgages, the Wall Street Journal reported on June 7, citing unidentified people familiar with the matter. The newspaper did not provide any specifics on whether there were favors granted.

Since then, Johnson's position on the search committee has drawn criticism from Republicans who noted that Obama, the presumptive Democratic nominee, repeatedly denounced Countrywide for its role in the subprime-mortgage crisis.

``These are the folks who are responsible for infecting the economy and helping to create a home-foreclosure crisis -- 2 million people may end up losing their homes,'' Obama said of Countrywide at a March 31 campaign appearance in Lancaster, Pennsylvania.

A Countrywide spokesman didn't immediately return a phone call seeking comment on Johnson's loans. Obama campaign confirmed the statement.

Obama Defends Ties

Obama, 46, an Illinois senator, yesterday defended his campaign's ties to Johnson, an unpaid adviser, saying it wasn't realistic to think aides would be doing extensive checks on everyone connected with his campaign.

``I am not vetting my VP search committee for their mortgages,'' Obama said during a news conference in St. Louis.

Johnson's role at Fannie Mae, where he was chairman from 1991-99, has also come under scrutiny. The Washington Post reported today that executives of the Washington-based company were concerned in 2004 that a consulting arrangement they had with Johnson would be publicized in confirmation hearings.

``I am extremely proud of my service to Fannie Mae and in other important dimensions of public service,'' Johnson said in his statement.

Holder has also come under fire from Republicans for his role in the 2001 pardon of commodities trader Marc Rich.

One possible candidate if the Obama campaign decides to replace Johnson could be former Senate Majority Leader Tom Daschle, a national campaign co-chair for Obama.

To contact the reporter on this story: Julianna Goldman in Washington at jgoldman6@bloomberg.net

Last Updated: June 11, 2008 14:42 EDT

Obama is really upping the body count, isnt he? 

[USA4ME]

Good.  One down, more to follow.

.

[Lauri]

does Obama know what he's just done? he basically just admitted, he doesnt do background checks on people - ergo, he just told us what his means for covering his ass down the road will be.

reporter: "Mr President, how do you address the fact that the minister of Interior just gave away the ANWR to China?"

Obama: "well, like ive said before about the secretary of transportation who sold our highways to the highest bidder in Dubai, and the secretary of defense who sold secrets to India, I didnt vet these people. I just trusted them. So sue me."

[DixieBelle]

Scary isn't it?

If you think about it, he only served how many days in the Senate? And he thinks he's ready to be CIC?

[Lacarnut]

Good.  One down, more to follow.

.

True, Obama campaign for Prez is not getting off to a good start. This amateur will give us plenty more faux pas.

[Chris_]

He better get the suspension checked out on that bus.  All those people he's throwing under it are sure to cause some wear and tear.

[RGSG99]

Obamessiah sure surrounds himself with some interesting people, doesn't he?

[Jim]

the other Clinton holdover will be out soon leaving (I could never have guess I'd be saying this) the Paula Abdul of the triumvirate, Caroline the K !   you can't make stuff like this up !