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3 men that brought the wall street down!


shooterbenedetto

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Here is a quick look into 3 former Fannie Mae executives who have brought

down Wall Street.

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 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 responsi bi lity 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 t hat 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.

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 Congress in 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!

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 re por t 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?

FRANKLIN RAINES? Raines works for the Obama Campaign as Chief Economic

Advisor

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

JIM JOHNSON? Johnson hired 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 ?

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