Will the Blagojevich Corruption Scandal Be a Distraction for Obama?

President-elect Barack Obama is not believed to have been aware of Illinois Gov. Rod Blagojevich's purported attempts to sell his Senate seat, but the indictment against Blagojevich still threatens to be a distraction for Obama just as he transitions into power.

Blagojevich was arrested yesterday after FBI wiretapping taped conversations in which Blagojevich allegedly discussed selling Obama's vacant seat to the highest bidder, withholding funds from a project for a children's hospital until the chief executive contributed to Blagojevich's campaign, and pressuring the Chicago Tribune's owner to fire an editorial writer (who had been critical of Blagojevich) in return for state help in financing the sale of Wrigley Field.

Patrick Fitzgerald, the U.S. attorney for the Northern District of Illinois, said that the investigation produced no evidence linking the president-elect to the allegations. And Obama, although he supported Democrat Blagojevich in his 2006 run for the governor's seat, wasn't close to him.

The 76-page indictment of the governor, however, is riddled with references to Obama—although none that would point to Obama's awareness of any of the alleged goings-on. One part describes a deal that Blagojevich allegedly laid out in which he envisioned including Obama in the proceedings. But Blagojevich is also quoted in a wiretap complaining that Obama and his team were "not willing to give me anything except appreciation." Still, the scandal itself, erupting in Obama's hometown, threatens to bring the taint of Chicago corruption to the president-elect.

Obama has steadfastly remained above the fray since the news broke yesterday. He told reporters only that "I had no contact with the governor or his office, and so I was not aware of what was happening. It is a sad day for Illinois. Beyond that, I don't think it's appropriate to comment."

In fact, Obama's actions may have indirectly led to Blagojevich's downfall. A state ethics bill that sought to limit money's influence in politics had been stymied in the Senate, and it was only after Obama placed a call to the state senate's president, who had opposed the bill, that it passed. That allegedly led Blagojevich to pressure state contractors to give money to his campaign before the bill went into effect—a move noted by federal agents, who then wiretapped his home.

Even so, Obama and his team are going to have to tread very lightly to emerge from the scandal unscathed. Republicans already have put the pressure on, and risk to him heightens if the case goes to court or otherwise drags on. Obama could, like the Clintons with the Whitewater scandal, be associated with a series of investigations that never show illegal behavior but taint him nonetheless.

As for Blagojevich, after appearing before a judge yesterday, he was freed on $4,500 bail and has been at home today, his 52nd birthday. Despite the indictments, he's still officially governor—meaning that if he moved fast and felt bold, he could still appoint someone to Obama's Senate seat. 

• Read more about the Blagojevich indictment.