Ethics war heats up as key Obama advisor resigns

0 Comments | AFP, June, 2008

CHICAGO (AFP) — Democrat Barack Obama was roiled by another campaign scandal Wednesday when a key advisor resigned amid damaging reports that he had received preferential home loans.

Although Jim Johnson, who has been leading the hunt for a vice presidential candidate, denies any favorable treatment for his home loan, the accusations could dent Obama's image as an untarnished newcomer who has vowed to clean up Washington politics.

Johnson, a former chief executive of mortgage giant Fannie Mae, resigned just hours after Obama took part in a round table in Chicago highlighting the impact of predatory lending on Americans.

Millions have lost their homes over the past two years, unable to keep up with soaring mortgage payments. Some 1.5 million foreclosures were...