Three Executives Who Helped Bring About the Crisis

hrvestuff · Post by **hrvestuff** » Fri Oct 03, 2008 4:42 pm

Here is a quick look into 3 former Fannie Mae
executives who contributed heavily to bringing 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/>
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 Gaines to return $50 Million Dollars he received in bonuses
based on the mis-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 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 takingillegal 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.

Marty · Post by **Marty** » Fri Oct 03, 2008 7:02 pm

Also Harvey, Fannie Mae gave more money to Obama then any other senator! Then Obama comes back and states all of his money came in less then $200 from each of the people that love him. Of course when he started his campaign it was only $5 each â€“ but that is when he was not going to take matching funds from the Government. He when back on his word!

Greg_Cornish · Post by **Greg_Cornish** » Fri Oct 03, 2008 8:45 pm

Marty wrote:Also Harvey, Fannie Mae gave more money to Obama then any other senator! Then Obama comes back and states all of his money came in less then $200 from each of the people that love him. Of course when he started his campaign it was only $5 each â€“ but that is when he was not going to take matching funds from the Government. He when back on his word!

Is that documented? I never heard that before.

Marty · Post by **Marty** » Fri Oct 03, 2008 8:53 pm

What part?

1. Fannie Mae gave more money to Obama then any other senator!
2. Obama states all of his money came in less then $200 from each
3. When he started his campaign it was only $5 each
4. He was not going to take matching funds from the Government. He when back on his word!

This has been out there â€“ I see if I can find the article - let me know which one?

bss_hunter · Post by **bss_hunter** » Fri Oct 03, 2008 10:06 pm

Hrve oh hrve when will you learn??? I find it funny that in your last post you accused people of not doing their homework.... Well take a look at this link:

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

This link contains facts....a word you're obviously not very familiar with, so do me a favor and finish of eighth grade before you go copying and pasting right wing propaganda into this forum

Greg_Cornish · Post by **Greg_Cornish** » Fri Oct 03, 2008 10:19 pm

Marty wrote:What part?
4. He was not going to take matching funds from the Government. He when back on his word!

Marty · Post by **Marty** » Sat Oct 04, 2008 10:29 am

The Boston Globe â€“ a Liberal, Left Wing rag piece!

"Obamaâ€™s decision to become the first major-party candidate to opt out of public financing for the general election frees him to continue his record-shattering, Internet-driven fund-raising until November - and probably to outspend McCain by a vast amount. But it opens the Democrat to accusations of an about-face on past statements that he would take the public grant and limit spending to that amount if the Republican nominee agreed to do likewise."

"John McCain confirmed later yesterday that he will take $84.1 million in taxpayer funding for the general election, and accused Obama of reneging on a pledge to do the same. "He has completely reversed himself and gone back, not on his word to me, but the commitment he made to the American people," McCain told reporters."

"In a video message to his supporters, Obama explained his reversal by asserting that the public-financing system is irreparably broken and he is instead involving the public through his "grassroots movement" of 1.5 million donors, many of whom give small amounts."

http://www.boston.com/news/nation/artic ... c_funding/

Dan McKenzie · Post by **Dan McKenzie** » Sun Oct 05, 2008 10:14 am

If that's the case, McCain should look first to his campaign staffers as the cause of that debacle. One of them was Fannie Mae's head of lobbying, and spread tens of millions of dollars around Washington in the form of lobbying contracts. A number of McCain staffers were on the receiving end of those contracts, collecting hundreds of thousands of dollars each from the lenders to rep their interests. And McCain's campaign manager served as president of a lobbying association that fought to protect Freddie Mac and Fannie Mae from the sort of regulation that McCain is now proposing.

Tobe · Post by **Tobe** » Tue Oct 07, 2008 12:58 pm

bss_hunter wrote:

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

This link contains facts....a word you're obviously not very familiar with, so do me a favor and finish of eighth grade before you go copying and pasting right wing propaganda into this forum

With all due respect bss_hunter, you might want to check your sources. The reliability of snopes.com is questionable to say the least, snopes.com also bought into the "911 conspiracy theory"

bss_hunter · Post by **bss_hunter** » Tue Oct 07, 2008 11:10 pm

umm yes I realize that Tobe, but if you had taken the time to do some research of your own then you whould have found out that what snopes reported was 100% true pertaining to this article......If u happen to find something proving me wrong then please let me know chodehunter

Jeff C. · Post by **Jeff C.** » Wed Oct 08, 2008 6:32 am

bss_hunter wrote:Hrve oh hrve when will you learn??? I find it funny that in your last post you accused people of not doing their homework.... Well take a look at this link:

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

This link contains facts....a word you're obviously not very familiar with, so do me a favor and finish of eighth grade before you go copying and pasting right wing propaganda into this forum

Once again Hrvstuff demonstrates he is so gullible that he doesn't know the difference between fact and fiction. LMAO at Hrvstuff!! And hey, Hrvstuff, have you seen any of those giant grizzly/fox hybrids down where you live lately?