I read this in yesterday’s FR postings and sent to just about everyone I know. The criminality that was/is Fanny and Freddy is beyond belief.
The Office of Federal Housing Enterprise Oversights report reported that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives.
Franklin Raines, Fannie Maes former chief executive officer, OFHEOs report shows that over half of Mr. Raines compensation for the 6 years through 2003 was directly tied to meeting earnings targets (by cooking the books).
Ex-Fannie CEO Franklin Raines (Clinton appointee) is a parasitic crook of the first order. This thief cooked the FM books precipitating losses of $9BILLION (that we know of) for the single purpose of creating $50 million fraudulent bonuses for himself (and millions for other F/M insiders). The SEC said Raines broke accounting rules by playing with risky derivatives.
The US Government filed suit against Franklin Raines when the depth of the F/M accounting scandal became clear. READ IT HERE http://housingdoom.com/2006/12/18/fannie-charges/
The Government noted, "The 101 charges reveal how the individuals 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.....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.)
Franklin Raines, left, Clinton's appointee to F/M, looted and pillaged Fannie Mae. Raines famously bought into the climate control scam w/ F/M funds. Then hooked up with Ohaha's Chicago mob who organized the Chicago Climate Exchange (now defunct).
REFERENCE Ex-Fannie CEO Franklin Raines should be behind bars for life. He is a crook of the first order. This thief Raines cooked the FM books precipitating losses of $9B (that we know of) for the single purpose of creating bonuses for himself and other F/M insiders. The SEC said Raines broke accounting rules by playing with risky derivatives.
RAINES COOKS THE F/M BOOKS---WALKS AWAY A MULTI-MILLIONAIRE After Raines was fired and exposed as a fraudster for cooking the govt books, Raines walked away w/ $90 million dollars, a $26 million parachute,
PLUS..... Raines gets a MONTHLY pension of $116,300 for life. Raines had already collected $4.87 million in special performance shares. Raines owns options giving him $5.8 million in net profit after redemptions, plus another $8.7 million in deferred compensation for six years at the F/M helm.
Raines keeps $5 million of paid-up life insurance. He and his spouse get free medical and dental benefits for life, worth over $1 million. Raines earned $20 million in salary, bonuses and stock awards (that we know of) in one year.
After he was fired, Raines told the F/M board that he's entitled to get paychecks until June 22 giving him another $600,000, which triggers a $2,000 monthly raise in his lifetime pension. He also said he's entitled to disputed options with a gross value of about $5.6 million. To keep Raines happy within philanthropic circles, Fannie Mae will match Raines' charitable contributions by $10,000 a year.
“In 1994, Bill Clinton proposed increasing homeownership through a ‘partnership’ between government and the private sector”
When you hear a politician propose a “public-private partnership”, grab your wallet and run like hell.
In return for campaign contributions and political support, large corporations will be granted license to raid the public coffers and create exclusive markets for their products.
As many of us remember, Clinton, at least ostensibly to save money, went from long to short in issuing bonds and notes to finance the Federal deficit, meaning it became somewhere between difficult to impossible to buy 30 year T-bills. Fannie and Freddy, being Government sponsored Enterprises with implied, but not explicit, guarantees for their paper stepped into the gap and started issuing long term mortgage backed securities, mostly backed by substantially worthless subprime mortgages. Nevertheless, those securities were treated as AAA investment grade due to the implied Federal guarantee by the rating agencies, which did not inquire about the soundness of the underlying paper. Hence, the substantially worthless Fannie/Freddie securities were in turn purchased by multiple pension plans and other institutions, all to the tune of about 4 $$ trillion, IOW about 4 $$ trillion of queer sold as AAA investment grade securities. Thus, when the whole thing collapsed in 2007-2008, the entire world economy was at risk, and we got TARP.
(------or else be tagged "RACIST!")
I agree. Does anyone know where I can find a few stats on the racial makeup of the F/M borrowers? I tend to think it was weighted very heavily toward families of color, but would like some proof, if it can be found.
I'm currently reading "Reckless Endangerment." Scary!