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A quick look into 3 former Fannie Mae executives who have brought down Wall Street and our financial system.

In Uncategorized on October 11, 2008 at 10:04 pm

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

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 irregulaties 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=2 0the 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 resi gned 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 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.

FYI: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

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  1. thanks for the post. sure shoots the Sh$t out of the Obama rhetoric. but the liberal media REFUSEs to report the truth. they will do ANYTHING to squash the truth to get this incompetent inexperienced left winger elected. very very sad for the country.

  2. Why didn’t you post my response? Do you fear differing views?

  3. Obama will win because Americans know the truth.

  4. Amen.

    very very sad

    and

    very very very scary

  5. its going to be sadder the day after the election. the american public is too stupid to look @ the facts and realize that obama IS the problem.. but his slick democratic machine buys lots of ad time and tells lies.. and the dopey electorate believes it. The only way Obama wins is as an ANTI-republican vote. he has NO substance, no backbone, and LESS experience than Sarah Palin. But the left wing liberal media ‘gives him a pass’ and promotes lies about her. Funny how all the hollywood elitists and northeast liberals said it was “TIME for a woman’ to be president… of course the hippocrats also want to make sure its not a republican . Connie Rice never got a fair shake either from these liberals.

  6. If you look at the Bergen Democratic Party as a microcosm you realize that what happens nationally is no different than what’s ahppening in our own back yards. Those guys will go to jail after trial. ACORN has allegedly falsified thousands–possibly millions–of votes, the overwhelming number of which will be Democratic, all with Obama’s financial incentive. The Candidate has associated with avowed enemies of the republic throughout his career and now claims entitlement to “a pass.” He claims no knowledge as a defense, as if that makes him smarter. The Candidate has no new ideas, no new game plan, no backbone to get anything done. I’m no fan of McCain, but all you Obama supporters out there who are caught up in and living in the hype that is the only promise he delivers–PLEASE WAKE UP. Your children’s future is at stake here. THIS GUY IS BAD, BAD NEWS. The scary thing is that we won’t know how bad he is until it’s too late. And then, little villages like Ridgewood will simply disappear. This guy is really bad–don’t wait for McCain to point it out for you.

  7. 7:16 PM –

    What you fail to realize is that many of your neighbors fully understand what and who Obama is and what he stands for AND THEY FULLY AGREE WITH HIS SOCAILIST VIEWS.

    They think that they are insulated enough within their own little cocoon of money that they won’t be impacted when these socialist policies come to pass.

    They are also under the delusion that EVERYONE agrees with their ideal of a multi-cultural Eden and that all they have to do is help out those less fortunate and when the “disadvantaged minorities” are in power that they will share their views. Your neighbors think that everyone is on the SAME PATH towards the SAME GOAL but are just on different parts of that path. This is not true… the paths are different.

    What your neighbors fail to realize is that EVERYONE DOES NOT have the same ideal world view and that people like Rev Wright and La Raza more accurately represent the views of these minorities and they will CONTINUE to support those views when in the majority.

    So the magnanimous views of your neighbors will ultimately reduce them to second class citizens although they believe that this will never happen because they think a) that their money will protect them and b) when “raised up” the minorities will think like they do once unburdened from the shackles of minority status. Nothing could be further from the truth. The paths are different… the goals are different.

  8. franklin raines should be in prison

  9. Raines works for the Obama Campaign as Chief Economic Advisor

    What’s this say about our future?

  10. 12:41 PM –

    I guess I can put my shades away…

  11. 4:08
    and get your reading glasses out so you can start checking the fine print before you sign your life away.

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