The New York Times news alert I got yesterday in my inbox told me the following:

One of the giant mortgage companies at the heart of the credit crisis paid $15,000 a month to a firm owned by Senator John McCain’s campaign manager from the end of 2005 through last month, according to two people with direct knowledge of the arrangement. The disclosure contradicts a statement Sunday night by Mr. McCain that the campaign manager, Rick Davis, had no involvement with the company for the last several years.

Yikes.

In the New York Times article McCain aide’s firm was paid by Freddie Mac:

They said they did not recall Mr. Davis doing much substantive work for the company in return for the money, other than speak to a political action committee composed of high-ranking employees in October 2006 on the coming midterm congressional elections. They said Mr. Davis’s his firm, Davis & Manafort, was kept on the payroll because of Mr. Davis’s close ties to Mr. McCain, the Republican presidential nominee, who was widely expected by 2006 to run again for the White House.

Double yikes. Bad enough his business was getting money from Freddie Mac — but getting paid for apparently while not doing any lobbying? And then, Sen. McCain ended up not telling the truth about Rick Davis’s involvement with Freddie Mac.

Given the proposed $700 billion bailout of the banking industry where Fannie Mae and Freddie Mac are part of the nation’s economic meltdown, this story has the potential of being a pretty significant scandal.

Below the fold: Rachel Maddow interviews one of the two writers of the New York Times article.

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Autumn Sandeen

Autumn Sandeen

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