Posted on 09/19/2008 9:33:47 AM PDT by STARWISE
Former Fannie Mae chairman and chief executive Franklin D. Raines has agreed to a multimillion settlement with a federal regulator over his alleged responsibility for improper accounting at the mortgage finance giant.
The regulator, the Office of Federal Housing Enterprise Oversight, said Raines had agreed to forgo stock, cash and other benefits worth $24.7 million in exchange for dismissing the charges against him. However, the regulator's estimate wasn't the only way of looking at the value of the settlement.
(Excerpt) Read more at voices.washingtonpost.com ...
"While I long ago accepted managerial accountability for any errors committed by subordinates while I was CEO, it is a very different matter to suggest that I was legally culpable in any way. I was not," he said. "This settlement is not an acknowledgment of wrongdoing on my part, because I did not break any laws or rules while leading Fannie Mae. At most, this is an agreement to disagree."
A slap on the wrist ... I am going to steal $80million, but then you can “punish” me by taking about $4 million back from me (the options are worthless).
it depends on what the meaning of the word “is”, is.
Hey, when you shake hands with Frank Raines make sure you count your fingers afterward. This guy is so crooked he can’t lie straight in bed.
To little, too late !!!!
These guys need to be investigated by the Justicce department. They won’t be but they should be. Along with Obama, and Dodd, and Rangel and the rest of the democrat culture of corruption.
~~DING!
Further to the article above:
“Announcing the administrative charges in December 2006, OFHEO Director James B. Lockhart III said the former executives “improperly manipulated earnings to maximize their bonuses . . . misleading the regulator and the public.” These charges cover 1998 to 2004.”
**********
Raines says housing bubble won’t burst
With home prices in the District up almost 78 percent in the past five years, there is growing concern there is a housing bubble that is about to burst - both locally and nationwide. Fannie Mae CEO Frank Raines, however, is dispelling those concerns.
In an interview with Bloomberg News, Raines, a former budget director in the Clinton administration, says the housing rally won’t end like the stock market did three years ago.
“We do not see any sign of a housing price decline nationwide, let alone the bursting of a bubble,” Raines is quoted as saying.
Federal Reserve Chairman Alan Greenspan made similar comments recently, saying that comparing the housing market to the stock market isn’t justified.
http://washington.bizjournals.com/washington/stories/2003/06/02/daily37.html
~~~~
This case has been ongoing for years.
OBAMA KNEW, when Raines came on board the campaign as ‘housing and mortgage advisor.’
Whattajoke.
Anyone heard any comments from Andrea Mitchell about this crisis, her husband’s policies, etc. ?????
Fannie, Freddie spent millions on lobbyingRaines, the company's former chief financial officer, Timothy Howard, and former controller Leanne Spencer were accused in a civil lawsuit of manipulating earnings over a six-year period at Fannie. Raines was appointed by Clinton, after serving as White House budget director under Clinton.
Raines' predecessor, former Fannie Mae chief James Johnson, is a prominent Democrat who was an adviser to 2004 Democratic presidential nominee John Kerry and was selected by Obama to help vet his vice presidential prospects. But controversy over favorable loan deals he obtained with Countrywide Financial Corp., a bank seriously damaged by the mortgage meltdown decline, prompted him to abruptly resign that post in June.
Former Fannie chief agrees to $24.7 million settlementWASHINGTON — Former Fannie Mae chief Franklin Raines and two other top executives have agreed to a $31.4 million settlement with the government announced Friday over their roles in a 2004 accounting scandal.
Raines, former Fannie chief financial officer Timothy Howard and former controller Leanne Spencer were accused in a civil lawsuit in December 2006 with manipulating earnings over a six-year period at the company, the largest U.S. financer and guarantor of home mortgages.
Raines, a prominent Washington figure who was President Clinton's budget director, is relinquishing company stock options, proceeds from stock sales and other benefits. His part of the settlement is worth $24.7 million,
Well, isn't that special. It's probably not the Franklin Raines he thought he knew.
And why isn't this guy going to jail, I'd like to know.
"Two members of Mr. Obama's political circle, James A. Johnson and Franklin D. Raines, are former chief executives of Fannie Mae."
Breathtaking, isn’t it SW? And let’s not forget our old friend Jamie Gorelick is smack-dab in the middle..once again!
Actually it does, unfortunately. From the article:
Raines had agreed to forgo stock, cash and other benefits worth $24.7 million in exchange for dismissing the charges against him.
In a rational world Raines would already be hanging by his heels from a lamp post somewhere.
L
I want to see Raines and Gorelick in orange jumpsuits!
PS .. wasn’t one much praised Obama trait that he was so intelligent?
Apparently, the left hand doesn’t know what the other left hand is doing.
Raines is actually saying that managerial accountability does not produce legal culpability? What kind of accountability is he referring to?
They’re democrats.
They’ll keep their spoils and write a book on how Bush made them do it and go on Oprah and other shows as heroes that defied the corrupt Bush regime.
Great Raines quotes you isolated there...LOL!!
Scary to think that these people could be running our government soon if we lose in Nov.
The stakes could not be higher!!
$2 million of this is being paid by an insurance policy. Presumably and Errors & Omissions policy, but I thought those wouldn’t pay off in case of illegal activity.
This sounds like an Affirmative Action Settlement with Raines.
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