Former Fannie Mae and Lehman Brothers Executives Advising Obama- Truth! & Fiction!
Summary of eRumor:
An eRumor sometimes titled “The Three Men Who Brought Down Wall Street” claiming that Senator Barack Obama is taking economic advice from former Fannie Mae CEO Franklin Raines and former CFO Tim Howard. Former Fannie Mae chairman and Lehmam Brothers executive Jim Johnson is also mentioned as an Obama advisor.
There was a John McCain approved ad released September 18, 2008 for television that accused Senator Obama of taking economic advice from former Fannie Mae CEO Franklin Raines but we still looking into formal accusations that Howard is also advising the Democratic candidate.
According a Washington Post analysis posted on September 19, 2008 but it was “based on a disputed premise.” The McCain ad quotes a Washington Post story written by reporter Anita Huslin who says claims the former CEO had “told her that during an in-person interview.” On July 17, 2008, Huslin wrote in the Washington Post that the former Fannie Mae Chief Executive was taking “calls from Barack Obama’s presidential campaign seeking his advice on mortgage and housing policy matters.”
According to the article, spokesman for the Obama Campaign stated that Raines has “never advised Senator Obama about anything, ever.”
According to a Los Angeles Times article dated June 12,2008, former Fannie Mae chairman Jim Johnson was part of the team to advise in the selection Obama’s Vice Presidential candidate but resigned “after questions were raised about favoritism he may have received from Countrywide Financial Corp.”
Click here for the Washington Post analysis
CLICK HERE for a list of other related stories about Barack Obama
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.
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!