Be sure to read the 'where they are now' at the bottom...!!


Here is a quick look into 3 former Fannie Mae executives who have brought down Wall Street and Main 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 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 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 cap ital 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 theydenied 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 mismanage ment 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?

haha awesome, guilt by association huh? Great researching Sandman. I want to see you be a little more fair however, pull up some facts about Mac's advisors.

Its not "Guilt by Association" as you like to dismiss all obama's fault as. He' put these people in key positions then is trying to make political gain by using the "finanacial crisis" for his own purposes. This is textbook Slick Barry stuff. He's a complete scam artist in the finest of Chicago politics traditions. What an absolute disgrace if this is what we elect President of this great nation.

hahahahhaha You forgot Bush law

They should all be in prison for life. Period.

Not to defend Obama, but these three scumbags aren't the only three reasons the economy is tanking. To blame the whole system's problems on these three people is too simplistic and dangerous, as it overlooks the plethura of other factors that led to this economic crisis.

My concern is who Obama is surrounding himself with. As a matter of fact that kind of stuff scares the bejeezus out of me. Either he is as crooked as them or pretty dim as to what has happened and still going on.

They're politician's!!! They can't surround themselves with honest people, that would be too weird.

You are correct but just because they aren't the only ones doesn't change the fact of what they have done. You don't forgive 3 drug dealers because they aren't the only ones that cause a crime wave in the city. They should pay the price for their actions anyway.

All that also has nothing to do with the point of the post which is what they are doing now and for who. Which if true, I would find as a tough pill to swallow for me as a voter who is on the fence. It sounds like croneyism to me. I can't imagine they are the only finanacial gurus out there to be hired. There may even be some very talented and honest ones.

Were they convicted of anything? Or did they just practice the bush rule?

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?

http://www.snopes.com/politics/obama/fanniemae.asp

Not entirely accurate according to Snopes.

Maybe we ought to throw in Carly Fiorina in to balance the mud slinging. Takes a $21 M buyout from HP at the cost of thousands of jobs for line workers. She's advising McCain on economics. He (McCain) of course knows nothing about her past. She's a real peach too.

Barony I've thrown that to the right wingers of this site many times.../sigh they have never address it. It's no use. She acutlly had another 45 mil in cash. Then theres Philly Gram. The lobbiest for the same corperations that failed are also advising Mac. basiclly obama and mac are drawing from teh same cesspool.
but no...its only Obama who's evil.
No one bothers to ask if their canidiate walks the same line.
Again I say, they are all crooks, I like mine better.

I will throw Jeb and Bush's cousin into the mix also:

"again I say, they are all crooks, I like mine better"

That is by far the most "HONEST" line I have read in any of these threads!

Wow the smoking gun great job!...LMAO.