In addition to fears that he may anger fiscal conservatives, McCain must be wary of attacks from Democrats, who have already signaled an intention to paint him as unsympathetic to homeowners in need.
In March, both Obama and then-candidate Hillary Rodham Clinton attacked McCain when he said in a speech, "It is not the duty of government to bail out and reward those who act irresponsibly." McCain later issued a statement saying that government did, in fact, have a responsibility to help deserving homeowners at risk of foreclosure.
Now, Democrats would welcome an opportunity to accuse McCain of leaping to ensure safety for two big companies while agreeing only reluctantly that homeowners need relief.
Part of McCain's problem in navigating the politics of a rescue plan is that he has criticized government-backed companies in the past.
"It's an issue that would have been a no-brainer for McCain back when he was the maverick fiscal conservative from Arizona," said Steve Ellis, vice president of Taxpayers for Common Sense, a nonpartisan budget watchdog group. He said McCain had generally espoused a "no bailout, tough-love philosophy" when it came to government intervention.
Complicating matters for both McCain and Obama is the continuing political might of Fannie Mae and Freddie Mac.
Though the lobbying power of the firms has declined amid the housing market downturn -- Fannie Mae spent $5.6 million on lobbying in the Capitol in 2007, down from $10.1 million the year before, according to the Center for Responsive Politics -- it still wields considerable clout.
Such sums have given the company bipartisan influence, with lobbying and consulting contracts spread among Democrats and Republicans.
McCain's campaign manager, Rick Davis, was president of an organization, the Homeownership Alliance, that advocates for expansion of low-interest loans funded by the two mortgage giants. Federal records show that Arthur Culvahouse Jr., who is heading McCain's vice presidential search effort, was a lobbyist for Fannie Mae. Rudman was hired by Fannie Mae to lead an internal review of the company's accounting policies that concluded in 2006.
Until recently, one of Obama's advisors on vice presidential selection was James A. Johnson, who once led Fannie Mae.
Obama has been one of the largest recipients of campaign contributions from donors associated with Fannie Mae and Freddie Mac, receiving $105,849 since he first ran for national office four years ago. That made him the third-largest recipient among the top 25 listed in a recent report by the Center for Responsive Politics, which looked at contributions dating to 1989.
McCain did not make the group's top 25 list.
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peter.wallsten@latimes.com
tom.hamburger@latimes.com
