> 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
>
>
>
> IF OBAMA PLANS ON CLEANING UP THE MESS - HIS ADVISORS HAVE THE EXPERTISE -
THEY
> MADE THE MESS IN THE FIRST PLACE.
>
>
>
>
>
>
> Can the men who were instrumental in bringing down Wall Street be trusted to
> build a new Wall Street?
>