Posted on 03/02/2006 3:08:59 AM PST by Liz
Franklin Raines — the ousted cooked-books chief of mortgage giant Fannie Mae — is being accused of corrupting its directors by giving them $12M in charity checks to ignore his scandals.
A federal shareholder suit yesterday claims that Raines lavished directors with generous donations to their favorite charities, funneled through a Fannie Mae charitable foundation he controlled for serving the needy......to "dominate his fellow board members" and prevent them from challenging his activities in a mounting $10.8 billion accounting scandal at Fannie Mae.
Raines who was chairman of Fannie Mae's board and the its charitable foundation, directed the money to charities on which the directors served as trustees or supporters.....In exchange, the directors looked the other way and kept quiet about raising questions in at least 78 board meetings when the issues arose.
The money also influenced directors to let Raines and his financial chief Timothy Howard to simply walk away from the mess with $135 million in golden parachutes, the suit said.
Among pet groups Raines "directed" cash to were the Brookings Institution, which got $3.9M, and John F. Kennedy Center, which got $2.9M. Director Kenneth Duberstein served as a trustee at both organizations, the suit says. Two other charities where Duberstien served as a director were the National Alliance to End Homelessness Inc., which got $1M, and Johns Hopkins University, which got $240,000, the suit said.
The Fannie Mae Foundation, begun in 1979, characterizes itself "as the largest foundation in the country devoted to affordable housing and the revitalization of communities." It says it provided $47.4 million in 2004 to 600 non-profit groups nationwide.
The Senate Finance Committee said (is) investigating whether the charitable foundations of Fannie Mae and Freddie Mac violated lobbying and campaign finance laws.
(Excerpt) Read more at nypost.com ...
A bona fide parasite---Fannie Mae's ex-CEO Franklin Raines (a Clinton appointee) was fired for bungling (cooking?) Fannie Mae's books after billion dollar accounting irregularities were uncovered. Raines was scheduled to get a $26 million tax paid parachute — not counting a monthly tax-paid pension of $116,300 for life. He owns options giving him $5.8 million in net profit plus another $8.7 million in deferred compensation and had already collected $4.87 million in special performance shares. He keeps $5 million paid-up life insurance paid for by taxpayers. Mr/Mrs Raines get free med/dental benefits for life, worth over $1 million.
Raines earned $20 million in salary, bonuses and stock awards the year before he was ousted......then sallied forth saying he was entitled to paychecks way after he was ousted thus adding another $600,000, which triggered a $2,000 monthly raise in his lifetime pension. Raines also laid claim to disputed options with a gross value of about $5.6 million, and....
.....get this..... Raines wanted F/M to match his charitable contributions by $10,000 a year. I guess that helped trigger the current lawsuit.
Is there any single part of America that hasn't felt the corruption of the Clintonistas?
Franklin Raines - another x42i hack
Wonder what x42's cut of the $10B scam was?
The 1998 Wickersham Award for exceptional public service and dedication to the legal profession was recently presented to Jamie Gorelick . The award is given annually in connection with the main fund-raising event of LC's Friends of the Law Library, a dinner that traditionally takes place in the U.S. Supreme Court building."Jamie Gorelick has been a distinguished lawyer in private practice and government service. She combines outstanding professional accomplishments with a strong commitment to the public interest," said Abe Krash, president of the Friends, in his introduction. Ms. Gorelick served as general counsel of the Defense Department and subsequently as the deputy attorney general in the Justice Department in 1994-97 before assuming her present duties as vice chair of Fannie Mae, the congressionally chartered provider of home mortgages.
http://www.loc.gov/loc/lcib/9805/law.html
I have wondered if anyone was looking into Raines and his deals. Seems to me like he was way overpaid even if he hadn't been a crook.
No, and if you'll look a little farther you'll see that many of our politicians are corrupt too. I'm amazed to see just how bad it is in DC. I'm saddened to see how many Republicans are dirty too. Money and power corrupt.
The current suit over so-called "charity" contributions was surely launched based on the self-same suspicions you mention.......and as a result of investigations into Raines greed and corruption which got widespread coverage.
"Public service" award, my Aunt Tilly.
Why Gorelick has not been nailed for malfeasance is an outrage.
