Posted on 10/08/2010 10:26:59 PM PDT by Sub-Driver
Donilon's résumé: Policy, law and Fannie Mae By: Josh Gerstein and Abby Phillip October 8, 2010 08:17 PM EDT
To many in the foreign policy community, Tom Donilon’s selection Friday as national security adviser to President Barack Obama was a deserving reward for a consummate professional, a corporate lawyer who worked his way up through the foreign policy ranks over the years and is credited with holding the National Security Council together during the uncertain leadership of James Jones.
But one part of Donilon’s résumé that went unmentioned in the Rose Garden Friday — the six years he spent as a top executive of Fannie Mae at the height of the housing boom — made him a problematic choice for any Obama administration job that requires Senate confirmation.
Donilon left the firm as it was mired in an accounting scandal in 2005, three years before Fannie Mae’s spectacular collapse when the mortgage market imploded in 2008. Investigators never accused Donilon of wrongdoing in the accounting scandal, but Fannie ultimately paid $400 million to the federal government to settle charges that the company misstated its earnings between 1998 and 2004. The government sued three top Fannie Mae executives to recover millions in bonuses based on the allegedly falsified reports, but Donilon was not among them.
A former official who led one of the main investigations into Fannie Mae said Friday that Donilon didn’t play a role in the misstatements but tried to pressure lawmakers to derail the probe.
“He was in charge of the lobbyists. ... That process involved using the Hill to rein in the regulators,” said Stephen Blumenthal, former acting director of the Office of Federal Housing Enterprise Oversight.
(Excerpt) Read more at dyn.politico.com ...
As if his utter corruption wasn’t bad enough......he’s a Code Pinker at heart.
Fannie/Freddie are the key criminal mechanisms of the criminal enterprise that is the criminal Democrat party and its minions. read on.
The Government filed suit against F/M head 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. 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 mis-stated Fannie Mae profits. (Did Raines ever return the money?)
Franklin Raines looted and pillaged Fannie Mae as Clinton's appointee. Raines famously bought into the climate control scam w/ F/M funds. Now he's hooked up with Ohaha's Chicago mob who organized the Chicago Climate Exchange.
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.
COOOKS THE F/M BOOKS---WALKS AWAY A MULTI-MILLIONAIRE After Raines was outed for cooking the 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 next June 22 giving him another $600,000, which triggers a $2,000 monthly raise in his lifetime pension. He also says 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.
Why are there no pictures of this clown?
In 1991, Frank's live-in boyfriend, Herb Moses, was hired by Fannie. The Boston Globe reported that Frank pushed the agency to loosen regulations on mortgages for 2-3 family homes, even though they were defaulting at twice and five times the rate of single homes.
Three years later, President Clinton’s HUD tried to impose a new regulation on Fannie, but was thwarted by Bwaney Frank.
Clinton now blames Democrats for planting the seeds of today’s economic crisis. "I think the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac," Clinton said recently.
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Rahm Emanuel was appointed to the Freddie Mac board Feb 2000 by Bill Clinton, after serving as Clinton's White House political director. Emanuel was a vocal defender of Clinton after scumbag Monica Lewinsky gave Clinton BJ's in exchange for a top federal job....and may have aided and abetted the sex rendezvous. Emanuel then left to run for Congress in 2001...this qualified Emanuel for $380,000 in F/M stock and options and a $20,000 annual fee..... plus all this lowlife could steal.
In Congress, the America-hating Emanuel put the US in financial jeopardy----he passed a bailout of Fannie and Freddie, cosponsoring the Housing and Economic Recovery Act of 2008, which also dissolved OFHEO. It moved their regulatory authority to the Federal Housing Finance Agency (FHFA), which took Fannie and Freddie under conservatorship in Sept 2008. The same act abolished the Federal Housing Finance Board (FHFB) and replaced it with the FHFA.
Rahm Emanuel was appointed to Freddie Mac in Feb 2000 by Bill Clinton, after serving as White House political director (where he sucked up to Clinton during the Monica Lewinski matter. Emanuel was on the F/M board until he left to run for Congress in 2001; this qualified Emanuel to receive $380,000 in F/M stock and options and a $20,000 annual fee.
According to the Chicago Tribune, during his tenure the board was notified by executives of their plans to misstate the earnings of Freddie Mac: “On Emanuel’s watch, the board was told by executives of a plan to use accounting tricks to mislead shareholders about outsize profits the government-chartered firm was then reaping from risky investments. The goal was to push earnings onto the books in future years, ensuring that Freddie Mac would appear profitable on paper for years to come and helping maximize annual bonuses for company brass.” (3/5/2009)
Excellent synopsis of the depth of corruption and raw greed surrounding Raines in particular and dems in general.
Who says affirmative action doesn’t work?
I think Raines would agree that it does.
Is this a great country, or what? /s
Make sure you read (above) how Raines co-opted taxpayers by using his govt position to enrich himself in the cap/trade bilking business.
Raines was sued and ordered to payback some of his extorted gains (but did he?).
