Saturday, September 27, 2008

Life After Fannie and Freddie

Be sure to read the "where they are now" at the end !!
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 pres sure 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 unsou nd 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.
Net windfall . . . $190 million!
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 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 ?

18 comments:

ka_Dargo_Hussein said...

Brett, you are so sad dude.

You've sunk to posting chain mails.

ka_Dargo_Hussein said...

Now I'm questioning how much of your "writing" and "opinion" is original, and how much you've lifted from someone else.

ka_Dargo_Hussein said...

ROFLMAO...I've found it on 2 other blogs as well. You guys are funny and have absolutely no credibility.

Pathetic.

ka_Dargo_Hussein said...

Here's the first, and here's the second.

Sad man, sad.

Red Or Dead said...

Remember Nobama is for change and change is good for the country. Don't let a few facts cloud your judgment.

Nobama will not take your guns away either. Ya right.

Nobamas 1996 Questionnaire for the Independent votes of Illinois.

Red Or Dead said...

Insane, maybe you could post the proper rules that Brett should follow FOR HIS OWN BLOG!!!!!!!

ka_Dargo_Hussein said...

So, Red, you think it's ok to steal other folk's work without credit? Typical Republican mindset...steal steal steal.

Red Or Dead said...

I just asked you a question?

Speak of stealing.

More like the way the Demorats are trying to steal the election in Ohio.

ka_Dargo_Hussein said...

My statement was in regard to your comment about how Brett runs his blog. If he's stealing his material without attribution, then he doesn't have much credibility, not unlike other Republicans.

I wouldn't worry about Ohio, Red. We'll win it fair and square.

Red Or Dead said...

Just ask Joe Biden. His borrowing of a British politician's campaign speech is perhaps the most famous instance of political plagiarism, illustrating both the dangers of unacknowledged language lifting as well as the extent to which one's enemies will go to torpedo their opponents' chances for success.

You mean like this?

ka_Dargo_Hussein said...

Red, can't you bring up something relevant?

Or, have the 101st Fighting Keyboarders dropped you from their distribution list?

Come on, dude. You gotta try a little harder.

ka_Dargo_Hussein said...

Here's a timeline the all-mighty Brett might approve of.

Or, is Barron's something your bird's find distasteful also?

Red Or Dead said...

This has got to be the most ignorant bitch in the world. And this is a bi-partisan effort. Most blame this as to why the bill failed.
The Dumbest woman in the world

Red Or Dead said...

Insane you are accusing Brett of plagiarism and when I show Joe doing it it is not relevant. Typical liberal.

Now tell us all again that the Democratic party is not to blame for this current financial mess..
Frank-Dodd-Schumer.

ka_Dargo_Hussein said...

Oh, Red, don't be angry.

Biden did it 20 years ago...it's old news and been re-hashed ad nauseum.

Brett's doing RIGHT NOW.

Regarding, Pelosi...you Republicans are bunch of pansies who got their feelings hurt...waaa waaa waaa!

Cry me a river.

Also, it looks like Bush may be doing another end-run. Oh, is Bloomberg not on Brett's approved source list? That's right...it's not redstate, littlegreenfootballs, or Coultergeist's latest book, so probably not.

Brett said...

All of these comments by the liberal on here, yet not one of them refutes what was in the blog regarding the three thieves backing Obama.

ka_Dargo_Hussein said...

Brett, because they are things pulled out of someone's butt and are laughable at best.

RAINES...not Obama's Chief Economic Advisor

HOWARD...nothing regarding Howard as Chief Economic Advisor, except on right-wing rags like yours

JOHNSON...not Obama's Chief Economic Advisor, but was associated with the campaign for a short time

Either you were had or you are promoting the lies.

Which is it?

ka_Dargo_Hussein said...

*crickets*
When faced with telling the truth, Brett pleads the 5th.
*crickets*