FANNIE MAE'S GOLDEN EGGS (Clinton suckup demands big bucks for incompetence)

NY POST ^ | January 2, 2005 | EDITORIAL

[Liz]

This sounds like nice work, if you can get it.

Help lose nearly $9 billion.

Get "fired."

Walk away with a golden-parachute package of $26 million plus a monthly pension of $116,300.

And fully paid health and dental insurance — for life.

As papers filed with the SEC last week show, the man in question with the sweetheart deal is Franklin Raines — now-departed CEO of Fannie Mae, the public-private non-banking entity that is America's primary mortgage lender.

However, the company's primary regulator, the Office of Federal Housing Enterprise Oversight, recently found accounting irregularities that would wipe out the company's $9 billion profit reported since 2001.

Despite this record, last year alone Raines pocketed $20 million in salary, bonuses and stock.

To keep the regulators at bay, Raines and his chief financial officer, Timothy Howard, were permitted to "retire."

Given Raines' political pedigree — he was the head of Bill Clinton's OMB — perhaps neither the fiscal shenanigans nor the retirement deal should surprise.

Fannie Mae's board approved this outrageous package with various deferred compensation and stock options — even as SEC regulators warned that the top executives shouldn't receive any bonuses.

Recall former NYSE head honcho Richard Grasso's controversial $200 million bailout deal:.......The common-sense judgment was that the compensation was excessive.

But there was never a question raised about Grasso's integrity or competence. Indeed, under his stewardship, the NYSE thrived.

Raines fails that test on both counts.

While the inquiry into the financial hijinks continues — Congress and the Justice Department are also investigating — further payments to Raines and Howard must be blocked.

For that matter, given behavior that most charitably can be described as incompetent, the real question is whether Raines or Howard are due any compensation at all.

Or whether they belong behind bars.

[Liz]

As the Raines-Fannie Mae outrage indicates, in an amazingly short period of time, American culture has segued from the glories of the meritocracy to rewarding not only gross imcompetency but even criminal behavior.

That we, the people, are expected to foot the bills for the anti-social activities of these greedy, pathological degenerates, is un-fricking-believable.

[andie74]

That we, the people, are expected to foot the bills for the anti-social activities of these greedy, pathological degenerates, is un-fricking-believable.

HEY! That reminds me...we still give Clinton a pension!

[JennysCool]

The federal workforce needs to be reorganized and half the positions eliminated. No one would notice the difference.

[Liz]

Heheh.....nice zinger.

If Clinton doesn't fit the description of an anti-social, greedy, pathological degenerate, nobody does.

[Elkiejg]

I guess the "movers and shakers" inside the Beltway didn't hear the voters when we said loud and clear ---- WE'RE MAD AS HELL AND WE'RE NOT GOING TO TAKE IT ANYMORE!! Clean up your act you slugs - we know how to fight now through the internet, phone calls, etc., etc.

[Liz]

I guess the "movers and shakers" inside the Beltway didn't hear the voters when we said loud and clear ---- WE'RE MAD AS HELL AND WE'RE NOT GOING TO TAKE IT ANYMORE!

Let's say it again.....louder. WE'RE MAD AS HELL AND WE'RE NOT GOING TO TAKE IT ANYMORE! ...............

Clean up your act you slugs - we know how to fight now through the internet, phone calls, etc., etc.

Heheh, they'll find out soon enough. We have just begun to fight.

[wheelright]

I heard the other day on either Boortz or Rush that another Clinonista might be involved. A caller said that Ms. Gorelick was on the board of directors and slipped out the back door just as things were heating up.

[FreePaul]

Yes we would notice the difference if the Federal work force were reduced by half. The remaining half would have to work twice as hard to spend all of that money. We would certainly take notice of Federal employees working for a change.

[JennysCool]

Oh, well, yeah. Good point!

[FreePaul]

Fannie Mae's board approved this outrageous package...

Let's shine some light on these people. Their names should be in every article printed about this scandal. Their actions make me think that they are helping cover up even more scandalous behavior by buying off this criminal.

BOARD

[ETERNAL WARMING]

"I guess the "movers and shakers" inside the Beltway didn't hear the voters when we said loud and clear ---- WE'RE MAD AS HELL AND WE'RE NOT GOING TO TAKE IT ANYMORE!!"

