Obama’s Million Dollar Men From Fannie Mae – Who Are Franklin Raines, Tim Howard and Jim Johnson – How Big Were The Golden Parachutes – UPDATED

Obama talks about greed on Wall Street – making those responsible account for their activities. Is that so? How about the Wall Street Big Shots Obama hired to work on his campaign – the very same big shots who brought Fannie Mae Down. 

Franklin Raines was a Chairman and Chief Executive Officer at Fannie Mae. He served as President Bill Clinton’s Budget Director. Raines was forced to retire from his position with Fannie Mae  when auditing discovered severe irregulaties in Fannie Mae’s accounting activities. At the time of his departure 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.” http://www.washingtonpost.com/wp-dyn/content/discussion/2006/02/23/DI2006022301805.html

youtube=http://www.youtube.com/watch?v=C1vSqF9Hm7A&NR=1

Fannie Mae had to reduce its surplus by $9 billion. http://www.economist.com/finance/displaystory.cfm?story_id=E1_PVQGGTT

Raines left with a “golden parachute valued at $240 Million in benefits. The Goverment filed suit against Raines when the depth of the acounting scandel 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.

http://www.nytimes.com/2006/12/07/business/07fannie.html?ex=1323147600&en=14bcda881f8f1805&ei=5088&partner=rssnyt&emc=rss

  

The Court ordered Raines to return $50 Million Dollars he received in bonuses based on the mis-stated Fannie Mae profits. WHERE IS RAINES NOW ? Raines works for the Obama Campaign as Chief Economic Advisor. http://en.wikipedia.org/wiki/Franklin_Raines , http://www.youtube.com/watch?v=SYI0mHWQeD8. The wikipedia site has be rewritten – contact wikipedia for an explanation – or search the WEB to for articles on the rewrite. 

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.  http://www.signonsandiego.com/uniontrib/20041230/news_lz1ed30bottom.html  http://www.usatoday.com/money/companies/regulation/2004-09-24-fannie-cfo_x.htm

The Government Investigation determined that,  “Chief Financial Officer, Tim Howard, failed to provide adequate oversight to key control and reporting functions within Fannie Mae,” http://www.usatoday.com/money/companies/regulation/2004-09-24-fannie-cfo_x.htm

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 Congress in October 2004 when they denied manipulating the mortgage-finance giant’s income statement to achieve management pay bonuses. http://www.usatoday.com/money/industries/banking/2006-06-14-fannie-execs_x.htm

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. http://www.usatoday.com/money/industries/banking/2006-06-14-fannie-execs_x.htm , http://michellemalkin.com/2004/09/23/the-fannie-mae-freddie-mac-racket/?print=1

Howard’s Golden Parachute was estimated at $20,000,000. http://accounting.smartpros.com/x46646.xml

Where is Howard now? Howard is a Chief Economic Advisor to Barack Obama. http://online.wsj.com/article/SB109770752803244715.html

Jim Johnson: A former aid to Walter Mondale, a former executive at Goldman Sachs and Lehman Brothers and who was later forced from his position as Fannie Mae CEO, was hired as a Senior Obama Finance Advisor. Johnson is so senior that he was selected to run Obama’s Vice Presidential Search Committee, the Committee that selected Joe Biden.  http://www.associatedcontent.com/article/781141/barack_obama_taps_former_fannie_mae.html

The National Review suggested – “Look at the former Fannie Mae Chief Obama choose for the job (selecting Biden). …. specifically, 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.”  http://corner.nationalreview.com/post/?q=NWM3MDFkM2QwNzRjODk3NWZhZTc3OGIxNDQ4Nzc2NDc=

Now, this might seem the sort of inside-Washington dealing that Obama says he wants to change. If so, Obama will have Johnson himself there to help.       http://corner.nationalreview.com/post/?q=NWM3MDFkM2QwNzRjODk3NWZhZTc3OGIxNDQ4Nzc2NDc=

It is ironic that the National Review would have made that comment. Obama gave a speech Monday to Wall Street Bankers addressing the Finacial Crisis where he called for,  “reappraisal of values.” and stated “”The danger with this mentality isn’t just that it offends our morals, it’s that it endangers our markets,”. Obama’s Speech Writer – Jim Johnson. http://forestbrowne.newsvine.com/_news/2007/09/17/967528-obama-reappraise-wall-street-values

This revelation contradicts earlier reports that Johnson had left the Campaign when he came under investigation for taking illegal loans from Country Wide Financial while serving as CEO at Fannie Mae.    http://online.wsj.com/public/article_print/SB121321030258665089.html 

On September 9, 2008, Obama critized “Golden Parachute” payments to Fannie Mae executives. Jim John’s parachute at the time he left Fannie Mae was estimated at $28 Million. http://www.politico.com/news/stories/0708/11781_Page2.html

THE NATIONAL REVIEW HAD IT RIGHT – 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?

