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WOW the Media is sure quiet about these guys :eyeroll:

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 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 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 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 ?
 

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Now I am all confused. I was just watching the news, and they said these people were advisers of Obamas. I didn't catch if they were economic advisers or some other type of advisers.
 

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http://www.usatoday.com/money/companies ... ying_N.htm

they are all dirty but the Dems are really dirty on this issue, mainly because it was driven by the congression black cauus and other Dem black organizations and players, like big city black and very corrupt mayors

Article excerpt starts here you can read the whole thing on the link

Fannie and Freddie have long been distinguished by their outsized influence. They spend heavily on lobbying and hire liberally from Capitol Hill's revolving door and their executives give top dollar to political campaigns. They've also funneled contributions into select charities and think tanks.

"They have always understood that the political risk was huge for them, and they put millions of dollars into using contributions, jobs and consulting contracts to stay in the good graces of people in power," says Wright Andrews, a veteran banking lobbyist. "They had both parties - and particularly the Democrats - under incredible control."

To help keep themselves free from unwanted regulatory and congressional prying, the two mortgage giants have surrounded themselves with scores of well-connected allies. Fannie Mae's 51-member lobbying stable, according to its most recent disclosure, includes former Reps. Tom Downey, D-N.Y., and Ray McGrath, R-N.Y.; Steve Elmendorf, a Democratic political strategist and former congressional aide; and Donald Fierce, a longtime GOP operative. Freddie Mac's list of 91 lobbyists includes former Reps. Vin Weber, R-Minn., and Susan Molinari, R-N.Y.

At times, the push for influence has gone over the ethical line. In 2006 Freddie Mac paid a $3.8 million civil penalty to the Federal Election Commission to settle charges that it had used corporate resources to stage 85 fundraising dinners that raised $1.7 million for candidates for federal office. In internal documents, Freddie Mac described the events as an exercise in "political risk management." The fine still stands as the largest in the FEC's 33-year history.

This past April, former Fannie Mae chief Franklin Raines and two top executives agreed to a $31.4 million settlement with the government over their roles in a 2004 accounting scandal.
Raines, the company's former chief financial officer, Timothy Howard, and former controller Leanne Spencer were accused in a civil lawsuit of manipulating earnings over a six-year period at Fannie. Raines was appointed by Clinton, after serving as White House budget director under Clinton.

Raines' predecessor, former Fannie Mae chief James Johnson, is a prominent Democrat who was an adviser to 2004 Democratic presidential nominee John Kerry and was selected by Obama to help vet his vice presidential prospects. But controversy over favorable loan deals he obtained with Countrywide Financial Corp., a bank seriously damaged by the mortgage meltdown decline, prompted him to abruptly resign that post in June.

McCain's campaign manager, Rick Davis, also has ties to Fannie Mae. He was president of the Homeownership Alliance, a Fannie Mae and Freddie Mac-led advocacy group. And Arthur B. Culvahouse Jr., a one-time White House counsel to President Reagan, is providing behind-the-scenes advice to McCain in the Republican's search for a running mate. Senate records show Culvahouse was registered to lobby on behalf of Fannie Mae and Lockheed Martin in a couple of instances several years ago, although his allies say his involvement was not extensive.

Congress and presidents have often looked favorably on legislation to encourage more homeownership, from the hallowed income tax deduction for mortgage expenses to setting up the Federal Housing Administration and Fannie and Freddie to help make affordable mortgages more available. President Bush has made the "ownership society" a main theme of his presidency.

Officials and lobbyists for Fannie and Freddie played on this political soft spot in making their case before Congress, establishing a record of fiercely protecting their domain and resisting efforts to bring tougher regulation.

"They have extraordinary powers and exercise them in a muscular way," said former Rep. Jim Leach, R-Iowa, who fought years ago to try to rein in the two companies' influence and growth. The former House Banking Committee chairman said the government should throw them a lifeline - but with a line of credit conditioned on full repayment plus a premium, as it did in loans that helped rescue Chrysler and Mexico.

Paulson on Sunday announced a plan to create a line of credit for Fannie and Freddie with an unspecified limit for 18 months and to give the Treasury authority to buy stock in the two companies.

The help for Fannie and Freddie is expected to be added to a broad housing bill scheduled for a House vote next week. Bush earlier threatened a veto over another part of the legislation.

House Speaker Nancy Pelosi, D-Calif., said Thursday she believes he will accept the measure, even with the provision he opposes, which is not related to the Fannie-Freddie issue. "The president is asking us to do something quite significant to address this housing crisis, which has long been neglected by his administration. ... I don't think the president is going to veto this bill," she told reporters.

The two companies defend their past actions and their financial integrity and say the current housing crisis will pass.

"Clearly there's some tough slogging ahead. We've got some challenges in the home ownership market to work through," said Fannie's CEO, Daniel Mudd.

Mike House, a lawyer-lobbyist who is executive director of FM Policy Focus, a financial watchdog coalition that monitors the two government-chartered mortgage companies, said the preferential treatment that Fannie and Freddie have enjoyed "came about because it was a strategy on their part, executed over a number of years."

"I think the original purpose (of Fannie and Freddie) is one that is needed in the marketplace," said House. "And I think that the legislation that is moving through Congress will provide strong regulatory oversight and will make sure everything is done in a balanced way."
 

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Bobm said:
Rep. Jim Leach, R-Iowa, who fought years ago to try to rein in the two companies' influence and growth.
WHAT?! Jim Leach, of the Gramm-Leach-Bliley act, tried to reign in influence? He's a co-sponsor of the bill that broke down the firewall that would've kept the current financial situation in the investment banks and out of the commercial banks. Of course he wants to blame Fannie and Freddie... it deflects blame off himself.

I'm so tired of both parties blaming each other... They both share blame. Democratic policies created the cult of home ownership, and Republican policies let Wall Street run wild with it.
 

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You may be correct but I want to point out its a excerpt from the linked article not something I wrote

Secondly I just posted that article to show all these bastards on both sides are crooked
 

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Yeah... I probably shouldn't have used the quote function... it does look like I thought you wrote it. That wasn't my intent at all. I'm just saying that I see it as a bit disingenuous coming from Jim Leach.

We definitely agree on the fact that there's enough blame to go around... of course, the time of year has both parties jockeying to try to leverage it against each other.
 

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Democratic policies created the cult of home ownership, and Republican policies let Wall Street run wild with it.
That sums it up nicely. :thumb:
 
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