The Government noted, "The 101 charges reveal how individuals (F/M insiders) improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public. The Notice explains how they submitted six years of misleading and inaccurate accounting statements and inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner."
These charges were made in 2006. The Court ordered Raines to return $50 Million Dollars he received in bonuses based on the misstated Fannie Mae profits. (Soon going to trial.)
Freddie and Fannie had huge lobbying budgets that they used for political contributions to keep regulators off their backs............AND RECEIVED HUGE GOVT BAILOUTS.
So which politicians get Fannie and Freddie political contributions? The top three U.S. Senators getting big Fannie and Freddie political bucks were Democrats and number two was (A) then-Senator Barack Obama who had only been in the Senate four years but still managed to grab the number two spot ahead of (B) John Kerry, decades in the senate, and (C) Chris Dodd then-chairman of the powerful Senate Banking Committee.
Fannie and Freddie were creations of the Congressional Democrats and the Clinton White House, designed to make mortgages available to more people, and as it turned out, many many people who couldnt afford them.
Fannie and Freddie have also been places for big Washington Democrats to get jobs and pocket millions---(legaklly and illegally).
Clinton appointed his White House budget director Franklin Raines to run Fannie........ Raines was fired for cooking the books so he could get massive $50 Million in bonuses PLUS a staggering exit package worth millions.
Jamie Gurilli Gorelick (now BP's attorney), a Clinton Justice Apartment Official, worked for Fannie and took home $26 million dollars.
Big Democrat Jim Johnson, recently on Obamas VP search committee hauled in millions from his Fannie Mae CEO job. Keep in mind, Obamas ads and stump speeches attacked Republican policies for the financial turmoil. But Fannie is demonstrably not Republican policy and worse, it appears then-Senator Obama, was at the head of the line when the piggys lined up at the Fannie and Freddie trough for campaign bucks...." - FoxNews, Sept. 2008
McCain spokeout on May 25, 2006, on behalf of the Federal Housing Enterprise Regulatory Reform Act of 2005: "Mr. President, this week Fannie Maes regulator reported that the companys quarterly reports of profit growth over the past few years were illusions deliberately and systematically created by the companys senior management, which resulted in a $10.6 billion accounting scandal.
The Office of Federal Housing Enterprise Oversights report says that Raines and other Fannie Mae bigwigs deliberately and intentionally manipulated financial reports to artificially hit earnings targets in order to trigger bonuses for senior executives like Gorelick.
It seems like where there is a scandal, there you will find Jamie Gorelick. I half expect to find her involved with Fast and Furious.