Obama Tries to Stay Above the Hometown Fray

Nothing in the indictment suggests that Obama ever discussed any deal with Blagojevich. And in some places, Blagojevich is quoted by prosecutors as being frustrated with Obama's transition team.

"Blagojevich said he knows that the President-elect wants Senate Candidate 1 for the Senate seat," the indictment states, "but 'they're not willing to give me anything except appreciation. [Expletive] them.' "

Longtime observers of Chicago politics said they did not expect the probe to cause Obama serious problems as he enters the White House.

But that didn't stop Republicans from trying to use the Blagojevich news to highlight the governor's past ties to Obama. The Republican National Committee circulated a memo to reporters noting that the president-elect had "advised" Blagojevich and endorsed him for a second term.

South Carolina Republican Party Chairman Katon Dawson, a candidate to head the RNC, called on Obama's transition office to release any contacts between it and Blagojevich.

"If President-elect Obama is serious, he should immediately release all records of discussions about the appointment of Obama's successor that he and his transition team may have had with Governor Blagojevich or Governor Blagojevich's office," Dawson said in a statement.

The indictment spends considerable time detailing Blagojevich's dealings with Rezko in a series of illegal "pay to play" deals, based on testimony in Rezko's trial. It quotes the governor telling a planning board member that he should talk to Rezko, saying, "You stick with us and you will do very well for yourself."

In another section, the indictment describes Blagojevich receiving from Rezko an envelope with a donor's $25,000 check, followed by a conversation about the donor getting a position in his administration.