Skip to comments.PRUDEN: No more Wall Street encores
Posted on 09/16/2008 4:28:22 AM PDT by rellimpank
Once upon a time, Wall Street bankers caught in the traps of their own avarice would be searching by now for the taller skyscrapers in town, looking for good places to jump.
Richard Fuld, the chairman of what only yesterday was Lehman Brothers, has a suite of grandly furnished offices on the 31st floor of his building - assuming security has not already been called - but that might not be quite high enough. But the only flier he'll be taking is aboard a jet plane big enough to haul himself and the $22 million bonus he'll collect as he leaves for parts unknown. The door won't even bang his ample rear end on the way out.
(Excerpt) Read more at washtimes.com ...
I would settle for a repeal—for certain extraordinary circumstances—of bills of attainder. People like Fuld should not be able to walk away from their messes into a lucrative obscurity.
The clown needs his ass thrown in jail. He did great damage to his own employees, the American people and our economy overall.
and now he is going to take the money and run ?
He should be in jail. Right now.
These were the FNMA players from 1998-2003 who set the stage to loot FNMA by cooking the books to qualify for mega salaries and bonuses
Jamie Gorelick (Clinton dep AG) = $26 MILLION
“Even though she had no previous training nor experience in finance, Gorelick was appointed Vice Chairman of FNMA from 1997 to 2003. She served alongside former Clinton Administration official Franklin Raines, and earned over 26 million during her six years there. During that period, FNMA developed a $10 billion accounting scandal. One example of falsified financial transactions that helped the company meet earnings targets for 1998, a “manipulation” that triggered multimillion-dollar bonuses for top executives. Gorelick received $779,625. On March 25, 2002, Business Week interviewed Gorelick about the health of “Fanny Mae”. Gorelick is quoted as saying, “We believe we are managed safely. We are very pleased that Moody’s gave us an A-minus in the area of bank financial strength — without a reference to the government in any way. Fannie Mae is among the handful of top-quality institutions.” One year later, Government Regulators “accused Fannie Mae of improper accounting to the tune of $9 billion in unrecorded losses”.
Franklin Raines (Clinton director OMB and current Obama advisor) = $90 MILLION
This guy was Clinton’s OMB director and widely hailed as a genius first African American to hold the job (sound familiar?). His avarice while at helm of FNMA is breathtaking- you must web search to read about this for yourself. There is too much to post. Unsure of whether he was directing his own looting or was a useful tool who was richly paid to allow unfettered teat sucking by others.
James Johnson (Obama advisor) = $21 MILLION (1998 only)
Timothy Howard, CFO = $30 MILLION
The most recent teat-suckers
Daniel H. Mudd b. 1956 is the former President and CEO of Fannie Mae. He holds a B.A. degree from the University of Virginia, and a M.P.A. from the John F. Kennedy School at Harvard University. He had previously been President and Chief Executive Officer of GE Capital, Japan.
He is son of TV anchor, Roger Mudd.
Mudd was dismissed as CEO of Fannie Mae when FHFA stepped in as conservator on September 7, 2008. The government has advised him that his severance package will not be paid.
Richard F. Syron
Richard F. Syron is a former chairman and chief executive officer of the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. He previously served as chairman and CEO of Thermo Electron Corp., and as CEO of the American Stock Exchange. Syron was graduated from Boston College with a bachelor’s degree and earned advanced degrees in economics from Tufts University.
He served as assistant to Paul Volcker, then the chairman of the Federal Reserve Board, in 1981 and 1982, and previously served as deputy assistant secretary of the United States Treasury. In that with responsibility for developing the department’s position on all domestic economic policy issues, and extensive interaction with other executive branch agencies, Congress and the public.
In 2004, David Andrukonis, the chief risk officer of Freddie Mac, warned Syron of increasing risk in Freddie Mac’s portfolio. Syron declined to act, citing pressure from congressional Democrats.
In December 2007, Syron told financial analysts that he expected Freddie Mac would incur heavy losses because of the weakening housing market and rising mortgage defaults. Despite these forecasts, and concerns over the fiscal stability of Freddie Mac due to larger-than-expected write-offs, Syron reportedly took home over $19 million in cash, stocks, and other executive compensation in 2007. Mr. Syron was terminated September 6, 2008, under a Federal Housing Finance Agency plan for conservatorship of Freddie Mac. It is unknown as of yet if he will receive a severance package
The regulator of Fannie Mae and Freddie Mac provided details on planned payments to the companies’ recently ousted chief executives.
The Federal Housing Finance Agency, or FHFA, announced Sunday a decision to bar “golden parachute” severance payments to Daniel Mudd, who was ousted at Fannie, and Richard Syron, who was forced to leave Freddie. But an FHFA official said Monday that Messrs. Mudd and Syron still are eligible for the pensions and 401k savings plans they built up while working at the two giant mortgage investors.
Mr. Mudd’s pension and 401k plan has an estimated current value of $5.6 million, the official said, and for Mr. Syron the figure is $4 million. But the FHFA won’t allow additional severance payments of about $2.3 million that could have gone to Mr. Mudd and $10.3 million for Mr. Syron.
Friends of Barack
"The trouble started when John Succo, trading manager at Lehman Brothers equity derivatives volatility desk, agreed to speak at an investment conference sponsored by Grants Interest Rate Observer.
After discussing the pricing of risk and the correlation between equity derivatives and the underlying stock market for a while, Succo was asked a question. I dont think my boss is here, so Ill address that, he responded. I dont think that the people running our firm, our equity floor, have any idea of the things that we actually do, of how we...(audience laughter) Im serious...of how we hedge, the products that were involved with, the amount of risk we take or the lack of risk we actually take.
Ms. Gorelick eventually recused herself from reviewing her own role in the regulation of information about terrorist activities. Attorney General Ashcroft was incensed before the 9/11 commission to learn that the commission had not investigated or been told of Gorelick's memo or her role regarding the "wall". This assertion was disputed by former senator Slade Gorton (R-WA), a member of the 9/11 Commission, who said, "nothing Jamie Gorelick wrote had the slightest impact on the Department of Defense or its willingness or ability to share intelligence information with other intelligence agencies." Gorton also asserted that "the wall" was a long-standing policy that had resulted from the Church committee in the 1970s, and that the policy only prohibits transfer of certain information from prosecutors to the intelligence services and never prohibited information flowing in the opposite direction.
However, the "Gorelick Wall" barred anti-terror investigators from accessing the computer of Zacarias Moussaoui...........
I expect if our admnistration and GOP is so cowed by the democrats that they let Jamie Gorelick be a member of the panel investigating 9-11- we can also expect to see her heading a panel to investigate FNMA.
Without evidence to explain such things, the primary motivation factor of stupidity, and in the Re publican’s case, a heavy dose as you noticed, of cowardliness.
It would be a great pity if they are the only one left standing.
In a just Wall Street...they would have been first to go.