Posted on 09/19/2008 10:20:08 AM PDT by STARWISE
With home prices in the District up almost 78 percent in the past five years, there is growing concern there is a housing bubble that is about to burst - both locally and nationwide. Fannie Mae CEO Frank Raines, however, is dispelling those concerns.
In an interview with Bloomberg News, Raines, a former budget director in the Clinton administration, says the housing rally won't end like the stock market did three years ago.
"We do not see any sign of a housing price decline nationwide, let alone the bursting of a bubble," Raines is quoted as saying.
(Excerpt) Read more at washington.bizjournals.com ...
Thought it deserved its own thread.
***
Talk about audacity!
Oh, right. Now I feel better.
What? Me Worry?............
A lot of FReepers who should have known better were saying the same exact thing, as recently as 2006-2007.
Fannie Mae Ex-Officers Sued by U.S.
Franklin D. Raines, left, and J. Timothy Howard in 2004
....... Ofheo filed 101 civil charges against Mr. Raines; Fannie Mae’s former chief financial officer, J. Timothy Howard; and the former controller, Leanne G. Spencer.
The Ofheo director, James B. Lockhart III, said in a conference call yesterday: “We believed as an agency that these three individuals, separately and together, did serious harm to the company. There is a long list of charges that show they allowed this company to grow out of control.”
*snip*
Ofheo said it was seeking more than $100 million in civil penalties “in light of the multibillion-dollar harm” Fannie Mae caused to investors. The company recently completed a $6.3 billion restatement to correct its financial results up to 2004, among the largest for any public company.
$6.3 billion restatement?....That’s a lot of talking!...........
Ofheo said it was seeking more than $100 million in civil penalties “in light of the multibillion-dollar harm” Fannie Mae caused to investors. The company recently completed a $6.3 billion restatement to correct its financial results up to 2004,
among the largest for any public company.
Who does he think he's kidding? That bubble is going to pop, and very soon now that nobody is able to borrow money for a home that the bank knows is hyper-inflated in value. Unless that person has at least 50% to put down on it- or more!!
He's nuts if he thinks any bank is going to jump right back into the exact same situation that brought about this Fanny Mae/ Freddy mac crap.
~~~~~
In May, Fannie Mae agreed to pay $400 million in civil penalties to resolve charges with Ofheo and the S.E.C. The Justice Department and the S.E.C., while no longer investigating the company, have said that they continue to look at other former employees who were involved in the scandal.
Fannie Mae declined to comment on the Ofheo lawsuit.
Then why didn't you sign up back then to say so then? To say so now is too easy.
And this would have made a difference, how?
Raines was on the wrong side of history, but he was hardly alone. Housing cheerleaders were everywhere. And back in 2003, the fun had barely even started.
Quota-pimp Clinton made stupid PC appointments----he put know-nothing Franklin Raines into Fannie Mae where the crook proceeded to loot the agency while fraudulently cooking the books. (Wonder what Clinton's cut was?) Thanks to sap-happy Clinton, 2008 markets are devastated, and multi-billion dollar bailouts will crush the backs of working class taxpayers.
December 28, 2004
RAINES' FAREWELL: $26M+
By PAUL THARP NY POST
Although Fannie Mae chief Franklin Raines (Clinton appointee) was fired for bungling its books, he'll get a $26 million parachute — not counting a monthly pension of $116,300 for life.
The 55-year-old Washington, D.C. insider and his CFO J. Timothy Howard left their jobs under a cloud of suspicion that the execs undermined the financial soundness of Fannie Mae, creating losses of up to $9 billion.
Fannie Mae's filings federal Raines owns options giving him $5.8 million in net profit after redeeming them, plus another $8.7 million in deferred compensation for his six years at the helm. Raines has already collected $4.87 million in special performance shares this year and also keeps $5 million of paid-up life insurance. He and his spouse get free medical and dental benefits for life, worth over $1 million.
Last year, Raines earned $20 million in salary, bonuses and stock awards. The Securities and Exchange Commission said Raines broke accounting rules by playing with risky derivatives.
After he was fired, Raines told the board that he's entitled to get paychecks until next June 22 giving him another $600,000, which triggers a $2,000 monthly raise in his lifetime pension. He also says he's entitled to disputed options with a gross value of about $5.6 million. To keep Raines happy within philanthropic circles, Fannie Mae will match his charitable contributions by $10,000 a year.
Raines' CFO Howard gets a parachute valued at more than $13.1 million — not including a monthly pension of $36,071 for life. Howard gets free medical and dental coverage for himself and family for life, and as well as the matching $10,000 annual perk in making charitable contributions.
SOURCE http://www.nypost.com/business/37312.htm
Good news about another affirmative action crook, who should be in jail.
Instead he is receiving millions in retirement and in golden parachutes.
Thanks Liz, I just sent that to a whining liberal claiming that Raines was fired because he was black and is living in near poverty.
The thing is the sap-happy libs REALLY believe the outrageous lie that Raines was fired because he was black and is living in near poverty.
.
It’s beyond the [-redacted-]
Fringe!
Why attempt to disabuse a lib of any notions. Urban legend is their knowledge center of choice. I try to scare them more. Tell them their going to be sent to camps.
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