Stephanopoulos did not challenge Graham's false suggestion that Obama "borrow[ed] money from" Rezko "to build his house"

Summary: On This Week, George Stephanopoulos did not challenge Sen. Lindsey Graham's false suggestion that Sen. Barack Obama "borrow[ed] money" from Antoin "Tony" Rezko "to build his house." In fact, the Obamas established a land trust to purchase the property and took out a $1.32 million mortgage on the home, financed through the Northern Trust Co. And the Obamas did not "build" the house -- they purchased an existing home.

On the June 8 edition of ABC's This Week, responding to Sen. John Kerry's (D-MA) assertion that Sen. John McCain "still has lobbyists running his campaign" and that much of his funding comes from "these special kinds of interests that have fought against real reform in Washington," Sen. Lindsey Graham (R-SC) said: "John McCain didn't borrow money from a guy going to jail to build his house, so if we're going to start talking about associations, that's fine, we'll do that." Host George Stephanopoulos did not challenge Graham's false suggestion that Sen. Barack Obama "borrow[ed] money" from convicted Chicago businessman Antoin "Tony" Rezko "to build his house." In fact, as Media Matters for America has documented, legal records show that Barack and Michelle Obama established a land trust to purchase the property and took out a $1.32 million mortgage on the home, financed through the Northern Trust Co., not Rezko. Also, the Obamas did not "build" the house -- they purchased an existing home. As the Chicago Tribune reported, "The home and lot sales closed on June 15, 2005. A land trust controlled by the Obamas bought the house for $1.65 million, and the Obamas secured a $1.32 million mortgage from Northern Trust to complete that purchase."

Graham's comments echo those of another McCain supporter, former Massachusetts governor and Republican presidential candidate Mitt Romney, who falsely asserted during the June 5 edition of Fox News' Fox & Friends that Rezko "financed" Obama's house.

From the June 8 edition of ABC's This Week with George Stephanopoulos:

KERRY: If John McCain is such a reformer, how did all these lobbyists start running his campaign? How do you have lobbyists who lobby for the Burma junta? How do you have lobbyists who represent the predatory practitioners that brought us the housing crisis? These are the people running his campaign. He still has lobbyists running his campaign, so there's just a world of difference between the perception. Much of the money that John McCain is raising today comes from all of these special kinds of interests that have fought against real reform in Washington.

STEPHANOPOULOS: Senator.

KERRY: When Lindsey says we have "a high-taxer" and a "low-taxer" -- we just pointed out that Barack Obama has a tax cut for middle class Americans. He simply wants to make the tax code fair again and work for everybody in a nation that can't afford to just give away, give away, give away all the money, facing all the crises that we're facing.

STEPHANOPOULOS: Senator Graham, your response.

GRAHAM: Well, Charlie Black helped run Ronald Reagan's campaign -- he is not lobbying now. Rick Davis ran John's campaign in 2000. Mark Salter is his alter ego. Phil Graham is a great friend. John McCain didn't borrow money from a guy going to jail to build his house, so if we're going to start talking about associations, that's fine, we'll do that. But let's talk about the question of bipartisanship.

—A.J.W.