RAINES, FRANKLIN
WASH, DC 20008
FANNIE MAE
BONIOR, DAVID E
VIA BONIOR FOR CONGRESS
12/29/1999 500.00 20035261564
RAINES, FRANKLIN
WASHINGTON, DC 20008
TORRICELLI, ROBERT G
VIA TORRICELLI FOR U S SENATE INC
06/30/1999 500.00 99020070445
RAINES, FRANKLIN
WASHINGTON, DC 20008
FANNIE MAE
BENTSEN, KENNETH EDWARD JR
VIA KEN BENTSEN FOR CONGRESS COMMITTEE
10/21/2000 1000.00 20036670553
BOND, CHRISTOPHER S
VIA MISSOURIANS FOR KIT BOND
11/18/2003 1000.00 24020070966
CARPER, THOMAS R
VIA CARPER FOR SENATE
04/11/2003 1000.00 23020293534
CLINTON, HILLARY RODHAM
VIA HILLARY RODHAM CLINTON FOR US SENATE COMMITTEE INC
04/27/2000 1000.00 20020222609
DODD, CHRISTOPHER J
VIA FRIENDS OF CHRIS DODD
06/27/2000 500.00 20020241084
09/29/2003 1000.00 23020382250
JOHNSON, TIM
VIA TIM JOHNSON FOR SOUTH DAKOTA INC
12/29/1999 500.00 20020032071
10/26/2002 1000.00 22020940618
LAUTENBERG, FRANK R
VIA LAUTENBERG FOR SENATE
10/26/2002 1000.00 22020941978
RAINES, FRANKLIN
WASHINGTON, DC 20008
FANNIE MAE/CEO
WALL JR, JAMES RICHARD
VIA WALL FOR CONGRESS
12/04/2005 250.00 26970051311
RAINES, FRANKLIN
WASHINGTON, DC 20008
FANNIEMAE
SARBANES, PAUL S
VIA CITIZENS FOR SARBANES
04/26/1999 1000.00 99020064424
RAINES, FRANKLIN
WASHINGTON, DC 20016
FANNIE MAE
DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE
09/30/2004 5000.00 24020891795
RAINES, FRANKLIN
WASHINGTON, DC 20016
FANNIE MAE/CHAIRMAN & CEO
KANJORSKI, PAUL E
VIA PENNSYLVANIANS FOR KANJORSKI
10/16/2002 1000.00 22992393091
RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIE MAE
BAYH, EVAN
VIA EVAN BAYH COMMITTEE
03/28/2003 1000.00 23020171297
BENTSEN, KENNETH EDWARD JR
VIA KEN BENTSEN FOR US SENATE COMMITTEE
01/16/2002 1000.00 22020150565
BOND, CHRISTOPHER S
VIA MISSOURIANS FOR KIT BOND
08/04/1998 1000.00 98020212373
BYRD, ROBERT CARLYLE
VIA FRIENDS OF ROBERT C BYRD COMMITTEE
12/31/1999 500.00 20020021057
DASCHLE, THOMAS ANDREW
VIA A LOT OF PEOPLE SUPPORTING TOM DASCHLE INC
07/15/2004 2000.00 24020881574
DEDICATED AMERICANS FOR THE SENATE AND HOUSE PAC
09/17/1999 1000.00 99034980232
FRIENDS OF PHIL GRAMM PAC
05/08/2000 1000.00 20020242321
FUTURE PAC - FEDERAL
10/18/2000 1000.00 20036403515
HARMAN, JANE
VIA FRIENDS OF JANE HARMAN
12/30/1999 250.00 20035233283
KANJORSKI, PAUL E
VIA PENNSYLVANIANS FOR KANJORSKI
12/31/1999 500.00 20035170309
KIRK, RONALD
VIA RON KIRK FOR U S SENATE
10/10/2002 1000.00 22020800366
LAFALCE, JOHN J
VIA FRIENDS OF JOHN LAFALCE
10/23/1998 500.00 98034091646
NATIONAL LEADERSHIP PAC
09/28/1998 1000.00 98033602331
REID, HARRY
VIA FRIENDS FOR HARRY REID
10/24/2002 1000.00 23020052067
03/31/2003 1000.00 23020170127
07/22/2004 1000.00 24020672028
ROBB, CHARLES S
VIA ROBB FOR THE SENATE
10/13/2000 500.00 20020360336
SCHUMER, CHARLES E
VIA FRIENDS OF SCHUMER
07/18/2003 1000.00 23020451120
RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIE MAE/CEO
FORD, HAROLD E JR
VIA HAROLD FORD JR FOR TENNESSEE
05/27/2003 1000.00 23991357621
LEADERSHIP PAC 2006
04/11/2003 1000.00 23990963702
RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIE MAE/CHAIRMAN
