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
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.
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:
Filed under: Barack Obama, Fannie Mae, Fannie Mae CEO Hired By Obama, Financial Crisis, John McCain, Politics, Sara Palin Tagged: | Barack Obama, Economy, Fannie Mae, Financial Crisis, John McCain, Wall Street Crooks, Who is responsible for Wall Street