The FBI, IRS and SEC should scrutinize all official documents filed by Raines---and determine the scope and dimension of any and all falsifications contined therein. If any documents contain falsifications that would negate his payout since he did not negotiate in good faith---hard and fast rule of contract rule.
Conveying (and stealing and destroying) an official record of the United States is punishable by 10 years in prison and a $250,000 fine, according to the United States Attorney's Office.
Can the retiree produce documents that show how he calculated they were entitled to million dollar pensions? Did the pensioners file all the proper IRS documents? (Stolen money is taxable.) Oh, never mind the FBI, SEC, IRS, DOJ can find out (/snix).
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REPORT POSSIBLE CRIMES: Conspiracy to steal; government fraud; theft of public property and official records, money laundering, tax evasion, computer trespass, US Postal and electronic fraud.
REPORT TAX FRAUD AND TAX LAW VIOLATIONS HERE:
IRS TOLL-FREE 1-800-829-0433----you may remain anonymous.
EMAIL .......OAAG.Tax@tax.USDOJ.gov
Report computer trespass, US Postal and electronic fraud here:
FBI TIP PAGE http://tips.fbi.gov/ (you may remain anonymous)
Ask the IRS to determine if taxes were paid (stolen money is taxable).
IRS TOLL-FREE 1-800-829-0433—-you may remain anonymous when reporting tax fraud.
Report government fraud, fiduciary negligence; signing off on falsified official documents here:
EMAIL askDOJ@usdoj.gov
If any of these are publicly-held companies go here
EMAIL enforcement@SEC.gov
This is going to trial in DC.
Sorry for any black conservatives on this board, but the jury will be largely black. Raines gave loads of $$$ to DC area charities and affordable housing groups. And he is black.
So, like the OJ trial, he will be found not guilty.
Clinton, Cuomo, Raines and Susan Wachter (Cuomo’s Policy Director at HUD, now at Wharton and on the news constantly) conspired to greatly ramp up risky lending at Fannie and Freddie which eventually blew up.
Wachter is still testifying on SAVING THE GSES!!!! And Obama loves her!
Here is email address: wachter@wharton.upenn.edu
We should flood her email with protests against her cronyism with Cuomo, Raines, Barney Frank and Obama.
I just sent her an email. Wharton grads should be mortally ashamed of this fool.
Raines’s total compensation in 2002 was $17.7 million. That year, 19 other top Fannie Mae executives were paid more than $1 million, 12 more than $2 million and nine more than $3 million, according to materials released at a hearing this fall by Rep. Richard H. Baker (R-La.), chairman of the House subcommittee that oversees Fannie Mae. Baker is a leading critic of the District-based mortgage finance company.
Among the Fannie Mae officials on Baker's list was Thomas E. Donilon, the company's executive vice president — law and policy, who was assistant secretary of state for public affairs and chief of staff to Secretary of State Warren Christopher in the Clinton administration. Donilon received $4.3 million.
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(no link)
Fannie , Freddie in the Political Spotlight
Washington Post - Monday, July 31, 2000
Author: Jerry Knight, Washington Post Staff Writer
Ordinarily when Fannie Mae announces its quarterly earnings, chief financial officer Timothy Howard has a conference call with analysts and talks for the better part of an hour about the numbers that drive the performance of Washington's biggest business.
Interest rate trends; comprehensive net interest margins; what it costs Fannie to borrow money, compared with what it costs the U.S. Treasury; LIBOR rates; T-bill spreads—it adds up to billions of dollars measured off in basis points, each of which is one one-hundredth of a percentage point.
You need an MBA just to understand the lingo and an Excel spreadsheet to make sense of the numbers.
But this month, when Fannie put out its second-quarter financials, the conference call was dominated not by the jargon of Wall Street, but the spin control of Washington. Thomas E. Donilon , Fannie ‘s executive vice president for law and policy, took over the teleconference and made a point of introducing Arne Christenson, senior vice president for regulatory policy. Christenson was, Donilon reminded the Wall Streeters, chief of staff to Newt Gingrich when he was House speaker.
When your chief executive, Franklin Raines, used to be President Clinton's budget director and your vice chairman, Jamie Gorelick , is Clinton's former deputy attorney general, it's important for the politically naive numbers nerds on Wall Street to understand that you have a balanced offense. Because from that point on in the call, it was pure politics.
“We manage our political risk with the same intensity we manage our other risks,” proclaimed Donilon , assuring investors they do not have to worry about all the bad things being said in Washington about Fannie Mae .
“It's political noise and not political risk,” he said.
(snip)
See also:
PDF: http://gsereport.com/2000/July22-Aug18.pdf
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FUN FACT:
Gorelick has told friends that she would seriously consider an offer some day to serve as defense secretary
Fannie Mae Takes New Approach in Crisis
Washington Post, The (DC) - Monday, September 27, 2004
Author: Jeffrey H. Birnbaum and David A. Vise, Washington Post Staff Writers
EXCERPT
Gorelick has told friends that she would seriously consider an offer some day to serve as defense secretary ...
