Posted on 01/06/2005 2:02:03 AM PST by Liz
A powerful Washington lawmaker wants Franklin Raines and other former and current Fannie Mae executives to fork over the more than $18 million in bonuses they got over three years if fraudulently inflated profits led to the payout.
Raines and Timothy Howard were given the boot four days before Christmas after the Securities and Exchange Commission ruled the company wrongly applied some accounting rules that inflated profits from 2001-2004........may lead to a $9 billion restatement of profits over that period.
The bonuses — including $10.6 million to Raines — were tied to Fannie Mae hitting certain profit targets.
The Department of Justice is investigating whether Raines, Howard and others knowingly misapplied the accounting rules in order to get the huge bonuses.
(Excerpt) Read more at nypost.com ...
God, she's disgusting.
I wonder if this guy will go to prison? Probably not. Fastow and his wife (Enron) haven't gone yet, have they? But Martha Stewart sits in a cell today - probably to draw attention away from our newest robber barons.
Fastow and his wife are both behind bars. Ken Lay and Skilling are next. Then Raines...........
"Federal regulator Office of Federal Housing Enterprise Oversight, Sept, 2004 released a damning report on accounting irregularities at Fannie Mae, that in 1998, Fannie misstated expenses in order to meet earnings targets that triggered huge executive bonuses."
Liz, please refresh an old Grampa's memory:
In 1998, who was our president, vice president, and attorney general, and what political party did these 3 criminal belong to?
Do a search.....I've put up several threads on this including Gorelick's 9/11 activities and her connection to Wilmer Cutler....one of DC's most prestigious law firms.
Hmmmmm. Gosh, that's a toughie (/sarc).
Now lemme guess.
Clinton? Gore? Reno?
ALL of 'em Dumbocrats?
Hey three out of three ain't bad. LOL.
Grampa Dave's sound financial advice to avoid investing in any company that was in bed with the Clintoons is still valid even 4 years after they left DC.
"Do a search"
I have. The whole thing stinks of cronyism and paybacks.
If only the MSM would go after the story like they did Enron and Haliburton?
Yup, sure is. Very sound.
I didn't realize Fastow had gone to jail. I must have missed his press release. Wasn't there a deal whereby they would serve their terms separately so that one would be available to care for their kids? Did that deal fall apart?
They should pay it back, with interest...pay all of the investgation costs involved (probably over $3 million), and serve at least 90 days in a county jail (notice I didn't say a fed joint...he doesn't need favors). And he should be prohibited from doing business with real estate for 10 years. Thats a fair judgement for the guy. We don't need to waste alot of court time like Martha or we don't need to steal jail space from really bad-guys. Lets get real here...he gets the punishment he deserves...and life goes on.
USA TODAY 1/04
According to his plea agreement, Fastow will serve 10 years in prison after pleading guilty to two counts of conspiracy to commit securities and wire fraud.
His wife, a former Enron assistant treasurer who pleaded guilty to filing a false joint income tax return, will serve at least five months.
They also agreed to forfeit more than $29 million.
The pair wanted to avoid the possibility that both might be in jail, and away from their two young boys, for an extended period.
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