If you don't have time to read all the
details in this, skip to the bottom and see where these guys are now!
Way too many exec's who have adopted
the "personally win at any cost" and "rules are for others" attitudes
and are ruining our corporate structure and nations financial standing.
Remind you of Enron? Does this attitude carry to political candidates??
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
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.
Get $240 million and have to give back
$50 million--not bad work if you can get it. 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 hi s 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 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?
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
You need to let people know about this
email and who these crooks work for now!
