If Hillary is indicted and Obama lets it go through, that's handing the White House to Trump.
As does a pardon. A pardon is, essentially, an admission of guilt, for which consequence is being avoided thanks to partisan politics and cronyism. It feeds right into Trump's message.
I dare say, if indicted, she is better off pushing forward with her campaign, playing up the presumption of innocence, rather than accepting a pardon.
As for Obama, any indictment costs Clinton the election. Why taint his own legacy alongside hers when defeat is inevitable at that point?
FBI Director James Comey was appointed by Obama in 2013. Despite being republican he has been known not to play party politics and has had issues with Bush/Cheney in 2004 as well as the Clintons in the 90's. So this will be the guy giving the call that could change the course of the election.
Here's some on those stories:
http://time.com/4276988/jim-comey-hillary-clinton/
http://mobile.nytimes.com/2007/05/16/washington/16nsa.html?referer
Matt's right about the pardon. The Gerald Ford comparison if he did that would be thrown at him and taint his legacy.
Like I said, Lynch saying she will indict if the FBI recommends it signals to me that she knows that the FBI won't. At worst I think it will come back as inconclusive.
On the other hand, there is the meeting between Bill and Lynch. I am of two minds of that. Some have suggested that it is indicative of her warning Bill of a forthcoming indictment or Bill trying to pressure her out of indicting. I don't buy that. The Clintons (and Lynch) are smarter than that. If she were warning them of an indictment, it would be done through back channel aides, not a meeting between the Attorney General and a former President (which would be impossible to hide). Same if he were trying to pressure her. It wouldn't be so overt. That all leads me to believe that it truly was a coincidence.
Of course, let's assume for a moment that it is indicative of Lynch giving the Clintons a heads up. If that is the case, I think it means Clinton will announce her running mate in the next few weeks and Lynch will pressure the FBI into withholding their report until after the Democratic Convention. That prevents Bernie Sanders from using an indictment to hijack the nomination (that being said, even if Clinton were indicted tomorrow, I do not think Sanders will, nor should he, be the nominee). But waiting until after the convention the Party ensures that there is an heir apparent ready to step in as nominee, in the form of the Vice-Presidential nominee.
That leads us to...
Let's talk running mate. WHO'S IT GONNA BE?
Tim "I am oatmeal" Kaine
Liz "progressive hero" Warren
Bernard "not a real Democrat" Sanders
Xavier "who is that?" Becerra
other
I'd say:
40 % Kaine (who is a very uninspired choice, IMO)
15 % Sherrod Brown
15 % Julian Castro
10 % Elizabeth Warren
5 % Cory Booker
5 % Tom Perez
3 % Xavier Becerra
7 % Other
0 % Sanders (he's not even being vetted)
Personally, I think Brown is the best choice.
I think there is an outside chance of Castro, Warren, Booker, Perez or Beccerra because I think while a double minority ticket is risky, Clinton's ego (which is, admittedly, large) may get the best of her and she would love to have her administration be historically remembered as the first of two minorities at the top.
That being said, I think it will be Kaine for a few reasons. First and foremost, I don't think Clinton (with her ego being what it is) wants to be overshadowed by her running mate (Castro, Booker, Warren, Perez and Becerra all overshadow her). In fact, I'd say Xavier Beccerra lobbying for the position has hurt his chances considerably for that very reason. This is HER time. She is ENTITLED to it. She isn't going to pick a VP who overshadows her in her moment. Second, Kaine is a very safe pick. I think Clinton likes that. Third, his is a Clinton crony. She doesn't want an Al Gore situation. She wants someone who falls in line. That'll be Kaine.