Obama adviser resigns under fire

WASHINGTON — James Johnson, the Washington insider whom Sen. Barack Obama tapped to head his vice-presidential search, resigned Wednesday to try to silence a growing furor over his business activities.

His resignation came after days of scrutiny from the news media and attacks from Sen. John McCain and Republican Party officials over mortgages Johnson, a former chief executive of Fannie Mae, received on favorable terms from the Countrywide Financial, the mortgage company that was a central player in the subprime lending crisis. Johnson also faced questions about his role on compensation panels that awarded large payouts to corporate executives.

In a statement Wednesday, Johnson said he was leaving not because he had done anything wrong but to save Obama further grief.

"I believe Barack Obama's candidacy for president of the United States is the most exciting and important of my lifetime," he said. "I would not dream of being a party to distracting attention from that historic effort."

With his departure, Obama's vice presidential vetting team now includes only former Deputy Attorney General Eric Holder and Caroline Kennedy, the daughter of former President Kennedy.

Democrats blast McCain on Iraq

PHILADELPHIA — Avoiding casualties in Iraq is more important than bringing troops home, Republican John McCain said Wednesday, feeding an outcry from Democrats who declared him to be out of touch with the public and the needs of the military.

Appearing on NBC's "Today Show," McCain was asked if he has a better estimate for when U.S. troops could leave Iraq.

"No, but that's not too important," McCain said. "What's important is casualties in Iraq.

"Americans are in South Korea. Americans are in Japan. American troops are in Germany. That's all fine.... We will be able to withdraw. ... But the key to it is we don't want any more Americans in harm's way."

Sen. John Kerry, D-Mass, responded on behalf of the Obama campaign: "It is unbelievably out of touch and inconsistent with the needs and concerns of Americans, and particularly the families of the troops who are over there," Kerry said. "To them it's the most important thing in the world when they come home. And it's the most important thing in the world that we have a commander in chief who understands how you can bring them home."

Seattle Times news services