This would explain why Blago tried to smear him:

CHICAGO, Illinois (CNN) -- Rep. Jesse Jackson Jr., who was cited in a criminal complaint against Rod Blagojevich, went to the U.S. Attorney's office about alleged wrongdoers, including the Illinois governor, a Jackson spokesman said Tuesday.

Jesse Jackson Jr. reported in 2006 what he believed was a shakedown by the Illinois governor.

Jackson rejected being labeled with the term "informant" in a message to CNN contributor Roland Martin.

[...] In addition, two sources close to Jackson told CNN that, in 2002, Blagojevich -- then running for governor of Illinois -- solicited a $25,000 campaign donation from Jackson, which he did not get.

At the time, Jackson's wife, Sandi, was a candidate for the job of director of the state's Lottery Commission, a post she did not win, the sources said.

After Blagojevich took office, in early 2003, he told Jackson something to the effect of, "You see what $25,000 would have done?" the sources said.

In 2006, Jackson reported the incident, which he believed to have been an attempt at a shakedown, the sources said.

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Jesse Jackson Jr. was impassioned and emphatic in his press conference today responding to the news that he had been identified as "Senate Candidate No. 5", the figure in the Rod Blagejovich scandal whose emissary, according to Blago, had made a "pay to play" offer. (Blago also indicated on tape that Obama was opposed to this candidate's selection.)

Of course, not only is Blago clearly delusional (how else can you explain this kind of conduct when you're under investigation by the feds?), he's also clearly a liar of prodigious levels. So nothing he said should be taken at any kind of face value.

Nonetheless, the taint clearly threatened Jackson's political future, and coming out -- especially as convincingly as he did today -- was an essential first step in repairing the damage.