Are you kidding? They're LTAO at us! As the last election proves, the people refuse to hold them accountable no matter what they do. Until we wake up and realize our only power is the vote, expect things to continue on their downward spiral.

[Liz]

.....Ms. Gorelick was on the board of directors and slipped out the back door just as things were heating up.....

Figures.......she got out while the getting was good......typical behavior of a serial criminal.

[Mr. Bird]

I'm not going to get worked up over this just yet. Fannie Mae, despite many public perceptions, is not government. It's close, but not quite. Therefore, I'll let the regulators determine whether the compensation deal was whacky. We are talking about preposterous scale here; Fannie Mae has $1 trillion in assets. Wiping out a $9 billion profit? Who cares?

[wolfpat]

Yeah, but how can anyone spend money as fast as they're spending it now? Are they using it for fire wood?

[G-Man 1]

I think your idea of a congressional investigation is a good idea. I cant imagine some name making congressman not jumping on this.

[Liz]

Fannie Mae's board approved this outrageous package.......Let's shine some light on these people. Their names should be in every article printed about this scandal. Their actions make me think that they are helping cover up even more scandalous behavior by buying off this criminal.

We will also report them and their companies to the SEC. The Board Members' Enron-style accounting practices and their fiscal irresponsibility will be of interest to the SEC at this link:

enforcement@SEC.gov

---

FROM FANNIE MAE WEBSITE Fannie Mae has long combined excellent financial success with social responsibility. We fulfill our unique public mission through a strong management team. The day-to-day management of Fannie Mae and our approximately 5,055 employees is conducted by the corporation's officers, headed by the Interim Chief Executive Officer, and the Interim Chief Financial Officer. In 2004, the Administration declined to reappoint or replace the Presidential appointees to Fannie Mae's Board. Pursuant to current Charter Act provisions, those five Board positions will remain open unless and until the President names new appointees. To access any board member's biography, click on the Director's name.


Board Members

Stephen B. Ashley
Non-Executive Chairman of the Board, Fannie Mae
Chairman & Chief Executive Officer,
The Ashley Group
A group of commercial and multifamily real estate companies
Rochester, NY
Board member since 1995

Kenneth M. Duberstein
Chairman & Chief Executive Officer,
The Duberstein Group, Inc.
A strategic planning and consulting company
Washington, DC
Board member since 1998
Material relationship with Fannie Mae


Thomas P. Gerrity
Professor of Management,
The Wharton School
University of Pennsylvania
An educational institution
Philadelphia, PA
Board member since 1991

J. Timothy Howard
Resigned from Fannie Mae Board effective January 31, 2005



Ann Korologos
Lead Director, Fannie Mae
Vice Chairman, RAND Board of Trustees
A nonprofit organization
Washington, DC
Board member since 1994

Frederic V. Malek
Chairman,
Thayer Capital Partners
A private equity investment firm
Washington, DC
Board member since 2002


Donald B. Marron
Chairman & Chief Executive Officer,
Lightyear Capital
A private equity investment firm
New York, NY
Board member since 2001

Daniel H. Mudd
Vice Chairman & Interim Chief Executive Officer
Board member since 2000



Joe K. Pickett
Former Chairman & Chief Executive Officer,
HomeSide International Inc.
A mortgage banking company
Jacksonville, FL
Board member since 1996

Leslie Rahl
President & Founder
Capital Market Risk Advisors, Inc.
A financial advisory firm
New York, NY
Board member since 2004


H. Patrick Swygert
President,
Howard University
An educational institution
Washington, DC
Board member since 2000

John K. Wulff
Chairman of the Board,
Hercules Incorporated
A manufacturing company
Wilmington, DE
Board member since 2004



Last Revised: December 30, 2004





FANNIE MAE URL

http://www.fanniemae.com/governance/board/index.jhtml?p=Corporate+Governance&s=Board+of+Directors

[Liz]

See Post #16. We will also report them and their companies to the SEC. FM Board Members' Enron-style accounting practices and their fiscal irresponsibility will be of interest to the SEC at this link:

enforcement@SEC.gov

[lepton]

bookmark bump

[7.62 x 51mm]

"Walk away with a golden-parachute package of $26 million plus a monthly pension of $116,300..."

Effin' SOB should be in prison.

[Liz]

.....and it was also reported that Raines demands that Fannie Mae match his charitable contributions up to $10K per year.........talk about b***s.