Skip to comments.SEC Sues Former Fannie, Freddie Executives
Posted on 12/16/2011 7:46:14 AM PST by navysealdad
NEW YORKThe Securities and Exchange Commission sued several former executives of Fannie Mae and Freddie Mac, including their former chief executives, alleging they misrepresented to investors their exposure to subprime mortgage loans.
(Excerpt) Read more at online.wsj.com ...
Don’t forget Obama bundler James Johnson, he was gorging at the taxpayer trough as well.
In 1990, Johnson became vice chairman of Fannie Mae, or the Federal National Mortgage Association, a quasi-public organization that guarantees mortgages for millions of American homeowners. In 1991, he was appointed chairman and chief executive officer of Fannie Mae, a position he held until 1998.
An Office of Federal Housing Enterprise Oversight (OFHEO) report from September 2004 found that, during Johnson’s tenure as CEO, Fannie Mae had improperly deferred $200 million in expenses. This enabled top executives, including Johnson and his successor, Franklin Raines, to receive substantial bonuses in 1998. A 2006 OFHEO report found that Fannie Mae had substantially under-reported Johnson’s compensation. Originally reported as $67 million, Johnson actually received approximately $21 million.
Economics is apparently boring....
They are going after Syron and Mudd, the Bush-Era CEOs, and NOT Democrats Franklin Raines, who pocketed ONE HUNDRED MILLION DOLLARS cooking Fannies books, or Obama Advisor Jamie Gorelick, who pocketed $25 million from the same scam.
IMAGINE THAT, EH?
This needs to be repeated over and over. The list of people who perpetuated this fraud is much bigger than those named in this action. However, this is a start and I expect that these folks will testify that they based their numbers on those given by the former executives.
When you study the housing crisis and the actions of Freddie/Fannie you will find the biggest fraud and growth occurred under the people you named who also received the largest bonuses driven by fraudulent numbers.
This explains Barney Frank’s announcement to retire - he got advance wind of this.
Barrrney oh Barrrney...
Could you come here for a moment please?
Bull, not knowing the laws and rules of congress is a terrible thinks. Barney the queer has immunity, just as all congress critters do, have you not read one word of the insider trading stuff. And the lisp was minority leader for most of the time of the bubble. I doubt newt was calling him.
“It now appears that all executions are on hold until this matter is decided. ...”
your comments are incoherent.
Is this a joke? No Franklin Raines, No Jim Johnson, No Jamie Gorelick. Just a dog and pony show. I realize the SEC is looking at disclosures around the 2008 collapse timeframe, but Mudd and Syron were basically having to do the equivalent of finding the smelliest turds in the port-o-let after it was at occupy wall street for two weeks. They should be pursuing the defecants, not Mudd and Syron.
Fannie/Freddie are centerpieces of the criminal enterprise called the Democrat Party---where Dem cronies and collaborators loot the organization, get cushy jobs, bonuses, and the like.
Fannie Maes political machine dispensed campaign contributions, gave jobs to friends and relatives of legislators, hired armies of lobbyists (even paying lobbyists not to lobby against it), paid academics who wrote papers validating the home ownership mania, and spread charitable contributions to housing advocates across the congressional map.
Fannie Mae serves as an industrial-sized patronage factory -- sharing profits with political allies, spreading taxpayer funds to voting blocs----like ethnic groups-----and doling out jobs to left-wing academics, Washington has-beens and back-scratching buddies. Obama insider Fannie Mae exec Jim Johnson got sweetheart loans from shady subprime Countrywide. Pols raked in six-figure salaries as F/F engaged in Enron-sstyle accounting, plunged into debt and helped usher in the subprime housing meltdown through cockamamie lending practices.
Bill Clinton appointed Franklin Raines, Daley and Rahm Emanuel just as the quasi-governmental F/M engaged in rampant book-cooking so that F/M insider could help themselves to massive bonuses. The Chi/Tribune exposed how Emanuel's "profitable stint" was low-show w/ no work involved. Emanuel was not even assigned to committees, according to company proxy statements.
Immediately upon joining the board, Emanuel and other insiders qualified for $380,000 in stock and options plus a $20,000 annual fee, public records indicate. W/ Wall Street Emanuel there, accounting tricks were used to mislead shareholders about outsize profits F/M reaped from risky investments. The goal was to cook the books to keep fraudulent earnings on the books, to make Freddie Mac look profitable on paper-----AND to fraudulently obtain humongous annual bonuses for political insiders.
Freddie and Fannie, the two big quasi-govt mortgage banks that HAVE ALREADY RECEIVED HUGE federal bailouts, had huge lobbying budgets that they used for political contributions to keep regulators off their backs.
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 then-Senator Barack Obama who had only been in the Senate little over 2 years, but still managed to grab the number two spot ahead of John Kerry, decades in the senate, and 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, some many many who couldnt afford them. Fannie and Freddie have also been places for big Washington democrats to go to work in the semi-private sector and pocket millions.
The Clinton Administrations White House budget director Franklin Raines was appointed by Clinton to run Fannie........ and collected $50 million dollars. Jamie Gurilli Gorelick (now BP's attorney), a Clinton Justice Apartment Official, worked for Fannie and took home $26 million dollars in mfg bonuses.
Big Democrat Jim Johnson, recently on Obamas VP search committee hauled in millions from his Fannie Mae CEO job. Now remember, Obamas ads and stump speeches attacked McCain and Republican policies for the financial turmoil. It is demonstrably not Republican policy and worse, it appears the man attacking McCain, 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
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.)
On top of the $50M he looted from the govt (for cooking the boooks for which he was fired), Raines also walked away with a tax-paid exit package worth $90 million.
“And Barney Frank will be right behind them pumping up their morale.”
Please, show some class. Don’t use the words Barney Frank and “pumping” in the same sentence. It conjures up pictures in one’s mind that would cause the Mods to ban you!
They "Worked" to close them, which means they didn't. Lemme guess, they "fixed" it so that only Democrats will be allowed to steal.
That other guy who was Gore’s lawyer during Whitewater (Jack ?) also got a seven figure bonus. Let’s see him frog-marched.
I’m sorry and I sincerely apologize to anyone who may have been offended by my use of the words “Barney Frank”, “behind” and “pumping”. I can be as classy as anyone. I didn’t say anything like Barney Frank can’t fart anymore because his behind is too tired to pucker. Now, that would be classless.
Let’s see, if paid say, $25 million for essentially wrong doing over the course of your term of employment and the offer is no jail time and a fine $5 million, what would you do? The ‘you can’t be CEO of a big company anymore’ is a nice touch.
Maybe, the Fanny/Freddy crooks, Dodd and the maggot infested Frank, might get to spend sometime in a prison for formerly rich rats.
Thanks, you just ruined my lunch, and it is my wife’s time to buy lunch!
more doodoo rising .. question is when will it reach folk like andrew cuomo HUDman, barney buttflake& hisbordello_buddy, raines, gorelick, ..
ya need a mighty stiff wind to blow just right.. mmm.. maybe ,, someday.. hopefully sooner not later..