[StBernard] Truth behind Congress rejecting bail-out

Westley Annis Westley at da-parish.com
Wed Oct 1 00:43:41 EDT 2008


Oh, but according to the liberals it's all the Republicans fault. Forget about what Christopher Dodd and Barney "lollipop boy" Frank did.

John

> -----------------------------------------------------
> Be sure to read the "where they are now"!! Interesting stuff.
>
> Here is a quick look into 3 former Fannie Mae executives who have brought
> down Wall Street. Laying blame where due:
>
> 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.
>
> 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 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
>
> 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 ?
>
> Jer





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