Did John McCain have an affair with a lobbyist and use his power for her client?

Posted Feb 20th 2008 7:59PM by Peter Cohan

The New York Times, in a bombshell report, raises serious questions about John McCain's integrity. Of course, such questions should be nothing new. In the 1980s, he intervened to keep regulators away from Charles Keating, a Savings & Loan operator, who contributed to McCain's campaign and let McCain's wife co-invest in a real estate deal. Keating's Lincoln Savings and Loan ultimately failed, costing taxpayers $3.4 billion.

But the Times story adds a new wrinkle. It raises questions about a 40-year old lobbyist, Vicki Iseman, whom McCain's advisors worried was having an affair with him. So they shooed her away from McCain as he tried to run, unsuccessfully, for President in 2000.

But that was not enough to stop McCain from intervening, yet again, on behalf of a powerful campaign contributor. In this case, it was Iseman's client, Paxson Communications. In late 1999, Iseman asked McCain's staff to send a letter to the Federal Communications Commission (FCC) to help Paxson on another matter.

Paxson's CEO Lowell Paxson was impatient for FCC approval of a television deal, and Iseman told The Times that she had sent to McCain's staff information for drafting a letter urging a swift decision. McCain complied. He sent two letters to the commission, drawing a rare rebuke for interference from its chairman.

Nobody's perfect. But maybe McCain's struggles with his own ethical problems should be resolved before he gets near the Oval Office.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.

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Reader Comments (Page 2 of 2)

2-21-2008 @ 9:00AM

Warren said...

When the going gets down and dirty, the NY Times is slinging and slopping, spoken by a retired 37-year newsman who feels Hillary is missing a big chance by not forcing Obama to talk about the big money, not just the change. Remember, 90 percent of the media is Democrat or farther left. I voted twice for Bush and still say he would have been booted from office had he not responded to direct armed attacks on the US on 9-11.

2-21-2008 @ 8:38AM

Chris said...

Cohan,

Why do you use this venue to push your political agenda? This is supposed to be a blog about stocks.

Chris

2-21-2008 @ 10:01AM

Jill said...

My question is this, if McCain's part in the Keating debacle cost us (you and me, as taxpayers) $3.4 million dollars...how much do you think the average American will suffer if he is elected President.

Frankly, our family has suffered enough over the past 8 years. I don't know how we would get by with 4 more years of "support the rich and keep the working poor down" thinking.

2-21-2008 @ 1:08PM

Neutral said...

Jill-Let's see McCain is the closest to the middle of any of the candidates, and someone truly in themiddle is what we need. We don't need someone who promises to get us out of a war that we can't possibly leave in the forseeable future, hand us universal medical care, provide new educational incentitives, and increase taxes on every small business in the country. Sorry but that is where Obama is headed. All I want is someone who really understands that the a very large part of the world doesn't like us and we need to be safe, our borders need to be secure and we need to settle this problem with illegals currenly working in our country.
As for McCain's past problems read your history then make your comments. Talking without knowing what happened is as dangerous as being silent when you do know what happened.

2-21-2008 @ 4:34PM

KM said...

No, he did not have an affair. Period. Read it again. She was a lobbiest. That was the implied influence she was to have with him. Nothing else.

2-21-2008 @ 5:58PM

John said...

He's a Republican. She's a woman. How could there be an affair?

2-21-2008 @ 7:46PM

Jon said...

It is my understanding that McCain had an affair with his current wife when he was married to his previous just after he returned from Vietnam. If he did it once, he probably did it again - find a prettier, younger wife.

2-22-2008 @ 8:23AM

Mike in Seattle said...

well just look at all the red herrings in here. this story is not about an affair, it's about corruption. and the facts that remain undisputed even by McCain are: a lobbyist's client gave McCain $20k and asked for his personal intervention in a matter before the FCC that affected them, and he did it. there's a lot more to it than that if you care to look at all the details, but that is why it got published and also why it's not gonna be easily dismissed.

2-22-2008 @ 3:00PM

Yonni said...

By watching his body movement when his wife spoke on his behalf (And just who chose the loyal wife to be the one to reassure us her husband is faithful?), my bet is that the Senator is not proud of at least a part of his "friendship" with this lobbyist (a Washington code word). Since no party requires their candidates to meet any personal code of ethics that includes fidelity, we will rarely know the kind of person we are hiring until we see them in office.

2-22-2008 @ 3:01PM