Davis Death Watch Begins… Now!

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A half dozen news outlets have the story today of the dirty dealing of John McCain’s campaign manager, Rick Davis. It appears Freddie Mac kept Davis’ firm, Davis Manafort, on contract to the tune of $15,000 a month up until Freddie was bailed out by the federal government and its lobbying contracts were forcibly dissolved.

What did Davis and his firm do for Freddie? Nothing. He was kept around explicitly because of his proximity to McCain.

Newsweek explains that after Davis’ arrangement with the Homeownership Alliance, a lobbying group funded by Freddie and Fannie that was headed by Davis and fought for less regulation, was nixed, Davis went to Freddie to get more cash.

Davis himself approached Freddie Mac in 2006 and asked for a new consulting arrangement that would allow his firm to continue to be paid. The arrangement was approved by Hollis McLoughlin, Freddie Mac’s senior vice president for external relations, because “[Davis] was John McCain’s campaign manager and it was felt you couldn’t say no,” said one of the sources.

It appears Davis got paid exclusively because of his connections to McCain, who was widely perceived as running for president in a few short years. He didn’t do any actual work to earn the $15,000 a month. Again, Newsweek:

Freddie Mac has had no contact with Davis Manafort other than receiving monthly invoices from the firm and paying them.

The account is bolstered by the New York Times:

[Sources] 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.

Oh, and the Times makes sure to note:

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.

The fact that Davis exploited his positions within McCain’s inner circle for financial gain is bad enough. But don’t forget that: (1) McCain has fingered lobbyists as central players in Fannie and Freddie’s failures and in the financial industry meltdown. Yet one of his top people very recently played that role. And (2) McCain was asked about Davis’ work with the Homeownership Alliance in an interview Sunday and responded that Davis “has had nothing to do with it since.” That’s false. Either McCain was lying or Davis lied to McCain.

So… Davis gets fired when?

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

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