We already know that Sen. Barack Obama is snuggly with the leadership of the failed Fannie Mae, having received the second most political bucks from the company’s employees. Despite that, Senator Obama has been running ads and giving speeches blaming John McCain and George Bush’s policies for the current financial turmoil.

Now comes video of Fannie Mae CEO Daniel Mudd calling the Congressional Black Caucus and Barack Obama “friends” and “family” back in 2005. It was already known that Fannie Mae had manipulated its accounting in order to mislead investors and was in serious trouble. The Bush Administration had attempted to increase oversight by creating a new agency just to monitor the mortgage giant, but Democrats stopped. They said there was no problem and that President Bush (and later John McCain) was exaggerating the problem. He was just going to limit the availability of mortgages to lower-income families, they said.

Well, here we are. Now the Democrats are trying to shirk responsibility, blaming the Administration for not implementing enough oversight.