Skip to comments.Fannie regulator says scandal cost $30B
Posted on 06/19/2006 6:20:55 AM PDT by Hydroshock
Director of oversight agency says still finding control issues following the $11 billion accounting scandal. June 15, 2006: 1:59 PM EDT
WASHINGTON (Reuters) - Fannie Mae's $11 billion in accounting errors cost shareholders up to $30 billion, the acting director of the Office of Federal Housing Enterprise Oversight told a Senate panel on Thursday.
James Lockhart said his agency continues to find control problems at the mortgage finance company and that it will be many years before Fannie Mae (up $0.25 to $47.51, Charts) has the proper financial controls in place following an $11 billion accounting scandal.
(Excerpt) Read more at money.cnn.com ...
I need to research how much investors lost on Enron.
This could easily dwarf enron.
Worldcom was an 11bln bankruptcy ... Ebbers got 25yrs. Franklin Raines got 90mln - and because FNM is quasi government it did not go belly.
I just looked it up.
Enron collectively cost investors approximately $20 Billion. Thus this government backed financial fraud already dwarfs Enron.
When will we get justice in both this and FreddieMac?
Justice? Do you think we'll see it?
We most like will not.
Justice? We're still waiting for media coverage on this story.
Get Billy Clinton in for questioning, what did he know and when did he know it?
Jamie Gorelick got something near $25 million in bonuses over four years as Raines' deputy at Fannie Mae. There's an article on this in the current National Review magazine.
Fanny Mae, Ginny Mae, and Freddy Mac have never been profitable, they are just bail out agencies that keep borrowing to stay afloat. The solution when the others got too far in the hole has always been to create a new bailout agency which is why we have three now and will likely have four soon.
Remember this? Raines' golden parachute? Fannie Mae's ex-CEO Franklin Raines (Clinton appointee) was fired for bungling (cooking?) Fannie Mae's books after billion dollar accounting irregularities were uncovered.
When he was fired, 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.
Raines had already collected $4.87 million in special performance shares....and keeps $5 million paid-up life insurance. Mr/Mrs Raines get free med/dental benefits for life, worth over $1 million.
Raines earned $20 million in salary, bonuses and stock awards last year of his employment and said he was entitled to paychecks til June 22 adding another $600,000, which triggers 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 demanded F/M to match his charitable contributions by $10,000 a year.
He should get arrested and tried.
He should get arrested and tried......... and give back the money and perks he pocketed.
There are just so many ways to skin the financial cat.
I agree with you 100%.