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View Full Version : The men who brought down Wall St



stesul411
10-06-2008, 03:22 PM
Be sure to read the 'where they are now'!!

Here is a quick look into 3 former Fannie Mae executives who have brought down Wall Street.

1. Franklin Raines: was a Chairman and Chief Executive Officer at Fannie Mae. Raines was forced to retire from his position with Fannie Mae when auditing discovered severe reregulates in Fannie Mae's accounting activities. At the time of hisdeparture The Wall Street Journal noted, 'Raines, who long defended the company's accounting despite mounting evidence that it wasn't proper, issued a statement late Tuesday conceding that 'mistakes were made' and saying he would assume responsibility as he had earlier promised. News reports indicate the company was under growing pressure from regulators to shake up its management in the wake of findings that the company's books ran afoul of generally accepted accounting principles for four years.'Fannie Mae had to reduce its surplus by $9 billion.

Raines left with a 'golden parachute valued at $240 Million in benefits. The Government filed suit against Raines when the depth of the accounting scandal became clear.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 miss-stated Fannie Mae profits.

2. Tim Howard: Was the Chief Financial Officer of Fannie Mae. Howard 'was a strong internal proponent of using accounting strategies that would ensure a 'stable pattern of earnings' at Fannie. In everyday English - he was cooking the books. The Government Investigation determined that, 'Chief Financial Officer, Tim Howard, failed to provide adequate oversight to key control and reporting functions within Fannie Mae,'
On June 16, 2006, Rep. Richard Baker, R-La ., asked the Justice Department to investigate his allegations that two former Fannie Mae executives lied to Congressin October 2004 when they denied manipulating the mortgage-finance giant's income statement to achieve management pay bonuses. Investigations by federal regulators and the company's board of directors since concluded that management did manipulate 1998 earnings to trigger bonuses. Raines and Howard resigned under pressure in late 2004.

Howard's Golden Parachute was estimated at $20 Million!


3. Jim Johnson: A former executive at Lehman Brothers and who was later forced from his position as Fannie Mae CEO. A look at the Office of Federal Housing Enterprise Oversight's May 2006 report on mismanagement and corruption inside Fannie Mae, and you'll see some interesting things about Johnson. Investigators found that Fannie Mae had hidden a substantial amount of Johnson's 1998 compensation from the public, reporting that it was between $6 million and $7 million when it fact it was $21 million.' Johnson is currently under investigation for taking illegal loans from Countrywide while serving as CEO of Fannie Mae.


Johnson's Golden Parachute was estimated at $28 Million.

WHERE ARE THEY NOW?



1. FRANKLIN RAINES? Raines works for theObama Campaign as Chief Economic Advisor


2. TIM HOWARD? Howard is also a Chief Economic Advisor to Obama


3. JIM JOHNSON? Johnsonhired as a Senior Obama Finance Advisor and was selected to run Obama's Vice Presidential Search Committee

IF OBAMA PLANS ON CLEANING UP THE MESS - HIS ADVISORS HAVE THE EXPERTISE - THEY MADE THE MESS IN THE FIRST PLACE. Would you trust the men who tore Wall Street down to build the New Wall Street?

Bird_Flu
10-06-2008, 03:36 PM
Obama is an :asshat:! I wouldn't put those guys on my advisory team for any amount of money.

Bill
10-06-2008, 03:37 PM
FALSE

http://www.snopes.com/politics/obama/fanniemae.asp

BigDukeSix
10-06-2008, 03:40 PM
Aquiles Suarez, listed as an economic adviser to the McCain campaign in a July 2007 McCain press release (http://209.85.141.104/search?q=cache:aNG0U0R_2wsJ:www.vote-john-mccain-2008.com/Informing/News/PressReleases/268a0478-50ce-4cb2-8a27-9c74c8fcc8a4.htm+aquiles+suarez+economic+advisoer+ john+mccain&hl=en&ct=clnk&cd=7&gl=us&client=firefox-a), was formerly the director of government and industry relations for Fannie Mae. The Senate Lobbying Database says Suarez oversaw the lending giant's $47,510,000 lobbying campaign from 2003 to 2006.

The McCain campaign's vice-chair Wayne Berman and its congressional liaison John Green made $1.14 million working on behalf of Fannie Mae for lobbying firm Ogilvy Government Relations. Green made an additional $180,000 from Freddie Mac. Arther B. Culvahouse Jr., the VP vetter who helped John McCain select Sarah Palin, earned $80,000 from Fannie Mae in 2003 and 2004, while working for lobbying and law firm O'Melveny & Myers LLP. In addition,at least 20 McCain fundraisers have lobbied for Fannie Mae and Freddie Mac, pocketing at least $12.3 million over the last nine years.

McCain campaign manager Rick Davis was head of the Homeownership Alliance, a lobbying association that included Fannie Mae, Freddie Mac, real estate agents, homebuilders, and non-profits. The organization opposed congressional attempts at regulation of Fannie and Freddie, along the lines of what John McCain is currently proposing. In his capacity of president of the group, Davis went on record in 2003 and insisted that no further reform of the lenders was necessary, in contradiction to his current boss's sentiments. "[Fannie and Freddie] are subject to an innovative and stringent risk-based capital stress test," Davis wrote. "The toughest in the financial services industry."


And your point is what? :flipoff2:

stesul411
10-06-2008, 03:54 PM
And your point is what? :flipoff2:

To get you guys riled up, it was getting a little slow in here.


As it stands we're F&^%ed either way.

Bill
10-06-2008, 03:56 PM
Agreed. I would rather see the Vice Presidential canidates as the Presidential canidates, and even then there is no "good" choice.

OverkillZJ
10-06-2008, 11:44 PM
The first post might be bullshit, but this is not: http://www.youtube.com/watch?v=1RZVw3no2A4&feature=iv&annotation_id=event_597487

I don't care who your political party is, Obama is going to **** this country up more than McCain (its sad when it comes to that kind of a choice though, isn't it?)