NATIONAL LEADERSHIP PAC
12/17/2003 1000.00 24990316133
RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIE MAE/CHAIRMAN & CEO
FEDERAL NATIONAL MORTGAGE ASSOCIATION POLTICAL ACTION COMMITTEE AKA FANNIE MAE PAC
12/12/2003 5000.00 24990251530
RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIE MAE/CHAIRMAN OF THE BOARD
FEDERAL NATIONAL MORTGAGE ASSOCIATION POLTICAL ACTION COMMITTEE AKA FANNIE MAE PAC
03/15/2004 5000.00 24991134828
RAINES, FRANKLIN D
WASHINGTON, DC 20008
FANNIEMAE
CONRAD, KENT
VIA FRIENDS OF KENT CONRAD
06/16/1999 1000.00 99020090288
FEINSTEIN, DIANNE
VIA FEINSTEIN FOR SENATE
05/20/1999 1000.00 99020073189
OBAMA, BARACK
VIA OBAMA FOR ILLINOIS INC
06/14/2004 1000.00 24020461972
SHELBY, RICHARD C
VIA SHELBY FOR U S SENATE
12/12/2001 1000.00 22020043062
06/13/2003 1000.00 23020270751
RAINES, FRANKLIN D
WASHINGTON, DC 20008
FEDERAL NAT'L MORTGAGE ASSO
SPRATT, JOHN M JR
VIA SPRATT FOR CONGRESS COMMITTEE
10/20/1998 1000.00 98033961515
RAINES, FRANKLIN D
WASHINGTON, DC 20016
FANNIE MAE
BOWLES, ERSKINE B
VIA ERSKINE BOWLES FOR US SENATE
08/08/2002 1000.00 22020622716
08/08/2002 1000.00 22020622716
02/10/2004 2000.00 24020280596
07/20/2004 2000.00 24020853430
RAINES, FRANKLIN D.
WASHINGTON, DC 20008
FANNIE MAE/CEO
AMERICAN LIBERTY POLITICAL ACTION COMMITTEE
07/16/2003 1000.00 23991797969
MATSUI, DORIS
VIA MATSUI FOR CONGRESS
01/27/2005 1000.00 25990101262
RAINES, FRANKLIN D.
WASHINGTON, DC 20008
FANNIE MAE/CHAIRMAN/CEO
EMANUEL, RAHM
VIA FRIENDS OF RAHM EMANUEL
11/20/2001 1000.00 22990368294
RAINES, FRANKLIN D.
WASHINGTON, DC 20008
FANNIE MAE/EXECUTIVE
PAC TO THE FUTURE
03/20/2003 1000.00 23990755315
RAINES, FRANKLIN D. MR.
WASHINGTON, DC 20008
FANNIE MAE/CHAIRMAN
GORE, AL
VIA GORE 2000 INC
04/04/2000 1000.00 20990123718
Maybe he can run for mayor of New Orleans................
Liz, when was Raines ousted from FANNIE MAE, do you recall?
The terrible thing here ... this is ALL taxpayer money!
You wint see this in the MSM.
Fannie Mae's directors on Dec. 21, 2004 removed Raines and CFO Timothy Howard after after the Securities and Exchange Commission ruled that from 2001 until mid-2004 the company made accounting "mistakes."
OFHEO | September 22, 2004 | Office of Federal Housing Enterprise Oversight
Federal regulator OFHEO released a damning report on accounting irregularities at mortgage finance giant Fannie Mae. One critical finding was that in 1998, Fannie misstated expenses in order to meet earnings targets that triggered huge executive bonuses. The report states:
1998 Salary and Bonus of Senior Fannie Mae Executives
Officer Title Salary AIP Award/Bonus
James A. Johnson Chairman and CEO $966,000 $1,932,000
Franklin D. Raines Chairman and CEO Designate $526,154 $1,109,589
Lawrence M. Small President and COO $783,839 $1,108,259
Jamie Gorelick Vice-Chairman $567,000 $779,625
J. Timothy Howard EVP and CFO $395,000 $493,750
Robert J. Levin EVP, Housing and Comm. Develop. $395,000 $493,750
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