Skip to comments.The super-villain of subprime unmasked! (and it's not Angelo Mozilo)
Posted on 11/16/2010 10:57:07 AM PST by Riflema
As detailed in this previous clip, co-authors Bethany McLean and Joe Nocera say there's plenty of blame to go around, from Alan Greenspan .....
(Excerpt) Read more at finance.yahoo.com ...
Who else was a director of this fine institution?... why, none other than the very lovely Devall Patrick, Governor of Massachusetts and best bud of 0bama. Funny how this book/author gets this word out in mid-November rather than mid-October when it might have had a little more topicality eh?
Nope, the liberals in Congress who decided to make rules to encourage those who couldn’t afford a mortgage would get one anyway. Everything else is a blame game.
Liberals meaning both Democrat and Republican, of course.
Your typical eeeevil capitalist diatribe in other words.
As a Mass resident, I'm tickled that they finger Devall's old boss. They just fingered him a month too late to help.
It had nothing to do with Fannie, Freddie, Bill Clintons
Community Reinvestment Act, Affirmative Action Lending,
Barney Frank and pals who refused to control Fanny
whilst being robbed by their pals like Rahm Emanuel,
Franklin Raines and Jamie Gorelick, etc.
It was all the doing of a Republican appointed Ambassador to the Netherlands.
That and it was Bush's Fault!
Eat up folks!
Mr. Johnson improperly deferred $200 million in expenses as the CEO of Fannie Mae. Fannie Mae underreported Johnsons compensation, which was originally reported as $6 to $7 million. Documents show that Johnson actually received $21 million. He was a contributor to Barack Obamas campaign and gave the personal maximum allowable donation of $4,600.00. Currently, Jim Johnson is a wealthy private banker and is on the board of Goldman Sachs, which has donated another $700,000.00 (seven hundred thousand) to Barack Obamas campaign, and raised another $500,000.00 (five hundred thousand) through bundling. In June of 2008 it was announced that Jim Johnson quit as an Obama advisor because of pressure on account of his involvement in the current financial crisis. Jim also received a sweetheart loan from Countrywide Mortgage.
Franklin Raines is Barack Obamas housing issues advisor. Mr. Raines currently lives in a house valued at approximately $7.6 million dollars. Raines served as an advisor in the Carter administration from 1977 to 1979 when the CRA was first enacted. From 1980 to 1991 he was an investment banker with Lazard Ltd. From 1991 to 1996 he was the Vice Chairman of Fannie Mae, when the CRA was expanded to include subprime loans. From 1996 to 1998 he was the OMB (Office of Management and Budget) director for the Clinton administration. From 1999 to 2004 he was the CEO of Fannie Mae. He received a $25 million dollar golden parachute upon his departure. He also received a sweetheart loan from Countrywide Mortgage sometime between 1996 and 2004.
Under Franklin Raines leadership as chairman and CEO, Fannie changed its charter to a more high-risk enterprise of buying mortgages and holding onto them. Fannie also overstated earnings by a mind-boggling $10.6 Billion and paid Raines and his management team massive bonuses tied to Earnings Per Share (EPS). Any company can hit its EPS targets if they dont worry about minor details such as accounting rules, debt levels and risk factors. Franklin Raines pulled in a total of $90 million between 1999 and 2003, the majority from bonuses. In 2004 the SEC (US Securities and Exchange Commission) and OFHEO (Office of Federal Housing Enterprise Oversight) sued Raines to recover some $50 million of his bonuses based on Enron-like accounting practices. Civil charges were also filed against Raines. As a result, Raines agreed to an early retirement, paid hefty fines and gave up lucrative retirement benefits (stock options valued at $15.6 million) for his role in accounting errors.
Franklin Raines resigned from Fannie Mae due to accounting irregularities. From 1989 to 2008, Barack Obama received $126,349 in campaign support from Fannie Mae. This is four times more money from Fannie Mae per year than any other senator. Its 49 times more than John McCain. The lawfirm, Miner, Barnhill, and Galland sued banks for not issuing enough subprime loans. They sued Citibank. Obama was a junior lawyer on the team that sued Citibank. What were seeing is bad government regulation that made banks become predatory lenders to fulfill a government mandate; to offer souped up, shell game, Affordable mortgages.
Now tell us again who caused the financial crisis. Oh yeah, it was the Republican Culture of Corruption!