Here's some quotes from what she said and context of the story:
Ferraro, who was Walter Mondale's vice presidential running mate, said Wednesday that her remarks were not racist and had been taken out of context. She accused Obama's campaign of twisting her remarks to undercut his rival for the Democratic nomination, Sen. Hillary Rodham Clinton.
"I was talking about historic candidacies and what I started off by saying (was that) if you go back to 1984 and look at my historic candidacy, which I had just talked about all these things, in 1984 if my name was Gerard Ferraro instead of Geraldine Ferraro, I would have never been chosen as a vice presidential candidate," Ferraro said on ABC's "Good Morning America.""It had nothing to do with my qualification."
Ferraro said she has a 40-year history of opposing discrimination of all kinds, including race, and that she was outraged at criticism of her remarks by David Axelrod, Obama's chief media strategist, because he knows her and her record.
"David Axelrod, his campaign manager, has chose to spin this as a racist comment because everytime anybody makes a comment about race who is white - he did it with Bill Clinton, he was successful; he did it with (Pennsylvania governor and Clinton supporter) Ed Rendell, he was less successful; and he is certainly not going to be successful with me," Ferraro told CBS'"The Early Show.""He should have called me up ... He knows I'm not racist."
The controversy began Tuesday when the national media picked up on comments Ferraro made in an interview last week with the Daily Breeze newspaper in Torrance, Calif.: "If Obama was a white man, he would not be in this position. And if he was a woman (of any color) he would not be in this position. He happens to be very lucky to be who he is. And the country is caught up in the concept."
Ferraro said she stands by her assertion that Obama's success in the Democratic campaign is due "in part" to his race.
Source: Obama Says Ferraro Dividing Democrats