(no subject)
1. 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.
2. 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!
3. 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?
1. FRANKLIN RAINES? Raines works for the Obama Campaign as Chief Economic
Advisor
2. TIM HOWARD? Howard is also an Economic Advisor to Obama
3. JIM JOHNSON? Johnson hired as a Senior Obama Finance Advisor and was
selected to run Obama's Vice Presidential Search Committee