WATCH BANKING COMMITTEE CHAIRMAN BARNEY FRANK SAY, “FANNIE IS FINE – THERE IS NO PROBLEM”  http://www.foxnews.com/video-search/m/21012738/mortgage_meltdown_timeline.htm?q=financial+mess+timeline

McCauleysweblog: The following Articles describe the role of “political ideology” in the Financial Crisis – How Politics fueled the crisis:

Professor Stan Liebowitz: The Real Scandal – http://www.nypost.com/seven/02052008/postopinion/opedcolumnists/the_real_scandal_243911.htm?page=0

Professor Thomas J DiLorenzo: The CRA Scam and its Defenders: http://www.mises.org/story/2963

John R Lott, Jr : Analysis – Reckless Mortgages Brought Financial Market To Its Knees http://www.foxnews.com/story/0,2933,424945,00.html

Infamous Video of Committee Meeting on Fannie Reform

12 Responses

  1. Hey,

    You better stop telling the truth if it hurts Obama and helps the County. From now on the truth will not be tolerated.

  2. Good post and lots of good information! I agree with Secret Squirrel the Obama camp will be sending out their thugs to hush you up from telling the truth and facts! Obama is right dap in the middle of this melt down!

  3. Better be careful, Orwell, I mean Obama’s “Truth Squad” is gonna come after you.

    Don’t you know it is blasphemy to speak the truth about the “One”.

    And for all the Obama-tards, I know, I know: Bush, Bush, Bush, Bush. McCain’s Bush’s third term.

    I know, I know. Blah, blah, blah!

  4. Do you really think it matters? McCain or Obama? Both of them are in the middle of this mess. No matter who is elected, the system is not going to be overhauled.

    Those in power love the fact that we’re so focused with who is more connected to which Fannie or Freddie exec/lobbyist. We can keep focusing on these trivial issues and they can keep taking away more and more of our freedoms.

    We all know how we got into this mess – easy credit and subprime loans. It’s how we get out of it that’s going to make our break our country.

    Unfortunately, I don’t feel either candidate can truly reform and overhaul the system. They’ll keep trying to prop up this house of cards, but eventually, it’s going to all fall down.

  5. Historically, government meddling in the economy has caused all of the major depressions. Hoover expanded government. Roosevelt ran on a “smaller government” platform, then totally flip-flopped. The actions by Hoover/Roosevelt plunged our economy into a Great Depression that lasted 10 years. We did not recover until after WW II (the war prolonged it too). The FED is the biggest problem. They pump more money into the banks making credit way too easy. Contrary to popular opinion, the market is highly regulated – simply by the existence of the FED and FDIC. We have a failed Keynesian-style fiat, centralized banking system.

    There is no such thing as a free lunch. You cannot have your Keynesian soup and eat it too!!!
    =========
    Personally, I think a better plan would be the following:

    Give a 700 billion dollar tax rebate (that should be around 3,500 each tax payer if there are now 200 million tax payers) with the following caveat:

    You must immediately deposit your money into one or more banks or financial institutions for at least 6 months before spending. You may electronically transfer any amount at anytime during this period.

    The institutions will compete for their piece of the 700 billion.
    Let the bad loans fail or folks like Warren Buffet may buy them at highly discounted values.

    Another consideration:

    Place a freeze on the paper money supply for 6 months. They (the FED) may not print up anymore money during this period.

    This would be a bailout for “main street not wall street”, so the Democrats should be happy. It is also a “free market solution”, so the Republicans should be happy.
    In addition, the taxpayer will not lose any money, unless they make a very bad choice or take a very high risk with their $3,500 investments over the next 6 months.

    The FED did a bad thing by making interest rates artificially low.

    � anyway, just a thought.

    FYI – interesting take on the whole thing:
    http://mises.org/story/3131

    http://mises.org/story/3132

  6. Wow!
    I’m glad someone else feels the same about the Fannie Mae boys…everytime Christopher Dodd stands in front of the mic all I can think about is how much money he received from Fannie Mae! It looks like FOXNEWS – Hannity’s America is finaly reporting the truth. I think what was on today about the Ohio early votes is something to watch..one article said today, “Someone in the Obama camp knew the loopholes of the law knowing Ohio would be a tough state, so they found a way to get the jump on votes including paid buses that would take people where needed…”
    Obama keeps working on that..out of many we are ONE..
    “I’m going to be so persuasive that a light will shine through the clouds and say I must vote for Barack and you’ll have an epiphany..” Barack Obama – Lebanon, New Hampshire – January 7, 2008.

  7. Thanks for the info!

  8. If these events are the truth, why would there not be an investigation and crimal charges filed against these individuals?

    Are the McCain people, crazy or should this be the basis for his Tuesday night debate with Obama> ,and then he should call for an investigation by Congress?

  9. […] instead got a $240,000,000 dollar parachute. Raines isn’t he only FM connection on Obama’s staff Obama’s Million Dollar Men From Fannie Mae – Who Are Franklin Raines, Tim Howard and Jim Johns… Kratty, Yes, the homeowners that are defaulting are partially to blame, however the vast majority […]

  10. […] Obama’s Million Dollar Men From Fannie Mae – Who Are Franklin Raines, Tim Howard and Jim Johnson… […]

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