Here, in September, 2008, we are being told that our economy is in a meltdown, the stock market is reeling, politicians are finger-pointing (what’s new?), and we’re being asked to support a “bailout” program that will eventually burden the American taxpayer with over a TRILLION dollars in additional debt, or face a financial armageddon. There is plenty of blame to go around, but the following has to be regarded as an example of one of the worst abuses of power in the financial world, ever. It’s a short read, but it speaks volumes about how power corrupts when no one cares enough to expose it, and demand that it be corrected. If you’re wondering how we got into this mess, you need to read this. Three Men who brought down Wall Street
Kevin Bennett

Here is a quick look into three former Fannie Mae executives who have brought down Wall Street.

Be sure to read the ‘where they are now’ at the end!!

1. Franklin Raines headed the Office of Management and Budget in the Clinton administration, before he became Chairman and Chief Executive Officer at Fannie Mae. Raines was forced to retire from his position with Fannie Mae in 2006 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. Read more here: http://housingdoom.com/2006/12/18/fannie-charges/>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.

2.Tim Howard – Howard was a 22-year veteran of Fannie Mae when he became Chief Financial Officer in 1990 and was named Vice Chairman in 2003.

Howard was considered ‘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!

3. Jim Johnson – Executive Assistant to Walter Mondale, 1977-81 CEO of Fannie Mae, 1991-98. 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.
http://www.ofheo.gov/media/pdf/FNMSPECIALEXAM.PDF

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 $7million when in 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?

1. FRANKLIN RAINES? Raines works for the Obama

Campaign as Chief Economic Advisor.

2.
TIM HOWARD? Howard is also a Chief Economic Advisor to Obama.

3. JIM JOHNSON? Johnson was hired as a Senior Obama Finance
Advisor and was selected to run Obama’s Vice Presidential Search Committee.

Observation:
IF OBAMA PLANS ON C