Skip to comments.Report: Fannie Mae Finance Chief, Controller Central to Failures ($11 Billion Accounting Mistate)
Posted on 02/23/2006 1:20:45 PM PST by Daytyn71
WASHINGTON An extensive investigation of embattled Fannie Mae (FNM) points to its former finance chief and controller as mainly responsible for the accounting failures at the mortgage giant now struggling to emerge from an $11 billion scandal, said a report released Thursday.
The report by a team of investigators led by former Sen. Warren Rudman also found that former chairman and CEO Franklin Raines, while not sharing direct responsibility, contributed to a culture of arrogance at the government-sponsored company. The report comes about 17 months after the revelation that federal regulators had discovered violations of accounting rules and earnings manipulation by the company to meet Wall Street targets.
(Excerpt) Read more at foxnews.com ...
This guy Franklin Raines should be in jail with Kenneth Lay and Bernard Ebbers.
What's the big deal? I've been that far off in my checkbook before.
I am sure that the punishment will mirror what Martha Stewart received.
Why didn't this get any attention? Why didn't Franklin Raines get sent to the slammer??? #1. He was a FOB... a friend of Bubba... I can't remember his title during the Clinton Administration, but he was one of the many fixers there, and he owed his job appointment to Fannie Mae to Bubba. This was another "plank" in Bubba's Bridge to the 21st Century! The #2 reason he's escaped any scrutiny/punishment: he's a minority and I don't think there are many DC prosecutors who want to try and make him out to be a bad guy... or to try to bring charges against him in a DC District Court. It wouldn't be worth the effort. Don't expect any justice to be served up to Mr. Franklin Raines.
Can we place an 11 billion dollar chargeoff on his Experian credit report ??
You got this case exactly right. Nothing will come of this. Sad, but true. Clinton convicts walk again.
Are We going to find out that the Tech boom of the 90's was nothing more than 'creative accounting'? All those 'paper millionaires' out there with nothing left to wipe their bottoms.