 FreddieMac/FannieMae Takeover, Govt. takeover of 7 trillion debt! |
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Patch  |
Posted: 30-Sep-2008, 03:18 PM
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Celtic Guardian
Group: Celtic Nation
Posts: 7,710
Joined: 22-Dec-2002
Zodiac: Ivy
Realm: America, Mid West
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| QUOTE (valpal59 @ 30-Sep-2008, 03:11 PM) | I received this email today.
Here is a quick look into 3 former Fannie Mae executives who have helped bring 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 irregulaties in Fannie Mae's accounting activities. At the time of his departure (Wednesday, Dec.22, 2004) 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 (Dec. 21, 2004) 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. The government filed suit against Raines when the depth of the accounting scandal became clear. See:
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 left Fannie Mae under pressure in December 2004. Raines's departure was structured as an early retirement. Howard resigned.
Howard's Golden Parachute was estimated at $20 Million!
Jim Johnson is a former executive at Lehman Brothers 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 was hired as a Senior Obama Finance Advisor and was selected to run Obama's Vice Presidential Search Committee |
That should be an indication of things to come if Obama is elected. Do not think McCain is clean either though! He as an advisor who was/is lobbying for the financial sector.
As Bill Balsamico stated on his business sign: If McCain and/or Obama are the answer, it must have been a stupid question!"
Slàinte,
Patch
The "Keating Five" included McCain and a Bush!
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| valpal59 |
Posted: 30-Sep-2008, 03:55 PM
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Celtic Guardian
Group: Celtic Nation
Posts: 3,534
Joined: 18-Sep-2003
Zodiac: Holly
Realm: Texas Panhandle
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| QUOTE (Patch @ 30-Sep-2008, 04:18 PM) | That should be an indication of things to come if Obama is elected. Do not think McCain is clean either though! He as an advisor who was/is lobbying for the financial sector.
As Bill Balsamico stated on his business sign: If McCain and/or Obama are the answer, it must have been a stupid question!"
Slàinte,
Patch
The "Keating Five" included McCain and a Bush! |
Yes, I realize that McCain is up to his neck also. I don't think there is a person in politics that isn't to some extent.
I want to thank all of you that post in the politics forum and are knowledgeable about politics. I am one of the people that is guilty of burying my head in the sand.
Because of you all I have learned alot and I am doing my best to be more responsible.
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   "He is your friend, your partner, your defender, your dog. You are his life, his love, his leader. He will be yours, faithful and true, to the last beat of his heart. You owe it to him to be worthy of such devotion." Author Unknown |
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