Bill Burton: "This is another flat-out lie from a dishonorable campaign that is increasingly incapable of telling the truth. Frank Raines has never advised Senator Obama about anything -- ever."
But even the Washington Post had to admit the following:
Since this has now become a campaign issue, I asked Huslin to provide the exact circumstances of the quote. She explained that she was chatting with Raines during the photo shoot, and asked "if he was engaged at all with the Democrats' quest for the White House. He said that he had gotten a couple of calls from the Obama campaign. I asked him about what, and he said 'oh, general housing, economy issues.' ('Not mortgage/foreclosure meltdown or Fannie-specific,' I asked, and he said 'no.')"
By Raines's own account, he took a couple of calls from someone on the Obama campaign, and they had some general discussions about economic issues.
And the ad never said Raines was an official advisor to Obama. But it clearly stated that Obama was getting advice from Raines on a host of issues, in an unofficial capacity. So bill burton doesn't really know what he is talking about. and raines is telling half-truths.
UPDATE: The Obama campaign's ties with former Fannie Mae CEO Franklin Raines.