Thread: 3 Men Who Help Bring Fannie Mae Down

Interesting that the Dems are pointing fingers at Bush.......and the liberal media is complicit as they are too lazy and stupid to investigate!

Here is a quick look into 3 former Fannie Mae executives who have brought down Wall Street.

Franklin Raines was a Chairman and Chief Executive Officer at Fannie Mae. Raines was forced to retire from his position with Fannie Mae when auditing discovered severe irregularities in Fannie Mae's accounting activities.
At the time of his departure The Wall Street Journal noted, " Raines, who long defended the company's accounting despite mounting evidence that it wasn't proper, issued a statement late Tuesday conceding that "mistakes were made" and saying he would assume responsibility as he had earlier promised.
News reports indicate the company was under growing pressure from regulators to shake up its management in the wake of findings that the company's books ran afoul of generally accepted accounting principles for four years."

Fannie Mae had to reduce its surplus by $9 billion.

Raines left with a "golden parachute valued at $240 Million in benefits.
The Government filed suit against Raines when the depth of the accounting scandal became clear.
http://housingdoom.com/2006/12/18/fannie-charges/

The Government noted, "The 101 charges reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public.
The Notice explains how they submitted six years of misleading and inaccurate accounting statements and inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner." These charges were made in 2006. The Court
ordered Raines to return $50 Million Dollars he received in bonuses based on the miss-stated Fannie Mae profits.

Tim Howard - Was the Chief Financial Officer of Fannie Mae. Howard "was a strong internal proponent of using accounting strategies that would ensure a "stable pattern of earnings" at Fannie. In everyday English – he was cooking the books. The Government Investigation determined that, "Chief Financial Officer, Tim Howard, failed to provide adequate oversight to key control
and reporting functions within Fannie Mae."

On June 16, 2006, Rep. Richard Baker, R-La., asked the Justice Department to investigate his allegations that two former Fannie Mae executives lied to Congress in October 2004 when they denied manipulating the mortgage-finance giant's income statement to achieve management pay bonuses.

Investigations by federal regulators and the company's board of directors since concluded that management did manipulate 1998 earnings to trigger bonuses. Raines and Howard resigned under pressure in late 2004.

Howard's Golden Parachute was estimated at $20 Million!

Jim Johnson - A former executive at Lehman Brothers and who was later forced from his position as Fannie Mae CEO. A look at the Office of Federal Housing Enterprise Oversight's May 2006 ..

http://www.ofheo.gov/media/pdf/FNMSPECIALEXAM.PDF
report on mismanagement and corruption inside Fannie Mae, and you'll see some interesting things about Johnson. Investigators found that Fannie Mae had hidden a substantial amount of Johnson's 1998 compensation from the public, reporting that it was
between $6 million and $7 million when it fact it was $21 million."

Johnson is currently under investigation for taking illegal loans from Countrywide while serving as CEO of Fannie Mae.

Johnson's Golden Parachute was estimated at $28 Million.

WHERE ARE THEY NOW?

FRANKLIN RAINES? Raines works for the Obama Campaign as Chief Economic >Advisor

TIM HOWARD? Howard is also a Chief Economic Advisor to Obama

JIM JOHNSON? Johnson hired as a Senior Obama Finance Advisor and was selected to run Obama's Vice Presidential Search Committee

IF OBAMA PLANS ON CLEANING UP THE MESS - HIS ADVISORS HAVE THE EXPERTISE -
THEY MADE THE MESS IN THE FIRST PLACE.

Would you trust the men who tore Wall Street down to build the New Wall Street ?

Just paid more taxes by October 1, 2008. Watching it go help non- Americans, it truly makes me sick. The landlord to the immigrant house down the street took all his taxes off on his rental via the Federal Schedule E. Immigrants only pay sales taxes, and they can fudge on that if they own a restaurant or store by paying wholesale.

Program into your cell phone and call at lunch, at breaks, at work
Toll Free Congressional Switchboard Number
800-862-5530
877-851-6437
866-220-0044 email this to your work computer

call call call
_________________

Do it for your Kids

I'm not a Dem - but I'm pointing the finger at Pres. Bush as well as the Democrats and the greedy people mentioned in the article.

Watch this.

http://www.youtube.com/watch?v=vLUbb2DUYGk

I'm thinking there is enough blame to go around and the question isn't who did - but is there anyone who didn't?

Actually, since they all were involved, the question is, how do we get rid of all of them?

vmonkey56

It does make you sick.

We are going to have to learn to spend smarter ourselves, protect as much of our income as we can.

Lets not forget the Clinton administration that instigated easing standards on mortgage requirements!

Originally Posted by avenger

Lets not forget the Clinton administration that instigated easing standards on mortgage requirements!

Oh ya. Did you see Clinton on the Youtube saying that the problem is the Dems would not heed the warning and reform that the Republicans wanted and he wanted. LOL

But weren't the Republicans in control of the House and Senate during Clinton? Both need to be watched.

Originally Posted by vmonkey56

But weren't the Republicans in control of the House and Senate during Clinton? Both need to be watched.

Yep, you're absolutely right vmonkey56. ALL politicians need to be watched at all times. Maybe they need a camara following them around at all times as long as they are "public servants" to make sure they are doing what they are supposed to and not making deals to sell us out.

Originally Posted by jimpasz

Program into your cell phone and call at lunch, at breaks, at work
Toll Free Congressional Switchboard Number
800-862-5530
877-851-6437
866-220-0044 email this to your work computer

call call call
_________________

Do it for your Kids

Thanks but I can't get through to either one of those numbers. The lines must be jammed - which I hope is a good sign!