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http://www.washingtonpost.com/wp-dyn/articles/A57900-2005Apr15.html
Fannie Mae ‘s Top Lawyer To Quit, Join Old Firm - Donilon Oversaw Relations With Regulators, Congress
Washington Post, The (DC) - Saturday, April 16, 2005
Author: Terence O’Hara, Washington Post Staff Writer
EXCERPT
From 2000 to 2003, Donilon received more than $7 million in compensation in the form of cash payments and restricted stock awards. Last year, he was paid his salary — $644,000 — but no bonus.
http://www.nytimes.com/2009/04/04/us/politics/04disclose.html
Financial Industry Paid Millions to Obama Aide
New York Times, The (NY) - Saturday, April 4, 2009
Author: JEFF ZELENY Reporting was contributed by Peter Baker, David Johnston, David D. Kirkpatrick, Eric Lipton and Charlie Savage.
EXCERPT
Thomas E. Donilon , the deputy national security adviser, reported earning $3.9 million as a partner at the Washington law firm O’Melveny & Myers. His disclosure form says major clients included Citigroup, Goldman Sachs and Apollo Management, a private equity firm in New York that specializes in distressed assets and corporate restructuring.
(no link)
D BUSINESS TIMES MOVERS & SHAKERS
The Washington Times - Monday, June 21, 1999
EXCERPT
FINANCIAL
Thomas Donilon joined Fannie Mae , the District, as senior vice president, general counsel and secretary. Vada Hill and Jaynie Studenmund were appointed senior vice presidents for marketing and for the Western regional office, respectively. Mr. Donilon , a partner with the O’Melveny and Myers law firm, has represented Fannie Mae on legal and regulatory issues since 1990 ...
CONTACT ANDREW ABEL, Chairperson, Finance Department abel@wharton.upenn.edu
MESSAGE How can Susan Wachter (Cuomo’s Policy Director at HUD) teach real estate finance at Wharton when she and her cronies at HUD and Fannie Mae----- Cuomo, Raines, Barney Frank----devastated the US economy with shady deals?
BACKSTORY Wachter (Cuomo’s Policy Director at HUD, now at Wharton and on the news constantly) conspired to greatly ramp up risky lending at Fannie and Freddie which eventually blew up. Wachter is still testifying on SAVING THE GSES!!!! And Obama loves her!
Wachter’s email address: wachter@wharton.upenn.edu
pinger
nice job
Ditto. :)
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http://www.muckety.com/Thomas-E-Donilon/1581.muckety
Thomas E. Donilon
Nickname: Tom
Gender: Male
Thomas E. Donilon personal relations:
Catherine Russell - spouse
Other current Thomas E. Donilon relationships:
Barack Obama administration - White House deputy national security adviser
Brookings Institution - trustee
Miller Center of Public Affairs - governing council member
Thomas E. Donilon past relationships:
2008 Bilderberg conference - participant
2008 Obama-Biden transition team - member
American Friends of Bilderberg - director
Fannie Mae - lobbyist & EVP
O’Melveny & Myers LLP - partner
U.S. Department of State - chief of staff
White House state dinner (11/24/2009) - invited guest
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http://www.freerepublic.com/focus/f-news/2258487/posts
Obama officials gave Bilderberg briefings
Politico ^ | 26 May 2009 | Kenneth P. Vogel
EXCERPT
Obama’s Deputy National Security Adviser Tom Donilon, who attended the 2007 and 2008 Bilderberg meetings and until recently sat on the steering committee that picked invitees, did not respond to a request for comment about how invitees are selected.
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http://www.prisonplanet.com/leaked-agenda-bilderberg-group-plans-economic-depression.html
http://canadafreepress.com/index.php/article/10854
According to Estulin’s sources, here are a few of the talking points and concerns for this year’s meeting:
* The future of the US dollar and US economy: The plan is for the Bilderberg Group players, through their allies in Washington and Wall Street to continue to deceive millions of savers and investors who believe the hype about the supposed up-turn in the economy. They are about to be set up for massive losses and searing financial pain in the months ahead. The bank “stress tests” now being conducted by Washington are little more than a shameless hoax: Based on the irrational assumption that the economy won’t get as bad as it already is!
* US unemployment: Solutions and assumptions (Stated as such in the pre-meeting booklet sent out to attendees.) Bilderberg is quietly assuming that US unemployment numbers will hover around 14% by the end of this year, far higher than the official numbers released by the US government.
* Depression or a prolonged stagnation? (Stated as such in the pre-meeting booklet sent out to attendees.) Bilderberg is looking at two options: Either a prolonged, agonizing depression that dooms the world to decades of stagnation, decline, and poverty ... or an intense-but-shorter depression that paves the way for a new sustainable economic world order, with less sovereignty but more efficiency.
* There will be a final push for the enactment of Lisbon Treaty, pending on Irish voting YES on the treaty in Sept or October. One of their concerns is addressing and neutralizing the anti-Lisbon treaty movement called “Libertas” led by Declan Ganley. One of the Bilderberger planned moves is to use a whispering campaign in the US media suggested that Ganley is being funded by arms dealers in the US linked to the US military.
In the coming days, watch for the new spin (i.e. LIE). They will begin pushing the idea that Obama has always been opposed to troop increases in Afghanistan, and it has been the military that put him up to it.
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